Circulating Supply & Total Supply

Bitcoin Questions and AnswersCategory: General questionsCirculating Supply & Total Supply
Kai asked 3 weeks ago

Hello,

if the Circulating Supply & Total Supply are very high like Cardano (ADA) for example, many Billions, is that a bad thing for price growing? I imagin if that grow to 100 then the total price will be unimaginable SO can that happen for such Billions of supply? WHat is your opinion.

2 Answers
Steven Hay answered 3 weeks ago

Hi Kai,
 
The economic “law” of supply and demand would mean that the more available supply, the more it will satisfy demand and so drive down price.
 
If you consider Bitcoin, 12.5 coins are created on average every 10 minutes. There are 1440 minutes per day, so that’s 1440 / 10 * 12.5 BTC = 1800 new Bitcoin every day. At the current price, that means 1800 BTC * $8200 = $14,760,000 needs to flow into Bitcoin each day just to maintain the current price! $14m daily is pretty strong demand, never mind that as price as rising it means even more demand is driving up price.
 
I’m not sure about Cardano, not sure what’s it’s distribution is like or if it’s still in ICO phase, but this is how you can work out what the real demand for a coin is like.

Kai answered 3 weeks ago

Thanks Steven,
Lets take Ripple as an example, they have about 39 Billion Circulating Supply and about 100 Billion Total Supply.
if they are sooo good and they have an amazing features and and and etc. is that possible that they can reach the 500 $ per 1 Ripple?
100 Billion X 500 = 50.000 Billion. Oh my god :0) what is that, can a company have such a value?

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