Cryptocurrency is a form of digital or virtual currency that relies on cryptographic techniques for security. Operating on decentralized networks based on blockchain technology, cryptocurrencies eliminate the need for a central authority, such as a government or central bank. Blockchain, a distributed ledger, records all transactions across a network of computers, ensuring transparency and security. Cryptocurrencies, like Bitcoin, use a finite supply mechanism, often capped by a predetermined limit, enhancing their scarcity and potential value. They enable global transactions, providing users with relative anonymity through pseudonymous addresses and offering quick and efficient cross-border transactions.

Bitcoin, introduced in 2009 by the mysterious Satoshi Nakamoto, was the pioneering cryptocurrency and remains the most prominent and valuable. Since its inception, numerous alternative cryptocurrencies, known as altcoins, have been developed, each with unique features and use cases. Ethereum, Ripple, Litecoin, and many others have gained popularity for various purposes, including smart contracts and faster transaction processing. While cryptocurrencies present opportunities for investment and innovative applications, their values can be highly volatile, and regulatory factors can significantly influence their adoption and acceptance. As such, individuals engaging with cryptocurrencies should conduct thorough research and consider the associated risks.

What is a Limited Supply?

A limited supply in the context of cryptocurrencies refers to the intentional design choice to restrict the total quantity of a particular cryptocurrency that can ever be created. This scarcity is typically programmed into the cryptocurrency’s protocol and is a key feature that distinguishes many cryptocurrencies from traditional forms of currency.

For example, Bitcoin, the first and most well-known cryptocurrency, has a maximum supply cap of 21 million bitcoins. This means that once 21 million bitcoins have been mined or created through the process of validating transactions on the Bitcoin network, no more new bitcoins will be generated. The limited supply of Bitcoin is intended to mimic the scarcity of precious metals like gold and is often cited as a factor contributing to its perceived value.

The concept of a limited supply is designed to prevent inflationary pressures that can arise when a currency can be created in unlimited quantities. By setting a maximum supply, cryptocurrency developers aim to create a deflationary economic model, where the scarcity of the digital asset may contribute to its long-term value. However, it’s important to note that the limited supply alone does not guarantee the value of a cryptocurrency; market demand, adoption, and other factors also play crucial roles in determining the value of a digital asset.

Several cryptocurrencies have a limited supply. Here are 10 Cryptocurrencies with Limited Supply:

1. Bitcoin(BTC)

Bitcoin is the first and most well-known cryptocurrency. It has a maximum supply of 21 million coins. This limited supply is hardcoded into the Bitcoin protocol, and it is expected to be fully mined by the year 2140.

2. Litecoin(LTC)

Litecoin is a peer-to-peer cryptocurrency that was created as a “lite” version of Bitcoin. It has a maximum supply of 84 million coins, four times that of Bitcoin. Litecoin uses a similar mining algorithm as Bitcoin but has a faster block generation time.

3. Binance Coin(BNB)

Binance Coin is the native cryptocurrency of the Binance exchange. It was initially issued as an ERC-20 token on the Ethereum blockchain but later migrated to its own blockchain called Binance Chain. The maximum supply of BNB is 200 million coins, but Binance has a token burn mechanism in place to reduce the supply over time.

4. Cardano(ADA)

Cardano is a blockchain platform that aims to provide a more secure and sustainable infrastructure for the development of decentralized applications. ADA is the native cryptocurrency of the Cardano platform, and it has a maximum supply of 45 billion coins.

5. Stellar(XLM)

Stellar has a maximum supply of 50 billion XLM coins.

6. Monero (XMR)

Monero has a limited supply, with a maximum cap of approximately 18.4 million coins.

7. Dash (DASH)

Dash has a maximum supply of 18.9 million coins.

8. Ripple(XRP)

Ripple is both a payment protocol and a digital currency. It has a maximum supply of 100 billion XRP coins. However, it’s worth noting that Ripple Labs, the company behind XRP, holds the majority of the XRP supply in escrow and releases a portion of it periodically.

9. Zcash (ZEC)

Zcash has a limited supply, with a total coin cap of 21 million coins.

10.NEO (NEO)

Capped at 100 million.