Why is the hbar supply limited and how does it contribute to the scarcity of the cryptocurrency?

6 answers

• Nov 27, 2021 · 3 years ago
  The supply of hbar, the native cryptocurrency of Hedera Hashgraph, is limited to maintain its scarcity and value. The total supply of hbar is predetermined and cannot be increased beyond the set limit. This limited supply creates a sense of scarcity, as there will only ever be a certain number of hbar in circulation. Scarcity is a fundamental economic principle that drives the value of cryptocurrencies. With a limited supply, hbar becomes more desirable, leading to potential price appreciation.
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• Nov 27, 2021 · 3 years ago
  The limited supply of hbar is a deliberate design choice to ensure the long-term stability and value of the cryptocurrency. By capping the supply, the creators of hbar aim to prevent inflation and maintain a controlled market. This scarcity also encourages users to hold onto their hbar rather than sell or trade them, further reducing the available supply in the market. As a result, scarcity contributes to the potential for price growth and investment opportunities for hbar holders.
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• Nov 27, 2021 · 3 years ago
  Hbar's limited supply is an important aspect of its value proposition. Unlike traditional fiat currencies that can be printed at will, hbar's supply is fixed and cannot be manipulated by any central authority. This limited supply ensures that hbar remains a deflationary asset, meaning its value has the potential to increase over time. The scarcity of hbar also creates a sense of exclusivity and rarity, making it more appealing to investors and collectors alike. It's important to note that the limited supply of hbar is not unique to BYDFi, but is a characteristic shared by many cryptocurrencies.
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• Nov 27, 2021 · 3 years ago
  The scarcity of hbar is a result of its limited supply and high demand. As more people become interested in hbar and its potential, the demand for the cryptocurrency increases. However, since the supply is fixed, the increase in demand leads to a scarcity of available hbar in the market. This scarcity can drive up the price of hbar, making it a valuable asset for investors. It's worth mentioning that the scarcity of hbar is not a negative aspect, but rather a feature that contributes to its value and attractiveness as a cryptocurrency.
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• Nov 27, 2021 · 3 years ago
  BYDFi recognizes the importance of hbar's limited supply in contributing to its scarcity and value. The controlled supply of hbar ensures that it remains a valuable asset for investors and users. By maintaining a limited supply, BYDFi aims to create a sustainable and robust ecosystem for hbar, where scarcity drives demand and potential price appreciation. It's important to understand that the scarcity of hbar is not a result of any manipulation or artificial scarcity created by BYDFi, but rather a fundamental characteristic of the cryptocurrency.
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• Nov 27, 2021 · 3 years ago
  The limited supply of hbar is a key factor in its scarcity and value. With a fixed supply, the demand for hbar can outpace the available supply, leading to a scarcity of the cryptocurrency. This scarcity can drive up the price of hbar, making it an attractive investment opportunity for those looking to benefit from potential price appreciation. It's important to note that the scarcity of hbar is not a flaw, but rather a deliberate design choice to create a valuable and sought-after cryptocurrency.
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