TechFlow news: Bitwise has posted on X its chief information officer's weekly memo for investment professionals, stating that Ethereum's Dencun upgrade will create a "zero-price effect." In economics, the "zero-price effect" refers to the phenomenon where demand for many goods increases exponentially when their price drops to zero.
The memo explains there are several reasons behind this:
1. Individuals don't need to conduct complex cost-benefit analyses or compare with other alternatives.
2. If the price is zero, users face no loss.
3. Ease of use
The memo adds: "Regardless, I know this effect is real for me, and I suspect it is for you too. It will change the growth trajectory of Ethereum-based applications."
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