Fixed Supply

The supply, or total quantity, of an asset is constant and does not change with a fixed supply. When an asset has a fixed supply, such as the fixed supply of 21 million bitcoins (BTC), the primary factor influencing price fluctuations is demand. The price elasticity of an asset, or the responsiveness of the number of goods or services required to change its price, is related to its supply. The elasticity of an asset is said to be zero when it has a fixed supply.