How does the law of diminishing marginal utility affect the demand for digital currencies?

1 answers

• Khalima MadaminjanovaApr 19, 2021 · 4 years ago
  At BYDFi, we believe that the law of diminishing marginal utility does impact the demand for digital currencies. As more people enter the market and the supply of digital currencies increases, the marginal utility of each additional unit decreases. This means that the demand for digital currencies may not grow at the same rate as before. However, it's important to note that the demand for digital currencies is influenced by various factors, such as technological advancements, regulatory changes, and market sentiment. Therefore, while the law of diminishing marginal utility plays a role, it is not the sole determinant of the demand for digital currencies.
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