What is the definition of supply in the context of cryptocurrencies?
SatriaraMay 28, 2021 · 4 years ago3 answers
Can you explain what supply means in the context of cryptocurrencies? How is it different from traditional supply in the financial world?
3 answers
- Redwan Ahmed KhanSep 09, 2022 · 3 years agoIn the context of cryptocurrencies, supply refers to the total amount of coins or tokens that will ever exist for a particular cryptocurrency. Unlike traditional supply in the financial world, which can be manipulated by central banks or governments, the supply of cryptocurrencies is typically predetermined and cannot be changed. This fixed supply is often seen as a key feature of cryptocurrencies, as it provides transparency and prevents inflationary practices.
- Majd SassiAug 14, 2020 · 5 years agoSupply in the context of cryptocurrencies is the total number of coins or tokens that are available for use. It is different from traditional supply in the financial world because it is not controlled by any central authority. Instead, the supply of cryptocurrencies is determined by the underlying technology, such as blockchain, and the rules set by the cryptocurrency's protocol. This decentralized nature of supply is one of the reasons why cryptocurrencies are often considered to be more transparent and resistant to censorship.
- MaldiniCalvoMay 30, 2025 · 3 months agoSupply in the context of cryptocurrencies is the total amount of coins or tokens that can ever be created. It is different from traditional supply in the financial world because it is not subject to the same level of control or manipulation. For example, central banks can print more money to increase the supply of traditional currencies, but cryptocurrencies have a fixed supply that cannot be changed. This fixed supply is often seen as a way to ensure scarcity and value in the cryptocurrency market.
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