Nicolo
Mon Jul 08 2024
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5 answers
888
Does burning cryptocurrency increase value?
Could you elaborate on the concept of 'burning cryptocurrency' and its potential impact on value? Many in the crypto community seem to discuss this practice, but there seems to be a lack of clarity on whether it actually raises the value of a particular token or cryptocurrency. Does the process of burning coins involve removing them from circulation, thus reducing supply and theoretically increasing demand? Or is it a more symbolic gesture that doesn't necessarily correlate with an increase in value? What are the key factors to consider when assessing whether burning cryptocurrency will lead to an increase in value?
