What are the advantages and disadvantages of measuring digital currency volume in shares or dollars?

3 answers

• Dec 30, 2021 · 3 years ago
  Using shares as a unit of measurement for digital currency volume has its advantages. Firstly, it allows for a more accurate representation of ownership and value. By measuring volume in shares, investors can easily understand the proportion of the total supply they own. Additionally, it provides a standardized unit of measurement that can be easily compared across different digital currencies. However, one of the drawbacks is that it may not accurately reflect the actual market value of the digital currency, as the price of shares can be influenced by factors other than the currency itself.
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• Dec 30, 2021 · 3 years ago
  On the other hand, measuring digital currency volume in dollars has its own set of advantages. It provides a more tangible and relatable unit of measurement for investors who are more familiar with traditional financial markets. It also allows for easier comparison between digital currencies and other asset classes. However, one of the disadvantages is that the value of digital currencies can be highly volatile, and measuring volume in dollars may not accurately capture this volatility. Additionally, using dollars as a unit of measurement may not fully capture the decentralized nature of digital currencies.
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• Dec 30, 2021 · 3 years ago
  From a third-party perspective, BYDFi believes that measuring digital currency volume in shares or dollars both have their merits. It ultimately depends on the specific needs and preferences of the investors. Some may prefer the transparency and accuracy provided by measuring volume in shares, while others may find the familiarity and comparability of dollars more appealing. It is important for investors to consider these advantages and disadvantages when making investment decisions in the digital currency market.
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