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11/15/2024 4:22:55 PM (GMT+1)

How does cryptocurrency maintain its value?

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The value of cryptocurrency is determined by a number of factors, such as the limited supply, market demand, and the technological features of the blockchain. Unlike traditional currencies, cryptocurrencies often have a limited issuance, which makes them a hedge against inflation. For example, Bitcoin, with its fixed number of coins, limits the possibility of their creation, preventing devaluation. Another important element is decentralization: the absence of control by government authorities increases the level of trust among users. The innovative blockchain technology also plays an important role, ensuring transparency and security of transactions.


This material was prepared by Khachatur Davtyan, developed and translated by artificial intelligence.



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