HACKER Q&A
📣 sasaf5

What prevents an infinite supply of crypto?


New cryptocurrencies are created everyday, and by design there's nothing that can stop them being traded among each other. Doesn't that create an infinite supply of crypto?

  👤 gostsamo Accepted Answer ✓
Yes, but there is a limited supply of demand, so to say. Though someone can create as many currencies as they like, they need people to be interested and this is not so easy. So, there will be a long tail of crapcoins and a few that will take 99% of the market.
👤 jqpabc123
Yes, anyone with moderate technical skill can create their own crypto.

The real economic keys to the crypto marketplace are concentrated in the "exchanges".

Exchanges are market makers who set prices for crypto but in some cases they are also engaged in minting new crypto --- an inherent conflict of interest and incredible opportunity for manipulation that undermines the integrity of the entire crypto marketplace in my opinion.