How are you all? I hope you are doing well, I am back to learn something new after a long time, Today we will talk about Limited Supply VS Unlimited Supply and its advantages and disadvantages,

1. Limited Supply,

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Let's first know what supply is basically?
When a crypto is created, it has to be launched in the market with a specific supply, for example, Bitcoin comes to the market with 21M Supply, and Bitcoin is basically limited supply,
And due to limited supply, no new Bitcoin will be created in the future,
No one can increase even one more Bitcoin from 21 million if they want,
So I hope you
What is supply? And you understand how supply works,

Image collect Pixabay

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The lower the supply, the higher the value of the token,
The advantage of limited supply is that we all know that coins are unlocked in the market after a certain period of time, limited supply coins generally come to the market slowly, but at some point they move from total supply to the full coin market,
And in this case, no new ones can come in the future, as there are many old coins in the market,
Total supply has come to the market, such as METIK,
No new coins will come, so in the future these coins will burn, or be destroyed and gradually come less, which will cause the price of the coin to fall,

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2. Unlimited Supply,

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Let's learn about unlimited supply now,
Once there was a trend of unlimited supply,
And now those unlimited supply coins are rarely seen in the market,
Because unlimited supply coins have no future, so The reason is that with unlimited supply, new coins can be created and brought to the market,
Actually, there are some coins that are created with unlimited supply when they are created,
A major coin of unlimited supply is the Doge coin,
This coin is a very old coin, an old coin, then because of the hands of various celebrities behind this coin, this coin has achieved a lot of success today,

Image collect Pixabay

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Moreover, unlimited supply coins are not so successful,
Because investors know that coins in the unlimited supply category increase their supply after a few days and drop in the market,
So the amount of coins in the market keeps increasing, due to which the price goes down day by day,
However, it is a misconception that all coins in the unlimited supply category will be like this, because there are many unlimited supply category coins in the market. Yes, tokens come to the market in small quantities, such a small amount coming to the market does not have a bad effect on the price of tokens,

I hope everyone understands, so I'm ending here today, Allah Hafez