Definition ∞ A Fixed Amount refers to a predetermined and unvarying quantity of a digital asset or currency. This specific quantity remains constant regardless of market fluctuations or other external factors. It establishes a hard cap or a static supply limit for the asset. This characteristic is fundamental to the economic model of many cryptocurrencies.
Context ∞ Many cryptocurrencies operate with a fixed maximum supply, such as Bitcoin, which contributes to their deflationary properties and value proposition. Conversely, some stablecoins aim to maintain a fixed value relative to a fiat currency, although their circulating supply may vary dynamically. Understanding whether an asset has a fixed amount or a fixed value is crucial for investment analysis and economic forecasting.
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