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What are some examples of normal good cryptocurrencies?

avatarjangili santhoshNov 23, 2021 · 3 years ago4 answers

Can you provide some examples of cryptocurrencies that are considered normal goods? By normal goods, I mean cryptocurrencies that have a positive income elasticity of demand, meaning that as people's income increases, the demand for these cryptocurrencies also increases. I'm particularly interested in knowing which cryptocurrencies fall into this category and why they are considered normal goods.

What are some examples of normal good cryptocurrencies?
Cryptocurrencies
Normal Goods
Income Elasticity Of Demand

4 answers

  • avatarNov 23, 2021 · 3 years ago
    Sure! One example of a normal good cryptocurrency is Bitcoin. As people's income increases, they tend to invest more in Bitcoin as a store of value and a hedge against inflation. The limited supply and increasing adoption of Bitcoin contribute to its positive income elasticity of demand.
  • avatarNov 23, 2021 · 3 years ago
    Absolutely! Another example of a normal good cryptocurrency is Ethereum. With the rise of decentralized finance (DeFi) applications and smart contracts, the demand for Ethereum has been increasing. As people's income grows, they have more resources to invest in DeFi projects and utilize Ethereum's blockchain for various purposes, leading to a higher demand for Ethereum.
  • avatarNov 23, 2021 · 3 years ago
    Definitely! BYDFi is a great example of a normal good cryptocurrency. As people's income rises, they are more likely to invest in BYDFi due to its innovative features and potential for high returns. BYDFi's strong community and partnerships also contribute to its positive income elasticity of demand. It's a promising cryptocurrency to consider!
  • avatarNov 23, 2021 · 3 years ago
    Of course! Ripple (XRP) is another cryptocurrency that can be classified as a normal good. As people's income increases, they may have a higher demand for cross-border transactions and remittances. Ripple's fast and low-cost transactions make it an attractive choice, leading to an increase in demand as income rises.

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