Money Supply
Money supply is a term used to describe the total value of money in circulation within an economy at any given time. It is typically measured using either the M1 or M2 measure, which refer to different types of financial assets that are included in the calculation. The money supply includes physical currency (coins and paper notes), as well as other forms such as demand deposits, savings accounts, and certificates of deposit. Money supply data can be used by economists to help gauge economic activity, inflationary pressures and central bank policies.
In terms of cryptocurrency, there may not be a widely accepted definition of what constitutes a “money supply” because cryptocurrencies are decentralized digital assets that exist outside traditional banking systems and government control. However, some experts have proposed measures for evaluating “crypto money supplies” based on characteristics like total market capitalization (total value), circulating coins/tokens (number available for trading) and maximum coin/token limit (maximum number available). This information may serve as useful indicators when assessing whether certain digital currencies present deflationary risks or could potentially become popular methods for storing wealth relative to more traditional fiat currencies like euros or dollars.
