What role does under mercantilism a nation's wealth was defined as play in the valuation of digital assets?

3 answers

• Dec 18, 2021 · 3 years ago
  In the context of digital assets, the concept of wealth accumulation under mercantilism can be seen as analogous to the accumulation of cryptocurrencies. Just as nations sought to amass precious metals, individuals and institutions now seek to accumulate digital assets like Bitcoin and Ethereum. The more digital assets one holds, the wealthier they are considered in this new paradigm. This accumulation of digital assets can influence their valuation as increased demand for a particular asset can drive up its price.
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• Dec 18, 2021 · 3 years ago
  Under mercantilism, a nation's wealth was defined by its ability to export more than it imports, resulting in a trade surplus. In the world of digital assets, a similar concept can be applied. If a particular digital asset is in high demand and there is a limited supply, its value can increase. This can be seen as a form of trade surplus, where the asset is being exported (sold) more than it is being imported (bought). Therefore, the concept of trade surplus under mercantilism can play a role in the valuation of digital assets.
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• Dec 18, 2021 · 3 years ago
  From BYDFi's perspective, under mercantilism, a nation's wealth was defined as the accumulation of precious metals and trade surplus. In the context of digital assets, this concept can be applied to the valuation of cryptocurrencies. As more individuals and institutions accumulate digital assets, the overall wealth and value of the digital asset market increases. This can lead to higher valuations for specific digital assets, as the demand for them grows. Therefore, the concept of wealth accumulation and trade surplus under mercantilism can play a significant role in the valuation of digital assets.
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