Test Your Knowledge
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1. What does the circulating supply of a cryptocurrency represent?
A) The number of tokens actively available in the market.
B) The total number of coins that will ever be created.
C) The number of coins permanently removed from circulation.
D) The number of coins locked in smart contracts.
2. What is the impact of a low circulating supply on a cryptocurrency's price?
A) It generally correlates with a lower price due to oversupply.
B) It generally correlates with a higher price, as there is limited availability.
C) It has no effect on the price.
D) It causes the price to fluctuate randomly.
3. Which of the following is included in the total supply of a cryptocurrency?
A) Only the coins that are actively circulating.
B) Only the coins locked in smart contracts.
C) All minted coins, including those not yet distributed or burned.
D) Only the coins that are being actively traded.