How does m2 contribute to the valuation of digital assets?

3 answers

• Dec 17, 2021 · 3 years ago
  The m2 money supply plays a significant role in the valuation of digital assets. M2 represents the total amount of money in circulation, including cash, checking accounts, and savings deposits. As digital assets gain popularity and acceptance, the demand for them increases, leading to an increase in their value. The m2 money supply affects the overall liquidity in the market, and a higher m2 can indicate a higher purchasing power, which can positively impact the valuation of digital assets.
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• Dec 17, 2021 · 3 years ago
  When it comes to valuing digital assets, the m2 money supply is an important factor to consider. As the m2 money supply increases, it can lead to inflation and a decrease in the purchasing power of traditional currencies. This can drive investors towards digital assets as a store of value and hedge against inflation. The increased demand for digital assets can contribute to their valuation and potentially drive up their prices.
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• Dec 17, 2021 · 3 years ago
  BYDFi, a leading digital asset exchange, recognizes the significance of the m2 money supply in the valuation of digital assets. The m2 money supply reflects the overall economic conditions and the level of liquidity in the market. As BYDFi continues to provide a secure and reliable platform for trading digital assets, it takes into account various factors, including the m2 money supply, to ensure fair and accurate valuations for its users.
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