How the currency being burned?

[SuperCrypto 7193]

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.

[SuperCrypto 7193]

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.

[tienda 8776]

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. 

[PiroSense 2681]

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.

[sdsonjoy50 886]

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

[SuperCrypto 7193]

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.

[PiroSense 2681]

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.

[Thekingcallme 1975]

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

[SuperCrypto 7193]

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.

[bliznec 22268]

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

[SuperCrypto 7193]

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.

[Fatihgani12 348]

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.

[SyntaxEr. 709]

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.

[SuperCrypto 7193]

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

[Xweigan 12]

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. 

[mani982 286]

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.

[bentayebsalah 2280]

The currency is burned if it accepts the burn by modifying its programming record and adjusting its quantity

[Ms.o 3322]

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.

[mani982 286]

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.

[CryptoLover21 0]

Currency buring mean sending few % or part of their tokens / coins to a  address  with help of smart contract address 

[Satya31 865]

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. 

[duncun007 3577]

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.

[SuperCrypto 7193]

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.

[rajonmia 181]

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.

[tienda 8776]

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.