Cryptocurrency Q&A
How does circulating supply go down?
How does circulating supply go down?
BitcoinBaroness
Tue Oct 29 2024
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7 answers
1617
I'm wondering about the mechanisms that cause the circulating supply of a cryptocurrency or any other asset to decrease. What factors or events lead to a reduction in the number of units available in the market?
7 answers
Carlo
Thu Oct 31 2024
One such situation is coin burn, an event where some coins are permanently removed from circulation.
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DreamlitGlory
Thu Oct 31 2024
When more tokens or coins are mined or introduced into the market, the overall supply increases.
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DongdaemunTrendsetter
Thu Oct 31 2024
Mining involves the use of computational power to solve complex algorithms, rewarding successful miners with new coins.
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BlockchainVisionary
Thu Oct 31 2024
Similarly, the release of new coins by a project or company also contributes to an increase in supply.
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SophieJones
Thu Oct 31 2024
The concept of supply plays a crucial role in the law of supply and demand.
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