Description: Fixed supply refers to a cryptocurrency that has a predetermined maximum supply that cannot be changed. This concept is fundamental in the design of many cryptocurrencies, as it establishes a limit on the total number of coins that can exist. For example, Bitcoin has a fixed supply of 21 million coins, meaning that once all are mined, no more will be created. This feature is crucial for the cryptocurrency’s economy, as it helps prevent inflation and maintain long-term value. Fixed supply also influences the perception of scarcity, which can increase demand and, consequently, the price of the cryptocurrency. Additionally, fixed supply fosters trust among users, as they know there will be no uncontrolled issuance of new coins that could dilute their value. In summary, fixed supply is a cornerstone in the structure of many cryptocurrencies, providing stability and confidence in a market that can be volatile.