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Author Topic: Circulating Supply why the difference in coins  (Read 167 times)
Coyster
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December 29, 2024, 01:49:07 PM
 #21

Just the other day on this board, i think i read a post were a user said they like to buy many cheap tokens and wait for them to pump, so for many people like this, they just want to acquire tokens or coins, they are not looking at other important aspects of the project. Many developers just want to make money and so to do that they have to make their tokens available for people to buy, with how quick many people want to make money from crypto, quite a lot of devs find it easy to make money off them.

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tromp
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December 29, 2024, 04:54:10 PM
 #22

With bitcoin it was largely dictated by the number of "bits" used to represent the numbers internally.
The number of bits in the internal representation only limits the number of satoshis.
Choosing 1 bitcoin to be 100M satoshis is still somewhat arbitrary. It might have just as well been
100K satoshi, while limiting the supply to 21 billion bitcoin.

Every emission is kind of arbitrary.

Except one. The one that emits 1 coin per unit of time. From launch forever onward.
The circulating supply is then simply the time since genesis. While the soft total supply is still limited [1].

[1] https://john-tromp.medium.com/a-case-for-using-soft-total-supply-1169a188d153
doomloop
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December 30, 2024, 08:41:43 PM
 #23

probably to make this feeling that this coin is still cheap to make people buy it.
Price has to do with supply and higher supply can also equates to cheaper price. So yeah. There are still people that look for other factors before they invest apart from the price. This is how proper investing would be. Apart from what you said there, a high-supply coin might also be easy to manipulate. If the devs has a bad intention, they will usually prioritize it.

but truth to be told, there are investors and traders who trade based on the coin price, which is ridiculous, but I guess this kind of gimmick still works.
We can't deny that price is also important, especially for the traders. Every count or movement matters a lot to them. If they are skilled enough, yes it is possible for them to profit even if they only invest in a cheap coin that has a huge amount of supply. Usually they are only doing it for the short term to cut the risk.

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