What are the differences between fixed supply and floating supply cryptocurrencies?

3 answers

• Feb 18, 2022 · 3 years ago
  Fixed supply cryptocurrencies have a predetermined maximum number of coins that will ever be created. This means that the supply is limited and cannot be increased. On the other hand, floating supply cryptocurrencies do not have a predetermined maximum supply and can increase or decrease over time based on various factors such as mining rewards, token burns, or token minting events. The main difference between the two is the level of scarcity and inflationary pressure. Fixed supply cryptocurrencies tend to be more scarce and can potentially increase in value due to limited supply, while floating supply cryptocurrencies may face inflationary pressure if the supply increases faster than demand.
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• Feb 18, 2022 · 3 years ago
  Alright, so here's the deal. Fixed supply cryptocurrencies are like a limited edition collectible item. There's only a certain number of them in existence, and once they're all gone, that's it. No more will ever be created. It's like having a rare Pokémon card that only a few lucky people own. On the other hand, floating supply cryptocurrencies are more like regular currency. The supply can change over time, just like how the government can print more money. This means that the value of floating supply cryptocurrencies can be influenced by factors like inflation or deflation. So, if you're looking for something rare and potentially valuable, go for fixed supply. But if you prefer something more stable and flexible, floating supply might be your thing.
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• Feb 18, 2022 · 3 years ago
  In the world of cryptocurrencies, fixed supply refers to coins or tokens that have a predetermined maximum supply. This means that there will only ever be a certain number of these coins or tokens in existence. On the other hand, floating supply cryptocurrencies do not have a set maximum supply and can increase or decrease over time. The difference between the two lies in their inflationary or deflationary nature. Fixed supply cryptocurrencies tend to be deflationary, meaning that as demand increases, the value of the coins or tokens can potentially increase due to limited supply. Floating supply cryptocurrencies, on the other hand, can be inflationary if the supply increases faster than demand. This means that the value of these cryptocurrencies may be subject to more volatility.
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