What is the difference between the total supply and circulating supply of Litecoin?

5 answers

• Dec 26, 2021 · 3 years ago
  The total supply of Litecoin refers to the maximum number of Litecoins that will ever exist. It is a fixed number, which is 84 million Litecoins. This limit ensures that there will never be more than 84 million Litecoins in circulation. On the other hand, the circulating supply of Litecoin represents the actual number of Litecoins available in the market at any given time. It includes the Litecoins that have been mined and are actively being traded. The circulating supply is constantly changing as new Litecoins are mined and added to the market, and as existing Litecoins are bought and sold.
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• Dec 26, 2021 · 3 years ago
  Think of the total supply of Litecoin as the theoretical limit, while the circulating supply is the practical reality. The total supply sets the maximum number of Litecoins that can ever exist, while the circulating supply represents the Litecoins that are actively circulating in the market. The circulating supply is a more accurate measure of the current availability and liquidity of Litecoin. It is important to note that the circulating supply can never exceed the total supply, but it can be lower if some Litecoins are lost or permanently taken out of circulation.
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• Dec 26, 2021 · 3 years ago
  The total supply and circulating supply of Litecoin are important metrics for investors and traders. The total supply gives an idea of the scarcity and potential future value of Litecoin, as there will never be more than 84 million Litecoins. The circulating supply, on the other hand, provides insights into the current market dynamics and liquidity of Litecoin. It is used to calculate market capitalization and other key performance indicators. It's worth mentioning that BYDFi, a leading cryptocurrency exchange, provides real-time data on the circulating supply of Litecoin and other cryptocurrencies, allowing traders to make informed decisions.
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• Dec 26, 2021 · 3 years ago
  The difference between the total supply and circulating supply of Litecoin is similar to the concept of shares in a company. The total supply is like the total number of shares that can ever be issued, while the circulating supply is the number of shares that are actively being traded in the market. Just like the value of a company's shares can be influenced by the number of shares available for trading, the value of Litecoin can be affected by its circulating supply. A lower circulating supply may create scarcity and drive up the price, while a higher circulating supply may lead to more liquidity and lower prices.
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• Dec 26, 2021 · 3 years ago
  When it comes to the total supply and circulating supply of Litecoin, it's important to consider the impact of mining rewards. As Litecoins are mined, new coins are added to the circulating supply. However, the rate at which Litecoins are mined decreases over time, following a predetermined schedule. This means that the rate of increase in the circulating supply gradually slows down, leading to a decreasing inflation rate. Ultimately, the total supply will be reached, and no new Litecoins will be created through mining. At that point, the circulating supply will stabilize and only change as Litecoins are bought and sold in the market.
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