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RE: Token Burns Can Destroy Value

in LeoFinance3 years ago

I could not imagine that there is a correct and incorrect burning of crypto coins) ... when postage stamps are taken out of circulation, their cancellation, in any case, increases the value of clean postage stamps.

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Besides collection value, I don't see much point in those stamps. Utility-wise, I don't see why you wouldn't just get a cheaper one? If the prices go up that much, wouldn't an alternative just be used instead?

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On this, I cannot tell you anything, because there is some hope, but I would not rely on it as a foundation.

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This is the problem.

Do you really think it's appropriate to compare a collector's item created by a centralized agent... with a decentralized open source product that anyone in the world can clone? Why would the economics of these two things be comparable in any way shape or form? They are completely different systems. The problem is that everyone conflates the systems an assumes all the principals from one translate to the other.

Postage stamp cancellation is the great-great-grandfather of burning crypto coins in order to increase the value of the remaining clean circulation. The systems are different, and the principles of decentralized systems are based on something, they did not appear out of nothing, at least on the experience of past generations.
I want to add that postage stamps are not just a collectible, they are only postage stamps canceled on order, but a strict accountability payment document that is printed by mints.

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