What does it mean when a coin's circulating supply is close to its max supply?

[errol94]

What's the logical thing that would happen? This doesn't necessarily mean the circulating supply = max supply, but what would happen if the circulating supply is very close to the max supply? Thanks.

[pedropendukot]

I would say the coin's price will would be stable,if the BTC has reached its limit or max supply the price will go down and will be stable for good because miner's wont have anything to mine,traders would give the price of the coin.

[PMmesexycoins]

If things stay that way it means no more that the coin itself will become rarer over time, as people start losing access to existing ones for whatever reason. Assuming demand stays the same, the existing coins could gain trade value as the situation progresses, but that's just in vacuum without alternatives.

[Bitfort]

What's the logical thing that would happen? This doesn't necessarily mean the circulating supply = max supply, but what would happen if the circulating supply is very close to the max supply? Thanks.

I understand that as "almost all coins are already mined".

My logical assumtion is: If the coin is popular (useful, adopted) then the coin price will go up  (as there is coming the day you won't be able to obtain coins by other means then buying them and current hodlers aware of this situation will be hesitating to sell theirs coins thus driving the price up. But there is to many other variables which can make the exact opposite.  

[gredisgold88]

to price stability, and balanced coin will soft run smoothly and have a mature capability in mining .

[m.vina]

I'd say a coin nearing max supply means that it is a mature coin and therefore will probably have an increase in it's value. Take for example bitcoin, once it reach 20M i'm sure there are alot of people who would be afraid to miss out and suddenly buy every bitcoin they can.

[lamby]

Definitely a good coin with circulating been close to maximum supply will get more value. Akin to less supply more demand. Increase in price

[lamby]

to price stability, and balanced coin will soft run smoothly and have a mature capability in mining .

A good coin like btc makes it difficult to mine as time goes on.
This is to ensure that even though much coins have been produced, mining contones.
However miners get greater rewards for more difficult work because the price of the coin goes up too

[slaman29]

A lot of right answers in here but it will be very difficult to predict what happens in price when this situation nears because the economy will depend on a lot of things (all the above, and on each other).

Supply becomes scarcer, so this should mean that price goes higher as there is less to go around. Correct, but only if demand continues. If miners were mining it just because they get rewards, and when supply is max, rewards diminish. So they rely on fees to make money. Here will be the true test of coins. Bitcoin is used the most by merchants and people buying and selling goods and services. But alts with no further use will have low transactions volume, ie less demand. So miners won't have transactions to confirm, and no fee earning, they move away, the network has fewer nodes and becomes less secure... price goes down.