Supply in the World of Crypto
Understanding this is a fundamental aspect of grasping the world of coins.
In the world of cryptocurrency, "supply" refers to the available amount of any coin or token. It has three types:
1. Circulating Supply: The coins that are currently in circulation in the market.
2. Total Supply: All the coins that have been created so far.
3. Max Supply: The limit beyond which no more coins will ever be created.
For example, the max supply of Bitcoin is 21 million. Supply plays a crucial role in determining the price of a cryptocurrency. Limited supply and high demand can drive up the price. Investors often look at supply to estimate how much the price of a cryptocurrency might increase in the future.
