Also called ‘digital gold’ Bitcoin It continues to hold the title of the most valuable cryptocurrency thanks to the revolution it has created in the financial world.

Besides the many problems that Bitcoin solves in the financial field, its most important feature is that its supply exists with 21 million units be limited! This way the value of Bitcoin is protected from future price changes.

So if a limited supply makes a cryptocurrency valuable, why are these new cryptocurrencies being launched with unlimited supply?

In fact, the answer to this question in its simplest form is: in the diversity of the cryptocurrency ecosystem and it lies in the various applications of these coins.

Let’s take a closer look at the limited supply issue. Bitcoin’s limited supply makes it a digital currency “scarce resource” it becomes.

So, unlike traditional currencies, Bitcoin the supply does not increase over timeor even the opposite, with the decrease of mining rewards supply growth is slowing.

This scarcity is of Bitcoin One of the most important factors that increase the value is one because people believe that since Bitcoin’s supply is limited, its value will increase as demand increases.

The main purpose of the unlimited supply of cryptocurrencies is to increase usability in everyday transactions, rather than being a store of value like Bitcoin.

Coins that are virtually unlimitedly available in the cryptocurrency world are not sought after as an alternative to Bitcoin’s digital gold status. supplement They continue to exist as cryptocurrencies.

In other words, any cryptocurrency a unique purpose and area of ​​application For this reason, Bitcoin stands out as a kind of investment instrument with its limited supply, while cryptocurrencies with its unlimited supply are used for everyday short-term transactions, micropayments, community events, etc. In areas it is preferred.

Doge Coin, also known as ‘Meme Coin’ or ‘Shit Coin’, although it was created for humorous purposes, now has a huge market value and 145 billion supply there is!

This diversity actually increases the richness and diversity of the cryptocurrency ecosystem. of its dynamic structure this is caused by this.

So while Bitcoin is valuable because of its limited supply, cryptocurrencies with unlimited supply to meet different user needs continues to emerge and occupy an important place in the digital economy.

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