Understanding a cryptocurrency’s supply – how many coins percolate around an economy – is crucial for determining metrics like supply, demand and market capitalization. Rob_Stevens_ breaks down why each one matters:
, the creator of Bitcoin, controls billions of dollars worth of Bitcoin, but hasn’t touched them in over a decade. Nevertheless, these Bitcoins are still considered to be part of Bitcoin’s circulating supply.
The market cap of a coin is a very crude multiplication of all the coins in existence by the price, even if many of those coins are lost, sequestered by the FBI or owned by the deceased. One metric, known as theWhat is a total supply?that exist on the blockchain, including tokens that aren’t in public circulation.
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