There are 21 million Bitcoins in total, and every four years, its mining rewards will be halved. Nearly 20 million Bitcoins have been produced. This means that 90% of BTCs are already in circulation, and in the next 100 years, the overall total will only increase by 10.5%. Therefore, Bitcoin will depreciate due to the inflation mechanism. The expectations were not strong.

What about Ethereum? Its circulating supply is approximately 1.1 billion, and there is no cap on the amount of ETH in circulation. However, the supply of Ethereum has adapted a burning mechanism to adjust in order to maintain a constant number of tokens, and there may even be deflation, resulting in a total supply of tokens between 100 million and 120 million. With this in mind, we should also not expect that Ethereum will experience too much inflationary pressure. It can even become deflationary.

Dogecoin also has no supply cap and currently has an annual inflation rate of around 5%. So among these three tokens, we expect inflationary mechanisms to put devaluation pressure on Dogecoin that will be more intense than what Bitcoin or Ethereum faces.

Including other cryptocurrencies, one issue we also need to consider is supply distribution. Are some investors holding large amounts of tokens about to be unlocked? Does the protocol provide a significant amount of tokens to the community? Is the distribution mechanism fair? If 25% of the tokens owned by some investors will be unlocked within a month, you should be cautious when buying. These are major considerations in the supply side of the token. Now, a demand-side perspective makes the evaluation more interesting. $BTC $ETH $DOGE