How Do Cryptocurrencies with Unlimited Supply Gain Value?

Referred to as “digital gold” Bitcoin It continues to hold the title of the most valuable cryptocurrency with the revolution it created in the financial world.

In addition to the many problems that Bitcoin solves in the field of finance, its most important feature is that its supply with 21 million units be limited! In this way, the value of Bitcoin is protected against future price changes.

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

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

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

So, unlike traditional currencies, Bitcoin supply does not increase over timeor even on the contrary, with the decrease in mining rewards supply growth slows down.

This scarcity is Bitcoin’s One of the main 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 unlimited supply cryptocurrencies is to increase usability in daily transactions, rather than being a store of value like Bitcoin.

In the world of cryptocurrencies, the coins, which have an almost unlimited supply, are not intended as an alternative to Bitcoin’s digital gold status. complement They continue to exist as cryptocurrencies.

In other words, every cryptocurrency a unique purpose and area of ​​use For this reason, Bitcoin stands out as a kind of investment tool with its limited supply, while cryptocurrencies with its unlimited supply are used for short-term daily transactions, micropayments, community events, etc. It is preferred in areas.

For example, Doge Coin, also known as the “Meme coin” or “Shit coin”, although it emerged for humorous purposes, now has a large market value and 145 billion supply was!

This diversity actually increases the richness and diversity of the cryptocurrency ecosystem. from its dynamic structure arises because of it.

So, although Bitcoin is valuable due to its limited supply, cryptocurrencies with an unlimited supply to meet different user needs continues to emerge and hold an important place in the digital economy.

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