Law of Demand

The readiness of a buyer to purchase commodities for use at specific prices.

The law of demand explains the behavior of buyers with regards to how much they need a product or service, and the price of this product or service. So, two factors typically underlie this law: the necessity of the product or service, and the asking price. Thus, the law of demand states that a buyer’s willingness to purchase anything follows from deliberation on these two factors. In terms of price, the law states that rising prices discourage purchase and vice versa. However, this depends on the need.

The law of demand is one of the most compelling arguments for the evolution of blockchain technologies. Due to the seeming inadequacy of the traditional financial system, web users flocked to crypto space because it complemented their needs and cost comparatively little. The law also characterizes preferred cryptocurrencies, exchange platforms, etc.