The concept of supply and demand is of utmost importance in a market economy, as it has a direct impact on the prices of goods and services. These two factors establish the relationship between a specific product or asset and the willingness of individuals to buy or sell it.
Supply refers to the quantity of a particular material, asset, product, or service that is available in the economy. It is not solely about the total amount in existence, but rather the amount that people can actually acquire.
On the other hand, demand represents the desire for products and services. It helps determine the number of individuals interested in the offerings of an organization and the price they are willing to pay for them.
When institutions or influential buyers gain access to a limited asset, the market response becomes evident. Bitcoin serves as a prime example of a scarce asset that has revolutionized the finance industry by showcasing the advantages of owning a digital asset with a finite supply. As the demand for Bitcoin increases, its value also experiences a corresponding rise.
Author: First Digital Trust
Gunnar Jaerv, the chief operating officer of First Digital Trust, is an experienced entrepreneur with a background in technology startups. He has established various tech companies, such as Peak Digital in Hong Kong and Elements Global Enterprises in Singapore.
Financial advisors cite market timing and regulatory compliance as primary reasons for their reluctance to…
Zircuit is a modular ZK rollup with AI-enabled security at the sequencer level. It attracts…
According to Barron's, US Core PCE in April gained 2.8% YoY, same as March. Monthly…
The stablecoin issuer reorganizes into four divisions, with Tether's Bitdeer investment under the Power division…
TokenUnlocks has released data indicating significant upcoming unlocks scheduled for June.
Upbit has unveiled plans to introduce BEAM trading pairs, expanding its range of supported digital…
This website uses cookies.