Demand and scarcity drives the entire cryptocurrency market

As for your information, having knowledge of economics also plays vital role in the cryptocurrency ecosystem and the blockchain at large. What I am about saying is that when it comes to life we all should knows that education is very important and vital. Many people will see and think that people that are educated don't know what they are doing. You should knows that if you have such mentality you should change it otherwise you will regret it at the tail end. You should knows that when it comes to life, the fact still stands that there is no knowledge that is lost. I remembered why I was in higher institution, do you know that we did economy, it was a borrowed course, you need to see how we were adamant doing it. I was reluctant doing anything that relates to it, this is simply holding to the fact that all that I was thinking about during that time is that it is a borrowed course, I don't think I needed it. Well, we all can see how it fraction is paying an important part in the cryptocurrency ecosystem and the blockchain at large. What this teaches us is that once again, there is no knowledge that is lost. Just stick and learn whatsoever thing that you are being introduced to, one day it will be important.

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The reason why I said that the study of economy is playing it part here is simply holding to the reason that I am stating above, the topic itself states it all. When you study economy you will definitely come across demand, supply and even scarcity. They are major topic and talk in the economy ecosystem. I remembered how I was taught back then that different person came up with the economy definition, at the end, only one was generally accepted and that came from Adam Smith. During his definition he said that economics can be defined as the science that studies human behaviour as a relationship between ends and scarce means which have alternative uses. I am revisiting this so that we can refreshen our brain because of the message that I am trying to pass out. I believe this will be important with you decoding this post more easily, faster and better.

Since we already knows this definition we can now move to the next stage of this post which talks about demand and scarcity and how they both drive the cryptocurrency ecosystem positively. As for your information, in a nutshell, demand simply means that there is large people having interest in something. Now when everybody wants to get hold of something it will impact it price positively. The reason why I said positively is that when there is excesses demand for something it will push that something into scarcity, when this happened it will drive the price of that thing positively. Assuming 100000 people demanded for your Ethereum token and there is 10000 in circulation, it definitely shows that there will be rise in Ethereum token since we have few in circulation and the good part is that more are demanding for it. This shows that there is scarcity in Ethereum coin as the people demanding for it are many than the amount of the coin in circulation.

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With the message that I am trying to pass above we all can see how important demand and scarcity is when you are referring to the cryptocurrency ecosystem and the blockchain at large. The moment you are seeing a cryptocurrency project doing well you should have it in mind that there is somebody buying it, when there is large buy order it will push the cryptocurrency token that you are holding into a positive height. We all are happy when we see whales buying into a cryptocurrency project. We all knows that it will do justice to that cryptocurrency coin. Well, the other part is that when there is large sell out, there is every tendency that there will be drop in the worth of such cryptocurrency coin. This is why we wanted demand and scarcity all the time, we don't want to see our investment going down the drain.

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I will end the post here, have a nice day.

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