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So, what is crypto coin burning? Cryptoburning is a process where a person sends coins to a wallet that can only receive them. The process renders the wallet void, and the coins that were sent cannot be traded or removed. The burning process is not without risks, and investors should use it with caution. However, when done correctly, coin burning can yield positive results.

Burning is a common activity on the cryptocurrency network, and its purpose is to help keep the network flexible. Those who burn coins are rewarded by other participants who mine on the block. This is a necessary process in order to keep the network dynamic and maintain a healthy balance between new users and early adopters.

Coin burning is not a new idea, but it has gained popularity in the recent past. For instance, ETH is being burned at a rate of 3.17 ETH every minute, which equates to half a million dollars per hour. In the same way, token burning is similar to a company buying back stock. It gives shareholders a return on their investment, allowing the company to get the funds that were originally invested.

As cryptocurrency prices fluctuate, the burning of coins can help maintain the demand and supply chain. This can prevent inflation and hacking activities by keeping the supply of coins stable. In addition, burning is an effective means of preventing the creation of fake coins, allowing new users to participate in the ecosystem and benefit from the increased demand.


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DISCLAIMER: I am not a financial advisor nor a CPA. These videos are for educational and entertainment purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. I am only sharing my opinion with no guarantee of gains or losses on investments.


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