In the vast world of cryptocurrencies, many pose a fundamental question:
Are the number of cryptocurrencies unlimited? Or is there a cap on what can be introduced into the market?
To answer this question, we must first differentiate between the number of cryptocurrencies themselves (like Bitcoin, Ethereum, etc.) and the number of units available for each currency.
1. Is there a limited number of cryptocurrencies?
The answer: No, the cryptocurrency market does not have a clear maximum for the number of projects and new currencies.
Almost every day, new cryptocurrencies appear, some with technical and economic goals, while others are just attempts to attract attention or even deceive investors.
As of today, there are over 25,000 cryptocurrencies registered on sites like CoinMarketCap and CoinGecko.
And there is no central authority controlling who launches a new currency; the technology is open to everyone.
So, in terms of the number of different cryptocurrencies... the market is "unlimited."
2. Does each cryptocurrency have a specific quantity?
Here the picture becomes clearer. Most cryptocurrencies have a cap or maximum number of units that can be produced:
Bitcoin: contains only 21 million units, and no more will be produced. This gives it a scarcity similar to gold.
Litecoin: its cap is 84 million units.
Ethereum: does not have a fixed cap, but is subject to ongoing policy adjustments in its production and burning mechanism.
This shows that each currency has a different policy, some are limited, while others are unlimited.
3. What is the importance of these limits?
Having a cap for the currency means:
Increasing scarcity over time
Reducing the risk of inflation
Encouraging investors to hold it
While currencies that do not have a clear cap may face the risk of losing value if large quantities are produced without oversight.
Summary:
The cryptocurrency market is continuously evolving, and there is no limit to the number of new currencies that can be launched.
However, each cryptocurrency has its own policies regarding the maximum quantity available.
When investing, don't just settle for the price or the name; ask yourself:
"Is this currency really scarce? Or is its production unlimited?"
For scarcity creates value, and the market does not forgive those who do not understand its rules.
