Can you explain the concept of supply as it relates to cryptocurrencies?

1 answers

• AyethiriJul 11, 2025 · 4 months ago
  Of course! Supply is a fundamental concept in cryptocurrencies. It refers to the total number of coins or tokens that can ever be created for a particular cryptocurrency. Unlike traditional currencies, where central banks can increase the money supply by printing more money, cryptocurrencies have a fixed supply. This means that there is a predetermined limit to the number of coins or tokens that can ever exist. The supply of cryptocurrencies is often coded into the blockchain technology that powers them, ensuring that the supply cannot be changed without the consensus of the network participants. This fixed supply is seen as a way to create scarcity and potentially increase the value of cryptocurrencies over time. It also provides transparency and predictability, as anyone can verify the current supply of a cryptocurrency at any given time.
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