Crypto Curious Reader Questions: Maximum Supply
I’m not a crypto expert, just a curious person who writes about things as I learn them while working for a crypto startup. Crypto curious essays are easily digestible pieces of information that help make getting into and understanding cryptocurrency less intimidating for newcomers.
I recently published these bite sized basics about Bitcoin, blockchain, and cryptocurrency. That sparked the following questions from readers:
Why is there a maximum number of Bitcoins, and do all cryptocurrencies have a max #?
Bitcoin has a maximum of 21 million coins, because that is the number that creator Satoshi Nakamoto selected. There’s some speculation and some concrete info on exactly why he chose that specific number, but having a fixed amount is now fairly common.
Coins with a maximum supply are by nature more scarce, and may experience increased demand and value.
This is certainly the case with Bitcoin, but also to some extent for all tokens that may become more rare or hard to come by.
Many blockchains, including some of the most popular blockchains, do have a top end for the number of coins or tokens.
This includes, Binance (BNB), Cardano (ADA), and Algorand (ALGO), and many more.
However, not all cryptocurrencies have a maximum number.
Ether, or ETH on the Ethereum blockchain, for example currently has over 119 million in circulating supply and no set limit for how many ETH can be made. The so-called meme token Dogecoin is also set up for an essentially limitless supply.
The total number of any cryptocurrency doesn’t automatically determine its value, but it is important for you to understand the big picture before you invest.
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