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Max Supply
Max supply refers to the total number of coins or tokens that will ever exist for a particular cryptocurrency. It is a fixed limit set by the protocol that determines how many units of the cryptocurrency can ever be created. Bitcoin, for example, has a max supply of 21 million coins. Once the max supply is reached, no more coins can be mined or minted, which can lead to scarcity and potential price increases if demand remains strong. Knowing a cryptocurrency’s max supply is crucial for understanding its inflationary or deflationary nature and long-term value proposition.
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