You may wonder why the DMD diamond blockchain coin is five times more scarce than Bitcoin. Why the scarcity, and what advantage does the coin’s scarcity present to the DMD diamond blockchain ecosystem and its users? You are not alone. This article will address factors behind the DMD diamond blockchain coin scarcity and how advantageous the scarcity is over other cryptocurrencies in the industry.
The factors are:
1. Limited Supply: Capping the DMD diamond blockchain coin’s total supply to 4.38 million coins is the most crucial factor that made it more scarce. Hence, making our native coin a deflationary cryptocurrency since there will never be over 4.38 million DMD coins produced. The fixed supply ensures that the number of coins doesn’t exceed this limit – creating a sense of scarcity.
2. Delegated Proof-of-Stake (DPoS) Node Election Mechanics: The DMD diamond blockchain that powers the DMD diamond coin uses the DPoS to make the ecosystem more decentralised and, significantly, to reward the coin’s holders who took part in securing the network and validating transactions via staking processes. This, in turn, reduces the number of circulating coins and therefore contributes to the DMD diamond coin’s scarcity.
Some of the advantages of the DMD diamond blockchain coin scarcity in the blockchain Industry include:
1. Exclusivity and Rarity: one of the advantages the limited total supply of DMD Diamond coins presents is that it offers an element of exclusivity and, importantly, a rarity to the cryptocurrency. This feature could attract coin holders and enthusiasts who value scarce assets to invest in it, much like rare collectibles we see in physical life.
2. Store of Value: Scarcity is a crucial factor that makes a cryptocurrency function as a store of value – an exciting option for investors to store and preserve their wealth in a decentralised digital manner—all thanks to its limited total supply.
3. Stability and Reduced Inflation Risk: The DMD Diamond blockchain’s regulated coin issuance through staking incentives helps to control the risk of excessive inflation. With the stability, DMD diamond coins become more enticing to investors and users willing to opt for a sustainable long-term investment.
4. Increase Demand and Potential Price Appreciation: The scarcity of assets often comes with a surge in demand. When people recognise and value the scarcity of DMD Diamond coins more, the demand may rise, resulting in price appreciation over time.
5. Offers Credibility and Trust: A cryptocurrency rarity adds credibility to it and therefore becomes a more valuable and sought-after asset. When a cryptocurrency’s supply is strictly regulated, just like the DMD diamond coins, investors and users would have an assurance that the cryptocurrency won’t be affected by unforeseen inflationary spikes.
In conclusion, It’s noteworthy to know that while scarcity affords some intriguing advantages and hence a hidden gem of the ecosystem, the success of any cryptocurrency depends on many factors, such as technological innovation, use cases, adoption, and community support. We look forward to your collaboration toward our community-driven project – the DMD diamond blockchain and its native coin.
Learn more – https://bit.diamonds/blog/
