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However, cryptocurrencies also carry inherent risks. The volatility of the market means that prices can fluctuate wildly, leading to significant gains or losses in a short period. Investors are often advised to approach cryptos with caution and to only invest what they can afford to lose.
Understanding the Value of Money in a Digital Age
The question of what constitutes “value” is central to any discussion around currency and economics. In traditional economics, the value is generally derived from supply and demand dynamics. In contrast, cryptocurrencies like Bitcoin are often viewed through the lens of their scarcity and the technology underpinning them.