What does fixed supply mean?

Fixed supply refers to a situation where the total quantity of an asset or resource is capped and cannot be increased. This concept is commonly associated with commodities like gold or certain cryptocurrencies, where a predetermined amount exists. As demand for such assets grows, their scarcity can lead to increased value, as no additional supply can be created to meet that demand. In economic terms, fixed supply often contributes to price volatility based on market fluctuations.