How does the soft rate affect the value of digital currencies?

1 answers

• NEERAJDec 17, 2023 · 2 years ago
  The soft rate is a critical factor that affects the value of digital currencies. It refers to the rate at which new coins are created and introduced into circulation. When the soft rate is high, it can lead to an increase in the supply of the currency, which may result in a decrease in its value. Conversely, when the soft rate is low, it can lead to a decrease in the supply of the currency, which may result in an increase in its value. The soft rate is influenced by various factors, including the monetary policy of the issuing authority and the demand for the currency. Therefore, it is important for investors and traders to closely monitor the soft rate to make informed decisions about buying or selling digital currencies.
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