Tokenomics for Newbies

At a fundamental level, It tells us how many tokens are available for investors to purchase at this moment circulating supply, all coins that will ever come into existence which is max supply, and lastly total supply which includes coins that includes all coins minus the ones that haven’t been mined yet.

Tokenomics to be learned for newbies is especially important in the crypto-space due to its lack of regulation. Since there are no laws governing cryptocurrencies, tokenomics for newbies provides an opportunity for cryptocurrencies to be evaluated according to their real-life merit, not just how they are traded on exchanges.

For example, the main coin bitcoin has 19 million in circulating supply and a maximum supply 21 million which is great because that’s the beauty of bitcoin. Although 19 and 21 at least 3 million have been lost due to people not knowing passwords so it is more like 16 million and 18 million at a max supply tokenomics level deflationary over time since more people will lose keys and there can never be more that 21 max.

Fundamentally, for the most part, the less circulating supply there is compared to max supply the worse it is for the most part because it means that owners have more of the supply and if they wish to they can sell it which ultimate can crash the supply making it a pump and dump.