**🚀 Crypto Demand & Supply Simplified
**Why do crypto prices move?** It’s all about **demand** (how many want it) vs. **supply** (how much exists). Let’s break it down with real examples!
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### **📈 DEMAND = When People WANT a Crypto**
**Demand goes up when:**
- Big companies accept it (like Tesla with Bitcoin).
- Celebrities/influencers hype it (Elon & Dogecoin).
- Fear of Missing Out (FOMO) kicks in (bull runs).
**Example:**
Bitcoin’s **2020 halving** cut new supply in half, but demand kept growing → Price exploded from **$8K to $64K** in 2021!
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### **💰 SUPPLY = How Much Exists**
- **Fixed supply (scarce):** Bitcoin (only 21M ever).
- **Infinite supply (risky):** Dogecoin (no max cap).
- **Burning (reducing supply):** Ethereum burns fees → less ETH over time.
**Example:**
Ethereum’s **EIP-1559 upgrade** burned **4M+ ETH ($10B+)** → Less supply = higher prices!
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### **🎯 What Happens When Demand & Supply Change?**
1️⃣ **High Demand + Low Supply = Price 🚀** (Bitcoin halving).
2️⃣ **Low Demand + High Supply = Price 📉** (Dead meme coins).
3️⃣ **Stable Both = Price Steady** (Stablecoins like USDT).
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### **💡 The Bottom Line:**
- **Scarce + useful crypto = Long-term value (Bitcoin, Ethereum).**
- **Unlimited supply + no utility = Pump & dump (most meme coins).**
