Are there any exceptions to the law of diminishing marginal utility in the context of cryptocurrencies?

1 answers

• Mar 16, 2022 · 3 years ago
  At BYDFi, we believe that the law of diminishing marginal utility still holds true in the context of cryptocurrencies. As more units of a cryptocurrency are acquired, the marginal utility derived from each additional unit tends to decrease. This is because the initial excitement and hype surrounding the cryptocurrency may fade, and the value of each unit becomes less significant. However, it's important to note that exceptions can occur. For example, if a cryptocurrency introduces innovative features or solves a pressing problem in the industry, the marginal utility of each unit may increase. Additionally, market conditions and investor sentiment can also influence the perceived utility and value of a cryptocurrency, leading to exceptions to the law of diminishing marginal utility.
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