Hey everyone, I'm trying to understand the fundamental difference between Bitcoin and Ethereum regarding their supply. I know Bitcoin has a hard cap of 21 million, which is easy to grasp. But with Ethereum, I keep hearing different thingssome say it's infinite, others mention a "merge" changing it, and now there's talk about it being "ultra-sound money." Can someone break down, in simple terms, what Ethereum's actual supply mechanics are? Is there a fixed max like Bitcoin, or does it keep inflating forever? What changed with the move to proof-of-stake?
User: EtherExplainer
Ethereum doesn't have a fixed cap like Bitcoin. Since The Merge, its supply is dynamic. New ETH is issued to stakers, but a portion of transaction fees is also burned. When network usage is high, more ETH is burned than issued, making the supply deflationary. It's a managed supply, not a fixed or purely infinite one. The current supply is around 120 million ETH. This article explains the mechanics well: paybis.com/blog/how-many-ethereum-are-there/