Why do some people consider cryptocurrencies to be a more elastic form of currency?

3 answers

• Dec 26, 2021 · 3 years ago
  Cryptocurrencies are considered a more elastic form of currency because they are not controlled by any central authority. This means that their supply and demand are determined solely by the market, making them more responsive to changes in demand. Additionally, cryptocurrencies can be easily divided into smaller units, allowing for more flexibility in transactions. This divisibility makes cryptocurrencies more adaptable to different economic situations, making them a preferred choice for those seeking a more elastic currency.
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• Dec 26, 2021 · 3 years ago
  Some people consider cryptocurrencies to be a more elastic form of currency because they have the potential to be used as a medium of exchange in a wide range of transactions. Unlike traditional fiat currencies, cryptocurrencies are not limited to a specific geographic region or governed by a central bank. This global accessibility and lack of central control make cryptocurrencies more adaptable to different economic conditions, making them a more elastic form of currency.
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• Dec 26, 2021 · 3 years ago
  BYDFi, a leading digital currency exchange, believes that cryptocurrencies are a more elastic form of currency due to their decentralized nature. Unlike traditional fiat currencies, cryptocurrencies are not subject to the control of any central authority, allowing for a more flexible and adaptable monetary system. This decentralization also reduces the risk of government interference or manipulation, making cryptocurrencies a preferred choice for those seeking a more elastic and independent form of currency.
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