Consider Max Supply When Assessing Coin Investments

Something to think about as you look into all the thousands of altcoin options out there... using supply and demand 101 consider what capped supply looks like on a supply and demand curve. The following is what BTC's supply and demand curve looks like (Current Circulating Supply=16,783,750 vs. BTC Max Supply = 21,000,000 BTC). The supply will ultimately be capped at the maximum.

If demand increase or decreases in your coin (BTC in this example), the price must change proportionately as supply can not be altered. In the case above supply is altered slightly, but at a specified and controlled rate. If supply were completely released and capped that supply curve would be vertical (ultimately bitcoin will be this once it reaches 21 million BTC).

On the other hand if supply can be altered (i.e. release/creation of additional coins = inflation) it could look something like this:

The last piece to consider, who controls the release of said coins into supply in the coin you are looking into? Is it a central body (the developers), an algorithm that meticulously controls the rate, or is it done by some other means? Why does this matter? The release of these coins/tokens into circulation could drive down the price and value of your holdings if it is not done in a controlled manner (i.e. inflation).

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