Circulating Supply Vs. Total Supply: Key Differences

A significant difference between circulating delivery and complete delivery: unpacking cryptographic landscape

In the constantly evolving world of cryptocurrency, understanding of basic differences between the two key indicators may be a breakthrough for investors, traders and enthusiasts. At the root, it is necessary to understand how the circulating supply and total supply are calculated, because they play a key role in shaping the values ​​and dynamics of cryptocurrencies.

What is circulation supply?

The circulating delivery refers to the total number of coins or tokens that are available for use by users, traders and investors. It represents the amount of digital assets that can be exchanged, bought, sold or traded without removal from circulation. In other words, this is the amount of cryptocurrency in the flow.

To calculate the circulating delivery, you must know both:

• Total supply (maximum possible number of coins)

• Current circulating power supply (currently available quantity)

What is total delivery?

Total delivery is an absolute maximum possible number of coins or tokens that cryptocurrency can maintain at any time. It represents the final limit of a given cryptocurrency that cannot be crossed.

To calculate the total supply, you must know both:

• Maximum possible total supply (the largest possible)

• Current circulating power supply (currently available quantity)

Key differences:

Although this may seem simple, understanding the difference between the supply supply and total supply may have a significant impact on investment decisions.

Here are the key differences:

* Restrictions: Circulation supply is limited by market conditions, regulatory requirements and even technical restrictions. On the other hand, the total supply reflects an absolute limit that cannot be exceeded.

* Inflation pressure: With the increase in supply of coins or increased demand, the total supply remains constant. However, the total supply may decrease if new coins are reduced or withdrawn from the circulation.

* Market variability: Circulating delivery may change quickly due to market conditions and changes in investor moods. However, the total supply is more stable because it is an absolute border that cannot be changed.

Examples of the real world:

To illustrate the difference between circulating delivery and total supply, let’s consider several examples:

* Bitcoin: The maximum possible number of bitcoins (22 million) is greater than the current circulating supply (about 18.9 million). This means that there is still room for growth, because more coins are extracted or withdrawn.

* Ethereum:

While the total supply (about 137 billion) exceeds the current supply of the circulating (about 70.7 billion), it should be noted that the total supply is not limited by market conditions, while the circulating supply may change quickly.

Application:

Understanding the difference between circulating and total supply is crucial for making conscious decisions in the world of cryptocurrency. By grabbing these key concepts, you will be better prepared to move around a constantly changing landscape and make intelligent investment choices.

Regardless of whether you are an experienced investor or are just starting, it is important to be up to date with the latest achievements in this rapidly developing field. Keep an eye on market trends, regulatory changes and technological progress to maximize the return and minimize the risk.

Additional resources:

For more information on cryptocurrency markets and their dynamics, consider studying reputable sources, such as:

• CoINDesk

• CoINDesk

• Cryptozlat

• Block

By remaining informed and current about the latest achievements in the world of cryptocurrency, you will be better prepared to move around this complex landscape.