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Issue is the issue of money and/or securities in circulation.

In developed countries, central banks and treasuries have the exclusive right to issue money. Issuing banks issue credit money, and the Treasury is engaged in the issue of treasury notes and change coins. Each country has its own issue system, which determines the rules for issuing banknotes, as well as the size of the issue of cash, its norms and forms of collateral.

The issue of cryptocurrencies is a continuous process of generating a new cryptocurrency in a particular network. Thus, if in traditional systems the issue of currency is carried out by printing and minting new banknotes, then the issue of cryptocurrency is due to mining.

Types of cryptocurrency issue

Limited emission with a one-time issuance of all coins

Coins whose issue volume is set immediately and which are issued in the first block. This system has a finite supply with all tokens that are created immediately when the network starts. This means that all inflation will be reflected in the price, not in the number of coins. If this network acquires value in the future and gains weight in the market (for example, it will be implemented by banks or processing companies), there is an advantage in buying a large number of tokens at the early stages of the project. All the value will be distributed among the old coins!

Limited issue

The most famous cryptocurrency with this emission model is Bitcoin. Blocks are mined in the network every 10 minutes, the complexity of calculations is regulated — it is impossible to mine all the coins at once. The entire issue is limited to 21 million tokens. Thus, the rate of BTC inflation will decrease, the number of tokens in circulation is known at any given time.

Unlimited issue

An example of a cryptocurrency with an unlimited issue and an unlimited final number of coins is Ethereum. When there is no established network capacity limit or a fixed mining rate, designing the future value of one coin is almost impossible. One can only say about the cost of the entire network. This also implies that the issue will be adapted to the actual use of the network and that its level can be controlled to the optimum.

See also