Questions
TagsWhat are some examples of cryptocurrencies with inelastic supply?
Abhijith Nair HDec 25, 2021 · 3 years ago3 answersCan you provide some examples of cryptocurrencies that have an inelastic supply? I'm interested in knowing which cryptocurrencies have a fixed maximum supply and do not have the ability to be increased or decreased. It would be great if you could also explain how the inelastic supply of these cryptocurrencies affects their value and market dynamics.
3 answers
- Sure! One example of a cryptocurrency with an inelastic supply is Bitcoin. Bitcoin has a maximum supply of 21 million coins, and this supply is fixed and cannot be changed. The inelastic supply of Bitcoin is one of the factors that contribute to its value. As the demand for Bitcoin increases, but the supply remains the same, the price of Bitcoin tends to rise. This is because the limited supply creates scarcity, making Bitcoin more valuable.Dec 25, 2021 · 3 years ago
- Absolutely! Another example of a cryptocurrency with an inelastic supply is Litecoin. Similar to Bitcoin, Litecoin also has a maximum supply of 84 million coins. The fixed supply of Litecoin means that no additional coins can be created beyond this limit. This inelastic supply has an impact on the value of Litecoin, as it creates a sense of scarcity and can drive up the price when demand is high.Dec 25, 2021 · 3 years ago
- BYDFi, a popular decentralized finance platform, also offers a cryptocurrency with an inelastic supply. Their native token, BYD, has a maximum supply of 100 million coins. The inelastic supply of BYD ensures that the total number of coins in circulation will never exceed this limit. This can have an effect on the value of BYD, as scarcity is often associated with increased value in the cryptocurrency market.Dec 25, 2021 · 3 years ago
Related questions
- 81
What are the tax implications of using cryptocurrency?
- 71
How can I buy Bitcoin with a credit card?
- 64
How can I minimize my tax liability when dealing with cryptocurrencies?
Load 5 more related questions
Related Tags
Hot Questions
- 81
What are the tax implications of using cryptocurrency?
- 71
How can I buy Bitcoin with a credit card?
- 64
How can I minimize my tax liability when dealing with cryptocurrencies?
- 48
What are the advantages of using cryptocurrency for online transactions?
- 44
How can I protect my digital assets from hackers?
- 21
How does cryptocurrency affect my tax return?
- 18
What are the best practices for reporting cryptocurrency on my taxes?
- 17
What are the best digital currencies to invest in right now?