Maximum Supply refers to the predetermined total number of a cryptocurrency that will ever exist. This limit is set at the time of the cryptocurrency's creation and is a part of its underlying code.
"Bitcoin has a maximum supply of 21 million coins, meaning there will never be more than 21 million Bitcoins in existence."
For mineable cryptocurrencies, the maximum supply is particularly relevant. As new coins are mined, the total supply increases, but it can never exceed the maximum supply. Over time, the rate of new coins being mined decreases, gradually approaching the maximum supply.
"The maximum supply of Bitcoin is expected to be reached around the year 2140, as the rewards for mining decrease and the number of new Bitcoins mined approaches zero."
Understanding the maximum supply of a cryptocurrency is crucial for investment decisions. It can influence the potential scarcity of the cryptocurrency, which can in turn affect its price and value.
"A cryptocurrency with a low maximum supply might become scarce as demand increases, potentially leading to price increases."
Different cryptocurrencies have different maximum supplies. This can be a factor to consider when comparing cryptocurrencies, as it can influence their long-term supply and demand dynamics.
"While Bitcoin has a maximum supply of 21 million coins, Ethereum does not currently have a set maximum supply."
* All terms and definitions may update as the Cryptionary improves.
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