Definition ∞ Money supply represents the total amount of currency, including physical cash and digital equivalents, circulating within an economy. In traditional economics, central banks manage money supply to influence economic activity. For cryptocurrencies, the money supply is often governed by predefined protocol rules, making it transparent and predictable.
Context ∞ The concept of money supply is highly relevant in crypto news, particularly when discussing the monetary policies of various blockchain protocols, such as Bitcoin’s fixed supply or Ethereum’s changing issuance. Discussions often contrast the decentralized, algorithmic control of crypto money supply with the discretionary policies of central banks for fiat currencies. Understanding these differences is crucial for assessing the long-term value and economic implications of digital assets.
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