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Cryptocurrency issuance is the process of releasing new coins into circulation. Unlike traditional currencies, where issuance is controlled by central banks, in cryptocurrencies, this process is regulated by blockchain algorithms. Here are the key aspects to know:

1. Types of issuance

Fixed (deflationary)

- Example: Bitcoin (BTC).

- Features:

- Maximum supply is 21 million BTC.

- New coins are issued through mining (PoW) until 2140.

- Halving every 4 years halves the rewards for miners.

- Effect: Scarcity and protection against inflation.

Gradually decreasing

- Example: Litecoin (LTC).

- Features:

- Issuance decreases through halving (every 840,000 blocks).

- Total limit is 84 million LTC.

Unlimited (inflationary)

- Example: Dogecoin (DOGE).

- Features:

- 5 billion DOGE are issued annually.

- Inflation is gradually decreasing, but theoretically, the supply is infinite.

Algorithmically managed

- Example: Ethereum (ETH).

- Features:

- After the transition to PoS (2022), issuance depends on staking activity.

- EIP-1559 introduced fee burning, which may make ETH deflationary.

2. How does issuance occur?

- Proof of Work (PoW): Miners receive new coins for creating blocks (Bitcoin, Litecoin).

- Proof of Stake (PoS): Validators earn rewards for staking (Ethereum, Cardano).

- Stablecoins:

- Fiat-backed (USDT, USDC): Issuance is tied to reserves in banks.

- Algorithmic (DAI): Issuance depends on collateral in cryptocurrency.

3. The impact of issuance on the economy of cryptocurrencies

- Inflation: High issuance (like Dogecoin) reduces the value of the coin.

- Deflation: Limited issuance (Bitcoin) increases value but may slow transactions.

- Stability: Stablecoins maintain a fixed rate through controlled issuance.

4. Examples of risks

- Centralization: If developers can change issuance rules (as in Ripple), it undermines trust.

- Halving: Reducing rewards for miners (Bitcoin) can lead to a decrease in hash rate.

- Speculation: High issuance of meme coins (Shiba Inu) creates bubbles.

5. Why is this important for investors?

- Assessing potential: Cryptocurrencies with fixed issuance (BTC) are considered 'digital gold.'

- Diversification: Altcoins with unique models (ETH, ADA) can yield long-term income.

- Monitoring: Changes in issuance (e.g., Ethereum's transition to PoS) affect the price.

Investment tips

1. Study the White Paper: Ensure that the project's issuance is transparent and logical.

2. Keep an eye on updates: For example, Ethereum's transition to PoS changed the economics of ETH.

3. Avoid 'hyperinflationary' assets: Coins with unlimited issuance are risky.

Conclusion:

Issuance is a key factor determining the value and stability of cryptocurrency. Fixed models (Bitcoin) are suitable for conservative investors, while algorithmic models (Ethereum) are for those willing to take risks. Always analyze how the issuance of new coins affects the long-term prospects of the asset.