What is the difference between total supply and max supply in the context of cryptocurrencies?

1 answers

• Nov 29, 2021 · 3 years ago
  Ah, the difference between total supply and max supply in the context of cryptocurrencies. It's a topic that often confuses people, but fear not, I'm here to shed some light on it. Total supply refers to the total number of coins or tokens that will ever exist for a particular cryptocurrency. It's like the maximum limit of how many coins or tokens can ever be in circulation. On the other hand, max supply refers to the maximum number of coins or tokens that can exist at any given time. This means that not all of the total supply may be in circulation immediately, as some coins or tokens may be locked or held by the project team or other entities. The difference between total supply and max supply can have an impact on the perceived scarcity and value of a cryptocurrency. If the total supply is significantly lower than the max supply, it can create a sense of scarcity and potentially drive up the value of the cryptocurrency. However, if the total supply is close to or equal to the max supply, it may indicate a lack of scarcity and potentially affect the perceived value of the cryptocurrency.
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