# How Cryptocurrency Supply Works

in Tron Fan Club2 months ago

# Assalamu Alaikum

How are you? By Allah's grace, I'm doing very well. The topic I will be sharing today is the supply of coins. First let's talk about the max supply, suppose the max supply of A coin is 3 thousand coins (I will call the coin A coin for ease of understanding).

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Max supply is, suppose a company has created A coin and has a supply of A coin of 3 thousand, now the company wants to increase the supply of coins but they can't even if they want to. This is because if the company has set a max supply of coins, then the company cannot increase the amount of coins later but the condition is that the max supply of coins has been given. That means A coin supply company cannot increase more than 3000 but they can reduce their coin amount if they want. Now we will talk about the total supply, suppose the supply of A coin is 3 thousand, the company wants to not release 3 thousand coins into the market, they will keep a small number of coins with them, what the company will do now is the company 2500 coins inside the company 3 thousand supply. Will leave the market and keep the remaining 500 coins for themselves. So the total supply is 2500 coins, which are released in the market and the remaining 500 coins are called circulating supply. Total Supply follows these rules. Now let's talk about circulating supply.

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Circulating supply is similar to total supply but there is a difference between total supply and circulating supply. The number of tradable coins in the crypto market, that is, these coins that can be traded, or the number of tradable coins in the market, are collectively called circulating supply. Suppose Max supply of A coin is 3000, total supply is 2500 and circulating supply is 500. Basically, the number of coins available in the market to be traded, these together are called supply. Now the supply that we will talk about is unlimited supply, unlimited supply is much more dangerous. The way unlimited supply works, think that the supply of A coin is 2500 and if the max supply of coins is not given, the company can increase their number of coins at any time. If they want to increase from 3000 coins to 5 thousand, 6 thousand to 8 thousand coins they can increase.

Today's discussion concludes here. I hope you've found it interesting. Please share your thoughts on today's topic. Prayers for everyone. May everyone be well. Amen.

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Upvoted! Thank you for supporting witness @jswit.

I didn't have much experience about Crypto Currency Supply, but now I have a good idea, thanks a lot.

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