What does underlying mean in the world of cryptocurrency?

3 answers

• seal maithMay 04, 2021 · 5 years ago
  In the world of cryptocurrency, the term 'underlying' refers to the fundamental asset or technology that a particular cryptocurrency is built upon. It represents the foundation or basis of the cryptocurrency's value and functionality. For example, Bitcoin's underlying technology is the blockchain, which enables secure and decentralized transactions. The underlying asset or technology plays a crucial role in determining the potential value and utility of a cryptocurrency.
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• brendanAug 06, 2025 · 3 months ago
  When we talk about the underlying in cryptocurrency, we're essentially referring to what gives a particular cryptocurrency its value and purpose. It's like the engine that powers the cryptocurrency. Without a strong underlying asset or technology, a cryptocurrency may lack substance and struggle to gain traction in the market. So, understanding the underlying of a cryptocurrency is essential for evaluating its potential and making informed investment decisions.
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• Osama MahmoudNov 07, 2024 · a year ago
  The concept of underlying is important in the world of cryptocurrency because it helps us understand the value proposition of a particular cryptocurrency. For example, Ethereum's underlying technology is the Ethereum Virtual Machine (EVM), which allows developers to build decentralized applications (dApps) on top of the Ethereum blockchain. This underlying technology sets Ethereum apart from other cryptocurrencies and gives it unique functionality. So, when evaluating cryptocurrencies, it's crucial to consider their underlying technology and how it contributes to their value and potential.
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