Max Supply

Understanding Max Supply

Max Supply is the term used to describe the estimated maximum quantity of coins that will ever be in circulation for a specific cryptocurrency.

Once the maximum supply is reached, no additional coins or tokens will be generated or mined.

Most cryptocurrencies have a limit on their maximum supply, which is determined by the protocols that govern each digital asset.

For instance, Bitcoin has a fixed maximum supply of 21 million coins.

However, not all cryptocurrencies have a predetermined fixed supply, such as Ether.

It’s important to understand that max supply is different from total supply. Max supply is calculated by combining the mined coins with those that are yet to be mined.

In contrast, total supply is calculated by subtracting the lost coins from the mined ones.

Max Supply

Understanding Max Supply

Max Supply is the term used to describe the estimated maximum quantity of coins that will ever be in circulation for a specific cryptocurrency.

Once the maximum supply is reached, no additional coins or tokens will be generated or mined.

Most cryptocurrencies have a limit on their maximum supply, which is determined by the protocols that govern each digital asset.

For instance, Bitcoin has a fixed maximum supply of 21 million coins.

However, not all cryptocurrencies have a predetermined fixed supply, such as Ether.

It’s important to understand that max supply is different from total supply. Max supply is calculated by combining the mined coins with those that are yet to be mined.

In contrast, total supply is calculated by subtracting the lost coins from the mined ones.

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