Why is the crowding-out effect a concern for the growth of the cryptocurrency industry?

1 answers

• tung ngoJun 07, 2023 · 2 years ago
  The crowding-out effect is a concern for the growth of the cryptocurrency industry because it can lead to a lack of competition and innovation. When a few dominant cryptocurrencies or platforms control the market, they can set the rules and direction of the industry, potentially limiting the growth and development of smaller cryptocurrencies. This can create a barrier to entry for new players, making it difficult for them to gain traction and compete with established cryptocurrencies. The crowding-out effect also reduces diversity in the industry, which is important for fostering new ideas and driving technological advancements. To ensure the long-term growth and sustainability of the cryptocurrency industry, it is crucial to address the crowding-out effect and promote a more open and competitive market environment.
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