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Difference between Circulating supply, Total supply and Maximum supply for cryptocurrency

 To understand what is the currency supply, we can say that it means the supply of the currency, or the supply of the currency, or the number of cryptocurrency in the blockchain technology i.e.

the limit number of X number of currencies that have been identified to the market

 The number, due to the policy of the blockchain and its laws, cannot be decreased or increased.

Let’s dig deeper with a simple and easy explanation of the supply of cryptocurrency on the Blockchain.

Difference between Circulating supply, Total supply and Maximum supply

 

One of the important factors to consider before investing in any cryptocurrency, is to know the supply of coin.

Some cryptocurrencies have a finite supply, meaning that their supply is placed on a fixed number. Whereas, some cryptocurrencies have an infinite supply

This means that there is no fixed cap on the number of that coin, in either case, it is important to understand the rate of increase over time.

In most cases, the rate of currency issuance is faster in the early years and over time the rate decreases.

A simple and easy explanation of the supply of cryptocurrency on the Blockchain

coinmarketcap.com provides different types of supply for different cryptocurrencies.

Generally there are 3 types of supply i.e. Supply offered by a list of cryptocurrencies like coinmarketcap.com.

Circulating supply: The supply that is currently circulating and is the amount of cryptocurrency currently available and circulating in the market.

Total supply: The total supply is the amount of currency that is already in circulation. Not all digital currency may be in circulation at present. Generally the total supply is equal to or greater than the circulating supply.

Maximum supply: The maximum supply is the total amount of cryptocurrency that was specified at the first time it was launched. For example, Bitcoin maximum supply is limited to 21 million bitcoins.

Total supply should not be confused with maximum supply. They are completely different.

If the cryptocurrency only has a circulating supply, and does not have the total supply and the maximum supply, this means that the cryptocurrency does not have the maximum supply.

If a cryptocurrency has a current circulating supply and a total supply, but does not have a maximum supply.,

This means that the cryptocurrency does not have a maximum supply yet.

For example, Bitcoin, Litecoin and Dashcoin have a circulating supply and a maximum supply and this supply information is available.

These cryptocurrencies have a fixed limit so after this limit is reached, there will be no more new cryptocurrencies available

That is, the maximum supply will become the circulating supply. Currently, the less the number of the maximum supply, the greater the number of circulating supply.

In the case of Ethereum, Monero, etc., they only have the circulating supply and not the total supply and max supply, because their supply is infinite.

However, it is important to note that each of these cryptocurrencies have pre-determined rules on the amount of cryptocurrencies produced each year,

and therefore can be predicted (predictability is key information for decision makers).

In the case of EOS, the current circulating supply and the total supply but the max supply. This indicates that the EOS offer is infinite.

A total supply of 1 billion EOS will be available at the end of the ICO.

After that, the ICO contributors will be rewarded with the new coins for verifying the transactions.

 So there is no hard cap for EOS as well.

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