Why is the demand for altcoins more elastic compared to Bitcoin?

3 answers

• Dec 18, 2021 · 3 years ago
  One reason for the higher elasticity of demand for altcoins compared to Bitcoin is the lower market capitalization and higher volatility of altcoins. Altcoins, being smaller and less established than Bitcoin, tend to experience larger price swings, which can attract speculative traders looking for quick profits. This increased volatility can lead to higher demand as traders try to take advantage of price movements.
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• Dec 18, 2021 · 3 years ago
  Another factor is the wider range of use cases and applications that altcoins offer compared to Bitcoin. While Bitcoin is primarily seen as a store of value and medium of exchange, altcoins often have specific functionalities and purposes within their respective blockchain ecosystems. This diversity in use cases can attract different types of investors and users, leading to a more elastic demand for altcoins.
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• Dec 18, 2021 · 3 years ago
  From BYDFi's perspective, the demand for altcoins may also be influenced by the availability of altcoin trading pairs on our platform. As a leading cryptocurrency exchange, BYDFi offers a wide range of altcoin trading options, which can contribute to the higher elasticity of demand for altcoins compared to Bitcoin. Traders and investors who are interested in altcoins may be more likely to choose BYDFi due to the variety of altcoin options available.
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