The Monetary Properties of Cryptocurrency

The monetary properties of cryptocurrency are under mentioned:

There is a Controlled Supply

Most cryptocurrencies have a limit on the number of tokens supplied. Taking Bitcoin as an example there will be a decrease of supply over time and experts estimate that the final number of Bitcoin tokens will happen around 2140. Experts say that only 21 million Bitcoins will be the limit.

To control the supply of cryptocurrency tokens a schedule is written in the underlying code. Using this code you can approximately calculate today the monetary supply of a cryptocurrency for any given future date.

Bearer not Debt

With conventional or “fiat” money underwritten by a government, the bank account you hold is created by debt. All of the entries in your account are debts. It is really an IOU system. A cryptocurrency is not a debt.

There has been a lot of controversy over the launch of cryptocurrencies because they are a direct attack on the monetary policy of most nations. Governments or central banks cannot change cryptocurrencies. Therefore they are immune to inflation and deflation caused by the manipulation of the monetary supply.

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