What is the impact of normal vs inferior goods elasticity on the demand for cryptocurrencies?

1 answers

• DazencobaltNov 17, 2022 · 3 years ago
  At BYDFi, we've observed that the elasticity of normal vs inferior goods can have varying effects on the demand for cryptocurrencies. While normal goods with higher elasticity may lead to a decrease in demand for cryptocurrencies as their prices rise, inferior goods with lower elasticity may actually drive up the demand for cryptocurrencies. This is because consumers may view cryptocurrencies as a more attractive investment option when faced with higher prices for inferior goods. As a result, the demand for cryptocurrencies can be influenced by the elasticity of different types of goods in the market.
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