Educational Byte: Why Some Cryptos Have Supply Caps - and Others Don’t
One of the problems of fiat (traditional) currencies is unlimited supplies: governments can print new bills and coins to their heart’s content, and this could increase inflation to the point of killing the currency itself. Money needs to be scarce to work, and when it’s not anymore, then it doesn’t work anymore. That’s why numerous cryptocurrencies, starting with Bitcoin, have capped or limited supplies.
Other networks, however, have their own monetary policies and even supplies designed to never run out, for various reasons. Let's learn a bit about this.
Supply Cap
A supply cap means there’s a maximum number of coins that can ever exist. Bitcoin remains the most famous example, with a hard limit of 21 million BTC written into its code. No more coins will ever exist, and even from that number, up to 20% may already be gone foreverbecause many holders no longer have access to...
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