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How the currency being burned?

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We hear a lot about the term coin burning, and I think everyone knows that it is a way to destroy currencies in order to either reduce inflation for it or to raise its market value. It is an axiom in the world of trade in general that the price increases whenever the supply decreases and the opposite is true.

But technically how is this burning process done?
In summary: There are two ways to do that, either for the coin metallic to be burned a part of it and those who have high-strength computers working on the principle of Proof Of Work (pow) send it to a zero address (0x0000000000000000000000) or an unknown address of the keys.
The second way is for developers to call a specific function that they had prepared at the time of coin creation and to delete the number required to be burned from the main record. The bottom line is that currency burning means (isolating) this amount from the circulating supply chain, either with a view to limiting the rate of currency inflation , Or reduce the current supply of this digital currency.

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59 minutes ago, Abanti34 said:

The main purpose of burning the currency may be to launch coins through digital.  The coins are not burned in such a way that they are moved in such a way that the stickers are then replaced with an image on them.

This process is a way to isolate the currency from the circulating supply chain, either with the goal of reducing the rate of inflation, or reducing the circulating supply of crypto currencies.

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There are many things a round cryptocurrebncies and especially Bitcoin that we dont know! for example about what you are talking here on this topic; is good to know more and more about these things. 

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12 hours ago, SuperCrypto said:

But technically how is this burning process done?

You could look up online and see how it's done. Here is a reference link for you: https://www.investopedia.com/tech/cryptocurrency-burning-can-it-manage-inflation/

 

To summarize the article, and to answer your question above, they do such act by sending the coins to be 'burned' on a special address with irretrievable private key (which is what is used to 'use' or spend the coins).

 

Having them locked out on an address, makes the circulating supply of coins lower.

 

However, the price appreciation of doing such kind of action is not guaranteed to take effect. The market is still volatile and thus, price trend is not predictable.

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My ideas about currency burning were low I didn't know much about currency burning, but I got a lot of information from this post. Can I learn a lot more information about a little currency from this forum and your post has helped me a lot. Thank you very much.  Post for you to share

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4 hours ago, PiroSense said:

However, the price appreciation of doing such kind of action is not guaranteed to take effect. The market is still volatile and thus, price trend is not predictable.

But the burning of the currency is sometimes exploited by some speculators, and they buy this currency about 10 days before the burning process, because they expect that the currency price will interact positively with the currency burning process.

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9 minutes ago, SuperCrypto said:

But the burning of the currency is sometimes exploited by some speculators,

It is natural. Investors want to profit, the coin developer wants to avoid high inflation rates.

 

Also, coin burning does not fully guarantee a price increase, though the chances are high, but it could trigger a significant crash after the price reached new highs.

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I think the main goal of burning a currency is to increase its rate quickly and substantially in order to inject greater profits in a short time

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On 12/21/2019 at 9:43 AM, PiroSense said:

It is natural. Investors want to profit, the coin developer wants to avoid high inflation rates.

 

Also, coin burning does not fully guarantee a price increase, though the chances are high, but it could trigger a significant crash after the price reached new highs.

Companies do this for a variety of reasons, such as restructuring the financial architecture, confirming ownership of the assets, raising the price of the offered currency, or any other goals.
In the world of digital currency trading, the amount that is burned is never recovered and there is no way to return it again, since the amounts that are deleted do not have any numbers or address to return it.

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If crypto is burned, then the price will soon prevail, cash in total. The price of a coin does not always rise. 

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16 minutes ago, SCB1234 said:

There's an interesting example of a coin burn involved in the design of HEX coin. This is not an endorsement, but in order to increase the value of the coin over time, the code has linked the burning of the coin with the staking/holding of the coin. If a person takes a snapshot to claim, or stakes their coin for a certain length of time, those coins are burned, increasing the value by the amount that is staked. If a person cashes the coins in earlier than staked, they are penalized and other holders receive those coins. Tying the value of a coin to burning and holding, it uses the idea of burning to increase the overall value.

Also, for example. The process of burning coin and cryptocurrencies (Coin Burn) is similar to the operations carried out by public companies by buying their own shares in order to reduce the number of shares available in the market and raise the rate of growth.

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Well, if that happens, it will only cause partial loss and that's not good. I hope that the existence of crypto grows pure without any interests behind it. the norm of bitcoin is to save people and without transaction costs.

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54 minutes ago, TubigWater said:

I think in smart contract like Ethereum they send token that will be burned in unknown wallet,  or they make the token swap to reduced the total supply. 

You are right that is the only way to burn an erc20 tokens and i think it is the same way in other coins that have their own network they simply send the coin that going to be burned in the unknown and inactive address.

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3 minutes ago, amiraliko said:

By burning those tokes did not in any way diminish the amount of tokens present in the network. but there is very little chance that someone will find private key of contained address.

Burning the currency is sending it to an invalid address that does not have a private key, and the Binance platform every three months burns 20% of its profits and destroys it. Binance is one of the leading companies in burning its currencies

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Я считаю это не знаю что я не, Я в день рождения желаю счастья здоровья счастья здоровья счастья здоровья счастья и все хорошо спасибо большое за то, Как дела что можно было и что я опять на работе я тебя есть яндекс, Ты мне хотелось зарабатывать деньги на работе. 

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All crypto currency 1 coin consist on 0.00000000 digits .when a new project launch they will chose the total supply of crypto coin .By Mining slowly they mine all coins .How to burn coin ? how much coin they want to burn the deduct from total supply and destroy them.

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Cryptocurrency burning is a process of intentional elimination of the coins rendering it unusable. This is done by sending some portion of the coin into the blackhole.those tokens are cannot be recovered,and it will be taken out from the circulation.

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New crrypto project finalize the total amount of their coin.when they want to burn the some quantity of  coin they deduct it from total quantity and destroy these coins.

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On 12/20/2019 at 7:07 PM, SuperCrypto said:

We hear a lot about the term coin burning, and I think everyone knows that it is a way to destroy currencies in order to either reduce inflation for it or to raise its market value. It is an axiom in the world of trade in general that the price increases whenever the supply decreases and the opposite is true.

But technically how is this burning process done?
In summary: There are two ways to do that, either for the coin metallic to be burned a part of it and those who have high-strength computers working on the principle of Proof Of Work (pow) send it to a zero address (0x0000000000000000000000) or an unknown address of the keys.
The second way is for developers to call a specific function that they had prepared at the time of coin creation and to delete the number required to be burned from the main record. The bottom line is that currency burning means (isolating) this amount from the circulating supply chain, either with a view to limiting the rate of currency inflation , Or reduce the current supply of this digital currency.

This is a very interesting thing to know. This information is very helpful. The coin burning is a very bad thing for users. What happens when i hold a coin and it burns then what will happen to my money. It is gone to vain. Or the government will take care of it. I can not get it back. So i face a loss definitely. This is not good. 

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yea burning a coin is always a good thing and whenever a coin is being burned that means the price will go up because there now less coins in the market.

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5 hours ago, Satya31 said:

This is a very interesting thing to know. This information is very helpful. The coin burning is a very bad thing for users. What happens when i hold a coin and it burns then what will happen to my money. It is gone to vain. Or the government will take care of it. I can not get it back. So i face a loss definitely. This is not good. 

Burning a coin may be considered a loss if you look at it from an individual perspective and at the level of temporary personal interest. But according to what I understood, burning a currency is in the interest of the currency and in the interest of all who use this currency and has benefits on the long level.

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When the bill is soaked into the solution, the water molecules soak into the bill while the alcohol remains on the surface. When the match is put to the bill, the alcohol is what actually burns. The temperature at which the alcohol burns is not high enough to evaporate the water and burn the bill. So after the alcohol has burned, the dollar bill is still slightly wet. and the fire goes out.

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On 12/22/2019 at 12:01 PM, iroman01 said:

burning a coin does not guarantee a price increase, although the chances are high, it can cause a collapse. It will make the supply more than the user needs increase, the amount burned Never be recovered

Yes I agree with you does not.

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Bitfinex notes that the decline of the US currency from a six-month peak after the May meeting of the regulator and a weak employment report became a turning point in the trend. Now, the reduction in inflationary pressure in the US has been added. As a result, the weakening of the US currency could stimulate a rally in digital assets.   Where will this rally lead in the medium and long term? There are many answers to this question. Some predict the complete collapse and oblivion of bitcoin, while others insist on a price of $1 million per coin. Recently, Jack Dorsey, co-founder of Twitter (now X) and head of Block, joined the "millionaires' club" after CMCC Crest co-founder Willy Woo. He also expects bitcoin to surpass the $1 million mark by 2030, after which it will continue to grow, challenging traditional fiat currencies. The entrepreneur noted that a very interesting aspect of digital gold is the nature of its ecosystem and how it stimulates collective efforts to improve the network. "Aside from the founding story, the most amazing thing about bitcoin is that everyone [...] who makes any effort to improve it makes the whole ecosystem better, which drives the price up. This is an incredible movement. [...] It has taught me a lot," he explained.   Businessman, writer, and founder of Edelman Financial Services Ric Edelman believes that traditional international investors will do everything possible to diversify their portfolios. And if they all invest at least 1% of their funds in the first cryptocurrency, the bitcoin market volume will reach an unprecedented $7.4 trillion, and the asset price will soar to $420,000. The growth of the market capitalization will be facilitated by spot BTC-ETFs. According to Edelman, they cover a much broader investor base than traditional assets. "In addition, crypto ETFs are incredibly cheap. They are 20-25% cheaper than assets on Coinbase or other crypto exchanges. Plus, they are held in brokerage accounts. Bitcoin ETFs allow for traditional investment strategies such as rebalancing and dollar-cost averaging. There are also tax advantages," Edelman lists the advantages of such funds. "I am confident that bitcoin and ethereum ETFs will have a significant impact on the market in the long run," he stated.   However, this last assertion can be disputed. While BTC-ETFs are a reality, the situation with ETH-ETFs is not so simple. Many expected the SEC (Securities and Exchange Commission) to approve applications for the launch of ethereum funds in May. But this has not happened yet. Moreover, Bloomberg analyst Eric Balchunas and securities lawyer Scott Johnson believe that the chances of approving spot ETH-ETFs are almost zero. In their opinion, the SEC is now considering the possibility of rejecting these funds' launch based on the fact that the applications were submitted with violations, as the fund shares are securities, not exchange-traded commodities. The question of choosing between bitcoin and ethereum confronts many investors. The roles of these two cryptocurrencies differ, and this can significantly affect their profitability. Bitcoin is increasingly seen as digital gold, providing stability during times of economic uncertainty. This concept is supported by the observed post-halving volatility decrease, which was even lower than that of many companies in the S&P 500 index (Fidelity data).   Ethereum continues to push the boundaries of what is possible through technological innovations, including the recent Dencun update aimed at reducing fees and increasing scalability. However, these changes have once again made the network inflationary, nullifying the deflationary trend established after The Merge in 2022. As a result, ETH's volatility remains higher than BTC's.   According to ChatGPT, the artificial intelligence from OpenAI, the choice between these assets largely depends on individual investment strategy and risk tolerance. Bitcoin is generally better suited for investors seeking a relatively safe store of value and those new to cryptocurrencies. In contrast, Ethereum is better for those who believe in the future of blockchain technology. The main altcoin potentially offers higher rewards but also higher risks.   Investor and Eight founder Michaël van de Poppe has already made his choice. He admitted to selling all his bitcoins to buy altcoins. Van de Poppe believes that many of them are undervalued. And as soon as ETH prices start to rise, other alternative tokens will also go up. The expert believes that the altcoins he has chosen are likely to start growing earlier and faster than the market leader, allowing for greater profit than from investments in digital gold.   At the time of writing this review, the evening of Friday, 17 May, BTC/USD is trading at $66,835, and ETH/USD at $3,095. The total market capitalization of the crypto market is $2.42 trillion ($2.24 trillion a week ago). The Crypto Fear & Greed Index has risen from 66 to 74 points but remains in the Greed zone. NordFX Analytical Group   Notice: These materials are not investment recommendations or guidelines for working in financial markets and are intended for informational purposes only. Trading in financial markets is risky and can result in a complete loss of deposited funds.   #eurusd #gbpusd #usdjpy #btcusd #ethusd #ltcusd #xrpusd #forex #forex_example #signals #cryptocurrencies #bitcoin #stock_market   https://nordfx.com/ 
    • Добрый день уважаемые форумчане!   Дуров заявил об успехе Notcoin. Что это значит для криптовалют в Telegram   "В четверг, 16 мая, крупнейшие криптобиржи, включая Binance, OKX и Bybit, провели листинг токена NOT игры Notcoin. Игра существует в виде приложения внутри мессенджера Telegram и с момента запуска в январе собрала более 35 млн игроков, которые конвертировали игровые монеты в токены. На старте торгов цена токена доходила до $0,37, но уже несколько минут спустя зафиксировалась на $0,01. По данным на 17 мая 20:00 мск, NOT торгуется по $0,007 в паре со стейблкоином USDT на бирже Binance при капитализации более $700 млн"   Хотели бы увидеть на нашем сервисе направление с монетой NOT?
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