How does the meaning of outstanding shares differ in the context of digital currencies?

3 answers

• Dec 28, 2021 · 3 years ago
  In the world of traditional stocks, outstanding shares refer to the total number of shares issued by a company that are held by shareholders. However, in the context of digital currencies, outstanding shares are not applicable. Digital currencies, such as Bitcoin or Ethereum, are decentralized and do not have shares like traditional companies. Instead, the ownership of digital currencies is represented by digital wallets and recorded on a blockchain. So, the concept of outstanding shares does not exist in the same way for digital currencies.
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• Dec 28, 2021 · 3 years ago
  When it comes to digital currencies, outstanding shares are replaced by the concept of circulating supply. Circulating supply refers to the total number of coins or tokens that are available and actively circulating in the market. It represents the portion of the total supply that is accessible to the public for trading and transactions. Unlike outstanding shares in traditional stocks, circulating supply in digital currencies can change over time due to factors such as mining rewards, token burns, or token lock-ups.
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• Dec 28, 2021 · 3 years ago
  In the context of digital currencies, outstanding shares are not relevant because digital currencies operate on a different model compared to traditional stocks. Digital currencies are decentralized and built on blockchain technology, which eliminates the need for shares and centralized ownership. Instead, digital currencies rely on consensus mechanisms, such as proof-of-work or proof-of-stake, to validate transactions and secure the network. Therefore, the concept of outstanding shares does not apply to digital currencies like Bitcoin, Ethereum, or other cryptocurrencies.
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