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A variable of resource is a concept related to the crypto-assets market, referring to a specific digital asset with limited supply. In contrast to traditional fiat currencies such as the US dollar or the euro, which can be endlessly printed by central banks, cryptocurrencies are characterized by a predetermined quantity that can be mined. This reduces the risk of inflation and excessive dilution of the value of held tokens.
Characteristics of a Variable Resource
In the context of crypto-assets, a variable resource has several distinctive characteristics:
1. Limited Supply
One of the key features of a variable resource is the limited quantity of available tokens. An example is Bitcoin, whose maximum supply is set at 21 million coins. Such a limitation makes cryptocurrencies be treated as rarer and more valuable than traditional currencies.
2. Security
Thanks to the implementation of blockchain technology, variable resources are safeguarded against counterfeiting and duplication. Every transaction is recorded in a secure data structure, ensuring the honesty and transparency of the entire system.
Examples of Variable Resources
The most well-known example of a variable resource in the world of crypto-assets is Bitcoin. It was created in 2009 by an individual or a group of individuals operating under the pseudonym Satoshi Nakamoto. The plan is to release 21 million bitcoins, making it a limited resource.
Another example is Ethereum, which also has a limited supply. This platform enables the creation of so-called smart contracts and the running of decentralized applications (DApps). Similar to Bitcoin, the quantity of available Ethereum tokens is restricted.
Summary
A variable resource is a crucial concept in the world of crypto-assets, concerning digital assets with a predetermined and limited supply. Thanks to this, cryptocurrencies can be seen as secure and valuable investments, with limited inflation risk. Understanding this concept can help investors make informed decisions in the cryptocurrency market.