In the vast and ever-growing world of cryptocurrencies, of course there are lots of blockchain projects that have sprung up with different goals and functions. The blockchain project is interesting to watch because it is one of the signs of massive industrial development. What are some blockchain projects worth knowing about?

At the beginning of the launch of Bitcoin, Satoshi Nakamoto had designed an algorithm for miners that made Bitcoin have a limited supply of 21 million Bitcoins.



Several years later, in 2014, Ethereum appeared with the same validation method, namely mining (before The Merge) but without a limit on the amount of supply.

So there are two types of crypto based on supply, namely: Limited Supply and Unlimited Supply. crypto with limited supply means that crypto has a limit on the amount of supply while crypto with unlimited supply does not have a limit on the amount of supply.

What is Limited Supply in Crypto?

As already explained, crypto with limited supply means that there is a limit to the total supply of the crypto. For example, Bitcoin has a total supply of 21 million Bitcoin, which means Bitcoin will no longer be printed if it reaches a total of 21 million Bitcoin.

There are reasons why crypto has a limited supply, namely:

Maintain scarcity

In contrast to the fiat money system that we know today, the government through the central bank can freely issue new money (printing money) according to circumstances because there is no limit to the supply of fiat money.


With more supply circulating, it can cause a depreciation of the price of money itself. Satoshi Nakamoto, in creating Bitcoin, took this into account and designed an algorithm so that Bitcoin has a limited supply so that scarcity is maintained so that its value can appreciate over time.


Running Algorithms

Some cryptos run algorithms that require that crypto to be limited in supply. For example Bitcoin, the algorithm that is run is cutting reward miners known as bitcoin halving which if written in a mathematical equation will form a logistic equation.

This logistic equation limits something at a certain value. Therefore, this value limit is 21 million so this is why Bitcoin has a supply limit of 21 million Bitcoins.