If they are burnt for no reason, then this makes sense I guess. But if they are burnt in some sort of utility or value proposition, then that surely must result in an increase in value?
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If they are burnt for no reason, then this makes sense I guess. But if they are burnt in some sort of utility or value proposition, then that surely must result in an increase in value?
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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Can you see a good reason to take money out of your pocket and burn it?
Please share that with us.
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very good point.
I don't think anyone would have an answer for this unless they are a psychopath.
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@themarkymark burns the stem geek tokens and they are one of the strongest tokens on hive-engine
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If the network gives you a utilitarian outcome from doing so. Eg. if you could burn Hive for a temporary boost to RC's so that you can make more transactions, as one simple example.
this one wins the internet today.
Okay so you burn the tokens to mint some NFTs, and the NFTs end up being worthless. Now your userbase is pissed and a percentage of them ragequit. There are many ways to mess up a token burn. The burn has to create more value then it destroys. That's what people don't get. They assume it never destroys any value.
Most NFTs don't really have value right now anyways. So I don't know why people just buy into it when most of it doesn't have much utility. It sounds like most of them are just fixated on price.
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That makes sense. Appreciate your help to understand Tokenomics 101 :)
I envy you .... You understand this.
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To be honest, it's too confusing for me, apparently, to be able to count quickly, this is not all mathematics)
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Thanks for this... I always think Burning equals Mooning :)
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