I noticed that many crypto newcomers don’t understand one basic point—where coins actually come from and why it’s so important for the price. This is about the issuance of cryptocurrency, meaning how new coins are created.

Here’s the gist: in traditional finance, issuance is controlled by central banks, while in crypto it’s built right into the blockchain algorithm. And this completely changes the entire game.

So, Bitcoin is a deflationary asset. A maximum of 21 million BTC, period. New coins are issued through mining, but every 4 years the halving cuts the reward in half. Right now, BTC is trading at around $78.15K, up 0.82% over the day. It’s like digital gold—the lower the supply, the higher the value. Conservative investors especially like this kind of model.

Litecoin runs on a similar scheme, but with a limit of 84 million LTC. There’s also a halving—currently, the coin is around $55.22. The principle is the same: cryptocurrency issuance here gradually decreases, which helps support scarcity.

Dogecoin takes the opposite approach. There, 5 billion DOGE are released every year with no upper limit. Yes, inflation gradually decreases in percentage terms, but the supply is infinite. Right now, DOGE is down 0.92% and is trading at around $0.11. Such assets are riskier for long-term holding.

Ethereum is a separate story. After switching to Proof of Stake in 2022, cryptocurrency issuance became dependent on staking activity. Plus, EIP-1559 introduced fee burning, which may make ETH deflationary. Right now, Ethereum is around $2.30K, up 0.61%. It’s an algorithmically managed model, more flexible than Bitcoin’s.

Overall, understanding exactly how coins are issued helps predict where the price might go. Fixed issuance is a conservative choice. Algorithmic issuance is for those who are willing to accept volatility. And hyperinflationary assets, like some meme coins, are essentially speculation on the wave of hype.

When choosing an asset, be sure to check its WhitePaper and understand the issuance logic. Keep an eye on protocol updates—they seriously affect the project’s economics. And remember: cryptocurrency issuance isn’t just a technical parameter; it’s the foundation on which the coin’s entire value is built.