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Author Topic: Circulating supply matters to you?  (Read 1045 times)
Abiky
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August 20, 2023, 05:51:11 PM
 #161

Total supply finite or infinite do make a difference. Bitcoin for example has a finite deflationary supply and that augments it's price in the long run. We have coins with infinite supply too and they often perform poorly as compared to those with limited supply. Of course the team and their project's development makes a difference too and these are equally important points to consider when making a complete decision of investing or not.

Overall supply and inflation are important factors to count in the decision making process of investment.

There's small inflation, and then, there's too much inflation. I'd choose my coins wisely, as "not all that glitters is gold". There are so many coins with a huge supply that could end up being worthless in the long run. But that's not always the case, especially if the coin has active development and innovation. Real use cases is what matters above all else.

Consider how Dogecoin is still worth something even though there are lots of coins in circulation. New units will be created every year, leaving us with an endless supply of DOGE. Coins with a limited supply are more likely to rise in price within a short amount of time. I'm talking about coins like Bitcoin, Litecoin, Diamond (DMD), and Dash. Especially Bitcoin which is the most popular cryptocurrency in the world. Who knows how the market will change in the long run as new players join the scene? Just my thoughts Grin

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TheUltraElite
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August 31, 2023, 05:50:33 AM
 #162

Consider how Dogecoin is still worth something even though there are lots of coins in circulation. New units will be created every year, leaving us with an endless supply of DOGE. Coins with a limited supply are more likely to rise in price within a short amount of time. I'm talking about coins like Bitcoin, Litecoin, Diamond (DMD), and Dash. Especially Bitcoin which is the most popular cryptocurrency in the world. Who knows how the market will change in the long run as new players join the scene? Just my thoughts Grin
I like your optimism about the altcoins.

However from my experience the altcoins are mainly capitalised during the cycles when the hype is good and it drives an inorganic demand. On the other hand bitcoin has its own organic demand over time. Hence I prefer the second always. But hopeful people are free to invest in the former. The only problem is that they need to be monitored and the social media kept track of, who knows which celeb is going to talk shit or gold about a certain coin.

Their circulating supply is often raises eyebrows because of a lot of reasons, lack of trust in the developer, premine and so on.

R


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August 31, 2023, 08:18:17 AM
 #163

What is the fair percentage of a total max supply that are in circulation that can make you invest in a project? It is fine to avoid a project that has low circulating supply? Why? What about if the project is a brand new project and the use case is killing it?

I will take a few examples of projects to discuss.

Eg :

1. Aptos: They are given 130M(Initial circulation supply) at the TGE(13%) 
2. Sei: They are given 1800M(Initial circulation supply) at the TGE (18%)

When you compare the above 02 projects, Aptos has the full potential to grow. Because Aptos is given a lower percentage for the circulation supply. Sei's circulation supply is higher than the aptos. But when you compare with the use cases of the 02 projects, Sei is faster than aptos. Sei is the fastest layer 1 project.  But if you compare sei and Aptos prices, Aptos price is higher than the sei.

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