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Dynamic IP address is given by dynamic host configuration protocol (DHCP) and it is assigned on need basis when a PC is connected to network.
I would like to point out some of the advantages when dynamic IP is used:
1. Dynamic IP addresses are reuseable so it allows many more PCs to use internet or other network.
2. Dynamic IP address needs no configuration when you move your PC to other subnetwork.
3.Dynamic IP address offers better security since your IP address gets changed everytime when you connect to the network.
4. It's a boon for network adminstrator as he need not assign a unique IP address to each computer due to the constant update of dynamic IP addresses by the software.
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