What is the economic definition of surplus in the context of cryptocurrencies?

3 answers

• Khalil IbrahimJan 18, 2025 · a year ago
  The economic definition of surplus in the context of cryptocurrencies refers to the situation where the quantity of a particular cryptocurrency exceeds the demand for it in the market. This surplus can occur due to various factors such as increased mining activity, decreased demand from investors, or the introduction of new competing cryptocurrencies. When a surplus exists, it typically leads to a decrease in the price of the cryptocurrency as sellers try to offload their excess supply. This can create buying opportunities for traders looking to accumulate the cryptocurrency at a lower price.
  599

  300
• Fernando DonatiApr 03, 2022 · 4 years ago
  Surplus in the context of cryptocurrencies refers to the excess supply of a particular cryptocurrency in the market. It occurs when the quantity of the cryptocurrency available for sale exceeds the demand from buyers. This surplus can have a significant impact on the market as it often leads to a decrease in the price of the cryptocurrency. Traders and investors closely monitor surplus situations as they can present buying opportunities or indicate a potential oversaturation of the market.
  494

  165
• Bikram DasOct 21, 2023 · 2 years ago
  In the context of cryptocurrencies, surplus refers to the excess supply of a specific cryptocurrency in the market. This surplus can occur due to factors such as increased mining activity, decreased demand, or the introduction of new cryptocurrencies. When a surplus exists, it can lead to a decrease in the price of the cryptocurrency as sellers try to sell off their excess holdings. However, it's important to note that surplus situations can also present buying opportunities for traders looking to accumulate the cryptocurrency at a lower price. At BYDFi, we closely monitor surplus situations to identify potential market trends and opportunities for our users.
  667

  167