This conversation comes up a lot in my side of the world, how many coins is the right amount of circulating supply to hold a token or coins value where it should be held?
Please share your personal views, and we shall see what everyone else thinks, pleas drop a reason as to why, not just a number so we know what your personally referring too.
Thanks Fam.
Rev Nissan
There's no definitive answer to that...
Variety of supply yield different dollar value coins
Number of coins is an arbitrary way to measure value. We're not talking physical coins here. Each cryptocurrency is divisible into far smaller values. Think about Bitcoin. It is comprised of 100 Million Satoshi, yet we don't even use that terminology really. We still talk fractions of a Bitcoin because of it's USD value. Now, if Bitcoin one day rises to an astronomical price... say $1 Million. Then we would no longer even refer to Bitcoin directly. Instead we'd be buying a cup of coffee for 500.5 Satoshis perhaps. Yes, even Satoshis are divisible :) That's the thing, all of our cryptos can be divided into smaller and smaller values without issue
Hi Rev,
I think that the number is dependent on the use. Bitcoin has a limited supply of 21m, many of which will be mined long after we're gone and this has been effective for the first cryptocurrency, particularly when you consider the satoshi/smaller units available.
For Ripple (XRP), there are 100 billion total, with a division of 20% to the founders, 30% for development funds, and 50% to distribute towards adoption. With xrp being destroyed with each transaction (as a safeguard against certain attacks), the large number of xrp makes sense, though all 100 billion are not in circulation.
I don't think there's a hard rule on how many coins is the right amount for the value to hold because there is such diversity in the crypto space and there are many ways to artificially modify both the value and the supply, intentionally and otherwise.
I agree with another reply, it's more important that the the amount in circulation is reasonable for the use and that the unit is divisible as the price grows relative to fiat (and adoption rates).
I was wondering to.
It's a touchy subject with different views
My personal favourite amount is around 100 mill. Like Etherium or Stratis.
Easy to make the calculations for the market cap :)
Makes sense thanks for sharing
I prefer coins that don't have a crazy supply like Ripple.
sometimes coins with low supply can be amazing for investing. Like .. Zcoin :)