Definition:
The maximum supply is defined as the maximum number of cryptocurrency coins or tokens that will ever exist. It includes the total number of coins or tokens that can ever be mined or created, as such, the coins do not necessarily need to exist currently or be in circulation to be counted towards the maximum supply.
Explanation:
The value of the maximum supply is typically determined by the cryptocurrency’s developers and is programmed into the project’s code from inception. Since this figure is hardcoded, it cannot be changed by anyone. For example, Bitcoin’s maximum supply is 21 million coins. This means that the total circulating supply can only ever reach 21 million over the lifetime of the cryptocurrency.
By contrast, fiat currencies do not possess a maximum supply since the supply can be increased by simply printing more bills.
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