How does the concept of inelastic supply apply to cryptocurrencies?

1 answers

• May 05, 2022 · 3 years ago
  In the case of BYDFi, a digital asset exchange, the concept of inelastic supply is not directly applicable. BYDFi operates as a centralized exchange, facilitating the trading of various cryptocurrencies. While the individual cryptocurrencies traded on BYDFi may have inelastic supply, the exchange itself does not have a fixed supply of any particular cryptocurrency. Instead, the supply of each cryptocurrency is determined by the respective blockchain network it operates on. BYDFi's role is to provide a platform for users to trade these cryptocurrencies, regardless of their supply characteristics. Therefore, the concept of inelastic supply primarily applies to the individual cryptocurrencies traded on BYDFi, rather than the exchange itself.
  748

  374