
Answer-first summary for fast verification
Answer: Increased market adoption
**Explanation:** Option A is correct because, in practice, the prices (or returns) of cryptocurrencies like Bitcoin are primarily influenced by factors such as market adoption, network effects, technological advancements, regulatory developments, and overall market risk appetite. These elements collectively drive demand and valuation. Option B is incorrect because Bitcoin and other cryptocurrencies do not generate underlying cash flows. Their value is derived solely from asset appreciation and speculative demand. Option C is incorrect because Bitcoin's performance since its inception in 2009 has been marked by high returns, high volatility, and low correlations with traditional asset classes. While correlations may be rising, they have not yet reached a consistently high level, nor is such a correlation necessarily desirable for digital assets.
Author: LeetQuiz Editorial Team
Ultimate access to all questions.
No comments yet.