Crypto Emission and Its Impact on the Market Cryptocurrency emission is the process of releasing new tokens or coins into circulation. In different blockchain networks, emission can occur in various ways: through mining, staking, or pre-mining (pre-mine). This factor influences asset scarcity, inflation, and investor behavior. How Does Cryptocurrency Emission Work? 🔵 Limited and Unlimited Emission — Bitcoin (BTC) has a strict limit of 21 million coins, making it a digital gold equivalent. — Ethereum (ETH) has no emission limit, but it implements burning mechanisms to control inflation. — Some tokens (DOGE, SHIB) have unlimited emission, increasing inflation risks. 🔵 Halving and Reduced Supply — Bitcoin's emission decreases every four years (halving). This reduces supply, creating scarcity and potential price growth. — Some altcoins also have mechanisms to slow down token issuance. 🔵 Emission Through Staking — In Proof-of-Stake (PoS) networks, new coins appear as staking rewards. This supports network security but can increase inflation if the issuance rate is too high. 🔵 Pre-Mine and Token Distribution — Some projects release all coins in advance (pre-mine), distributing them among developers and investment funds. — If most tokens are held by insiders, it can lead to price manipulations. How Does Emission Affect the Market? 🔵 Limited emission → Creates scarcity, which can drive price growth. 🔵 High inflation → Reduces token value if demand does not keep up with supply. 🔵 Sudden unlocks → Can cause price dumps when large investors sell their holdings. 🔵 Controlled emission and token burning → Help maintain asset value. CryptoFam #crypto #cryptofam