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11/19/2024 4:11:34 PM (GMT+1)

Why do cryptocurrencies have a limited supply?

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The limited supply of cryptocurrencies is an important feature that distinguishes them from traditional fiat currencies. Unlike government-issued money, which can be printed without restrictions, cryptocurrencies such as Bitcoin have a predetermined number of coins that will never be exceeded. This limitation creates scarcity, which drives up prices as the demand for digital assets grows while the supply remains fixed. Additionally, this model helps prevent inflation and protects users' purchasing power.


This material was prepared by Khachatur Davtyan, developed and translated by artificial intelligence.



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