Cryptocurrency Q&A
What is Bitcoin circulating supply?
What is Bitcoin circulating supply?
Sara
Mon Aug 05 2024
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6 answers
1755
Excuse me, could you please clarify what exactly is meant by "Bitcoin circulating supply"? I'm curious to understand if it refers to the total number of Bitcoins that are currently available for trading and use on the market, as opposed to those that are stored in wallets and not actively being transacted. Additionally, I'm interested in knowing if there's a specific method used to calculate this figure and whether it's subject to change over time.
6 answers
EthereumEmpireGuard
Wed Aug 07 2024
The concept of Circulating Supply is crucial in understanding the dynamics of cryptocurrency markets. It refers to the total number of coins or tokens that are actively traded and in circulation within the market and the general public.
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Paolo
Wed Aug 07 2024
This metric differs from the total supply of a cryptocurrency, which represents the maximum number of coins or tokens that can ever be created. When a company or project issues a new cryptocurrency, it typically decides on an initial supply and a release schedule.
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HanRiverVisionaryWave
Tue Aug 06 2024
However, not all of these coins or tokens are immediately available for trading. A portion of the total supply is often held back by the creators, either for strategic reasons or to ensure the stability of the currency.
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Martina
Tue Aug 06 2024
The circulating supply, therefore, represents the actual number of coins or tokens that are currently available for trading and use in the market. It is a dynamic figure that can change over time as more coins enter or leave circulation.
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TaekwondoMasterStrengthHonorGlory
Tue Aug 06 2024
This metric is important for investors and traders as it can affect the price and volatility of a cryptocurrency. A lower circulating supply can lead to increased demand and potentially higher prices, while a higher circulating supply may result in lower prices and reduced volatility.
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