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General TradingM

Monetary Premium

The additional value an asset commands above its intrinsic or utility value because it is widely used or perceived as money or a store of value. Bitcoin is often cited as having a significant monetary premium because its market price far exceeds what its utility as a payment network alone would justify.

Example

Gold's monetary premium means it trades far above its industrial value, and Bitcoin advocates argue BTC is developing a similar premium as it gains acceptance as digital gold.