Which statement about cryptocurrency supply is true?

Which statement about cryptocurrency supply is true?

• A. The supply is unlimited and can be printed by central banks.
• B. The supply is capped, creating a maximum number of coins that can ever be in circulation.
• C. The supply increases automatically with demand.
• D. The supply is controlled by the IMF.

Answer: (B)

Cryptocurrency supply is typically fixed by the code, creating a maximum number of coins that can ever exist. This built‑in cap provides scarcity and predictability; for example, Bitcoin has a hard limit of 21 million coins, so no new coins can be created once that ceiling is reached. The idea that supply is unlimited and can be printed by central banks describes fiat money, not most cryptocurrencies, where issuance follows a pre-set rule rather than a central authority. Supply does not rise automatically with demand because creation follows a predetermined schedule or cap rather than price signals. And the IMF does not control cryptocurrency supply; issuance and governance are determined by the cryptocurrency’s protocol or its community, not an international financial institution.

Cryptocurrency supply is typically fixed by the code, creating a maximum number of coins that can ever exist. This built‑in cap provides scarcity and predictability; for example, Bitcoin has a hard limit of 21 million coins, so no new coins can be created once that ceiling is reached. The idea that supply is unlimited and can be printed by central banks describes fiat money, not most cryptocurrencies, where issuance follows a pre-set rule rather than a central authority. Supply does not rise automatically with demand because creation follows a predetermined schedule or cap rather than price signals. And the IMF does not control cryptocurrency supply; issuance and governance are determined by the cryptocurrency’s protocol or its community, not an international financial institution.