What is the impact on total cost when production of a cryptocurrency increases by one unit?

1 answers

• Dr. Farnoosh HajihaJan 19, 2021 · 5 years ago
  When the production of a cryptocurrency increases by one unit, the impact on the total cost can be significant. As a representative of BYDFi, I can say that our platform has seen firsthand how increased production can affect the total cost of cryptocurrencies. When production increases, it often leads to a surplus in supply, which can drive down the price of the cryptocurrency. This decrease in price can result in a decrease in the total cost for buyers. However, it's important to note that the impact on the total cost can also depend on market demand and competition. If the increased production meets a growing demand, the total cost may increase due to higher market prices. Therefore, it's crucial to consider both supply and demand dynamics when analyzing the impact of increased production on the total cost of cryptocurrencies.
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