What are the advantages of deflationary crypto assets?
Asked 2 years ago
Deflationary crypto assets is the new buzzword around my business. What are the advantages of deflationary crypto assets?
Sheldon Owen
Saturday, July 23, 2022
There are multiple benefits investors and developers get from deflationary tokens. Above all, deflationary cryptocurrencies strive to solve the significant problem of fiat money – inflation. Below are the three primary advantages of deflationary tokens:
Increase in a token's value: The principle law of supply and demand dictates that an increase in the supply of assets results in a decrease in demand. Deflationary tokens aim to minimize their circulating supply, increasing their scarcity and demand.
Generating profits: During the 2022 bull run, deflationary tokens generated more profits than their inflationary counterparts. The deflationary aspect directly raises investor interest, which causes high demand and better price discovery.
Eliminating extra coins from the market: Unsold coins in circulation damage the project's progress. Deflationary methods help projects eliminate them from circulation and unclog the market.
Please follow our Community Guidelines
Related Posts
David Akilo
Can You Stake With Akropolis?
David Akilo
Are NFTs a Good Investment?
Filip Dimkovski
DeFi Pulse Index: Intro, Pros & Cons, and How to Buy
Josiah Makori
Key Insights to Maximizing Staking With Lido
Thasni Maya
Can You Get Lido DAO Tokens?
Thasni Maya
How Can I Find New DAO Projects?
Can't find what you're looking for?