Definition ∞ Scarce Supply is a fundamental economic characteristic where the available quantity of a particular asset is inherently limited. This restriction can be natural or by design, often contributing to the asset’s value when demand is high. Many cryptocurrencies are intentionally created with a finite total supply.
Context ∞ Scarce supply is a defining feature of many digital assets, such as Bitcoin, contributing to their appeal as a store of value. News frequently discusses the impact of this limited availability on price dynamics and long-term investment theses. The economic implications of digitally enforced scarcity are a central topic in cryptocurrency analysis.