What Is a ‘Hard Cap’ in Cryptocurrency Terms?

A 'hard cap' refers to the absolute, fixed maximum number of coins that will ever be created or exist for a specific cryptocurrency, such as Bitcoin's 21 million limit. This limit is embedded in the protocol's code and cannot be changed without a hard fork that gains consensus from the majority of the network.

The hard cap is a fundamental feature of the monetary policy, ensuring scarcity and preventing inflationary supply.