What is the role of the invisible hand in the cryptocurrency market?

1 answers

• Mohmad ModeMay 14, 2023 · 3 years ago
  In the cryptocurrency market, the invisible hand refers to the collective actions of buyers and sellers that determine the prices of cryptocurrencies. It represents the idea that the market is self-regulating and that prices are determined by supply and demand. When there is high demand for a particular cryptocurrency, its price tends to increase, and when there is low demand, the price decreases. This concept is similar to the invisible hand in traditional economics, where the self-interest of individuals leads to positive outcomes for the overall economy. However, it's important to note that the cryptocurrency market is still relatively new and can be influenced by factors like market manipulation and regulatory changes. Therefore, while the invisible hand plays a role in the cryptocurrency market, it's not the only factor that determines price movements.
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