What is the limited supply of Ethereum and how does it impact its value?

3 answers

• Evam KaushikMay 08, 2024 · 2 years ago
  Limited supply in Ethereum refers to the maximum number of ETH coins that will ever exist. Unlike traditional currencies, Ethereum has a fixed supply, which means that there will only be a certain number of ETH coins in circulation. This limited supply is important because it creates scarcity, which can drive up the value of Ethereum. As demand for Ethereum increases and the supply remains fixed, the price of ETH can rise. This is similar to how limited edition items or rare collectibles can command higher prices due to their scarcity.
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• Angela ThomasJun 16, 2021 · 5 years ago
  The limited supply of Ethereum is a key factor in determining its value. With a fixed supply, the value of each individual ETH coin can increase as demand rises. This is because there is a limited amount of ETH available, and if more people want to buy it, the price will go up. On the other hand, if the supply of Ethereum was unlimited, the value of each coin would likely be lower because there would be no scarcity. So, the limited supply of Ethereum plays a crucial role in its value.
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• charles manciniDec 31, 2023 · 2 years ago
  The limited supply of Ethereum is a fundamental aspect of its value proposition. As an investor, it's important to understand that Ethereum has a maximum supply of 18 million coins per year. This means that the supply of Ethereum is limited, which can have a positive impact on its value. With a fixed supply, Ethereum has the potential to become more valuable over time as demand increases. This is why many people believe that investing in Ethereum can be a profitable long-term strategy.
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