Ethereum is one of the most popular cryptocurrencies. There are many advanced features which make this coin as one of the best coins to invest. As you already know that Bitcoin is a store of value.
In other words, it is an expensive asset and difficult to manufacture, with planned supply, since only 21 million bitcoins will be created and no one can change this. This shows that Bitcoin is limited. But are Ethereum coins limited? Let’s take a look at it.
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Ethereum , a fixed supply?
No, in the case of the Ethereum there is no limit. This is the reason why Bitcoin is known as digital gold but you can’t say the same thing about Ethereum.
Ethereum is a platform that was founded by Vitalik Buterin. The great thing about ETH is that Vitalik hasn’t put a limit on the number of ETH that can be mined. Nevertheless, as the block time expands mining will become less important, as the prizes do not grow with the problem.
Ethereum. Image Source: ETH White Paper
There are also many distinct opinions about the ETH limit. As per the conditions accepted by all parties on the 2014 presale, issuance of ether is limited at 18 million ETH per year. This suggests that while the total issuance is established, the corresponding buildup is reduced every year. In hypothesis, if this issuance was continued endlessly then at some period the flow of new tokens generated every year would lead the medium amount spent yearly and it would touch equality.
Bitcoin’s unique peculiarity is its deflationary universe. As mentioned earlier, there are only 21 million bitcoins which could be mined. In the case of the ETH, the number of coins that could be mined is not restricted and this makes ETH as an inflationary coin. It should hurt the price but Ethereum price considers the impact of so many constituents such as increasing demand and many other factors. Also, ETH has been mined according to the Proof-of-Work protocol. The distinguishing peculiarity of this mining approach is the demand for processing energy for new coins mining.