Who controls the supply of cryptocurrency?

5 answers

• Dec 30, 2021 · 3 years ago
  The supply of cryptocurrencies like Bitcoin and Ethereum is not controlled by any central authority or government. Instead, it is regulated by a decentralized network of computers known as miners. These miners use powerful computers to solve complex mathematical problems, which in turn validates and secures transactions on the blockchain. As a reward for their work, miners are given newly created coins, thus controlling the supply. This process is known as mining and ensures that the supply of cryptocurrencies remains decentralized and transparent.
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• Dec 30, 2021 · 3 years ago
  No one controls the supply of cryptocurrencies like Bitcoin and Ethereum. That's the beauty of it! Unlike traditional fiat currencies, which can be manipulated by central banks, cryptocurrencies operate on a decentralized network. The supply is determined by the underlying code and the consensus of the network participants. This means that no single entity can arbitrarily create more coins or manipulate the supply for their own benefit. It's a truly democratic and transparent system.
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• Dec 30, 2021 · 3 years ago
  When it comes to the supply of cryptocurrencies, it's important to understand that each cryptocurrency has its own unique rules and mechanisms. For example, Bitcoin has a maximum supply of 21 million coins, and this limit is hardcoded into its protocol. Ethereum, on the other hand, does not have a hard cap on its supply, but it does have a mechanism called 'EIP-1559' that aims to burn a portion of transaction fees, effectively reducing the supply over time. So, while no one entity controls the supply, the rules and mechanisms of each cryptocurrency play a significant role in determining its supply dynamics.
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• Dec 30, 2021 · 3 years ago
  At BYDFi, we believe in the power of decentralized finance and the importance of community-driven projects. When it comes to the supply of cryptocurrencies, it is not controlled by any single entity or organization. Instead, it is governed by the consensus of the network participants. This ensures that the supply remains fair and transparent, without any centralized authority having the power to manipulate it. We are committed to supporting the growth and development of the decentralized finance ecosystem, and we believe that a decentralized supply is a key aspect of its success.
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• Dec 30, 2021 · 3 years ago
  The supply of cryptocurrencies is not controlled by any specific exchange or platform. It is determined by the underlying technology and the consensus of the network participants. While exchanges like Binance play a crucial role in facilitating the trading of cryptocurrencies, they do not have the power to control or manipulate the supply. The supply dynamics of cryptocurrencies are governed by factors such as mining rewards, halving events, and the rules embedded in their respective protocols. It's important to choose a reputable and trustworthy exchange for trading cryptocurrencies, but it's equally important to understand that the supply is not influenced by any single exchange.
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