Money supply of a country depends upon its reservation of foreign currency and gold reserve in the respective central bank.While digital currency or bitcoins as a crypto assets are cross boarder currency among different stake holders.It is exchanged between different peers or groups or groups of individuals or simply individuals or persons.Actually it is a digital transaction among countries without periphery.It does not have a head quarter.It circulates through a computer screen.Though it has not a screenless apps like gpay,upi,phonepay etc.Although,there are some possibilities of supplying money to the unlawful activities like the miscreant group of people but one can make transaction to purchase goods and services like other currencies.It does not require any mint cost to issue or printing the coins.Besides no needs gold reserve or foreign reserve currency like U.S dollar or gp.But there have some climatic reason in circulating these digital currency due to technological issues while the currency transfer from one to another.Modern AI and starts up needs to invest them.The existing demand for bitcoin depends upon its customer at a time while unleashes the amount of bitcoin by a respective countries.It never loses its value until its ending the intrinsic value of the coins.It is a wholesale coin in the money market.keeping intake the total supply of money of a country it does not impact in inflation of a country.But due to sudden supply of money it is a sudden shock of money.It is a stable coins because it has nothing appreciation or depreciation value of a country.But there are some revenues of a certain government in accepting it as legal tender currency.The governments receipts some fees and taxes from such bitcoins.
Home CryptocurrencyBitcoin blockchain – Does bitcoin or crypto asset impact upon the total supply of money in a country?