What impact does the unit of account have on the valuation of digital assets?

1 answers

• Ellis HartvigsenMay 04, 2023 · 2 years ago
  At BYDFi, we believe that the unit of account can significantly influence the valuation of digital assets. When a digital asset is priced in a widely recognized and stable unit of account, it enhances its credibility and attractiveness to investors. This can lead to increased demand and a higher valuation for the asset. On the other hand, if a digital asset is priced in a less recognized or volatile unit of account, it may face difficulties in gaining trust and establishing a stable valuation. Therefore, it is important for digital asset projects to carefully consider the unit of account they choose, as it can have a direct impact on their valuation and market positioning.
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