When a cryptocurrency reaches its maximum supply, no more coins can be created. Here's what happens in simple terms:


 

  1. Mining Rewards End: For coins like Bitcoin, miners won’t get new coins as rewards anymore. Instead, they’ll earn money from transaction fees paid by users to process and secure transactions.

  2. Scarcity Increases Value: Since no more coins can be made, the limited supply might make the cryptocurrency more valuable if people still want it.


  3. Dependence on Fees: The network will rely on transaction fees to keep running. If the fees are too low, miners might stop working. If fees are too high, users might stop using it.

  4. Shift in Purpose: The coin might be seen as more of a “digital gold” — something to hold and save — rather than money to spend every day.

  5. Each Coin is Unique: Some cryptocurrencies avoid this by having no limit or burning coins to manage supply.


In short, the coin becomes a fixed resource, like gold, and its future depends on how people value and use it.