Bounded supply refers to a fixed maximum number of units that can ever be created for a particular cryptocurrency. This limit is set from the outset to ensure scarcity, which can influence demand and value over time.For example, Bitcoin has a capped supply of 21 million coins. This means that once this number is reached, no additional coins can be mined or produced. Such scarcity can lead to increased demand, especially as more people become interested in using or investing in the asset.A bounded supply contrasts with traditional currencies that can be printed in unlimited amounts by central banks. This characteristic plays a significant role in how value is perceived and can lead to deflationary pressures, as the fixed supply can drive up prices if demand continues to grow.This approach aims to provide a hedge against inflation and brings about a sense of reliability for holders who want to maintain the value of their assets over time.