What is Cryptocurrency Burning || 10% to @tron-fan-club
Today i will Discuss with you What is Cryptocurrency Burning. I always try to share with everyone what I know everything about blockchain or Cryptocurrency. So in its continuation today I will talk to you briefly about What is Cryptocurrency Burning. i Hope you like my today's post.
Burning is a very important issue in cryptocurrency, and cryptocurrency burning is a process by which some coins or tokens are burned or reduced from the circulation supply of a coin or token. And this cryptocurrency burning is basically a process. Cryptocurrency is burning through the company that develops the cryptocurrency.
To burn tokens or coins in cryptocurrency, the amount of tokens that are sent to a burner wallet (burner or eater addresses) is the amount that the token or coin developers have decided to burn. And when this burner wallet (burner or eater addresses) is a kind of wallet address, where there is no type of private key.
We know that every type of wallet has a private key, the private key we use to make transactions. We use our private key to enter our wallet and we can complete all our transactions. This private key is the only way to transfer or maintain our tokens or coins. If the private key is lost then we can no longer get tokens or coins.
And the burner wallet (burner or eater addresses) does not have any private key, so the amount that is transferred to the burner wallet, they can never be transacted later. These are lost forever, the tokens or coins that will be traded in this burner wallet can never be traded. So it is said that tokens or coins will be burned forever, will be erased forever, will be lost forever.
When a token or coin company or developer thinks they will have a token or coin, the amount of tokens or coins they wish to burn in the burner wallet (burner or eater addresses) is sent to this address. And these are lost forever. One of the purposes of burning a token or coin is to increase the demand for that token to its users.
Because when it is burned, the human demand for it will increase a lot more and the demand will increase and its price will increase a lot more. So we see that when a token or coin is burned, the price of that token or coin automatically increases a lot. Especially when the news of this burn is given publicly, the price goes up a bit and till this burn is completed. Even before that, prices kept rising. Because the supply from here will be much less, so people's interest and demand for it increases.
In my opinion,I believe everyone should have a basic knowledge of what coin burn is. You have given a very good lecture. Thanks for sharing.
TWITTER SHARE
https://twitter.com/KawsarH67898725/status/1527889946455216128
Yeah, it's very true what you said, so before the burning occurred, then we must know it first, so that we will not suffer losses.
Thank you for sharing.
You have done so well in explaining currency burning. It is indeed a sure of of increasing scarcity of a crypto asset.
Thank you for sharing.
Wow brother you have done so well in explaining currency burning. Thanks for sharing
I didn't have a good idea about it. But thank you for pointing out Burning in a very nice way in your post
Gave a very good idea about the current situation of cryptocurrency. Which I like very much brother. Thank you for sharing such beautiful information with us.
A very detailed information you have shared. Thanks for this piece. Greetings