An effective way to coin value retentionOur world today measures the value of an asset according to its scarcity, the difficulty and cost of obtaining such asset, and the utility it espouses. Gold, silver, oil, gas, and real estate are prime examples of highly valued physical assets whose market prices are generally on the uptrend. That is why the value of currencies are pegged on select assets of these kinds to keep a currency from declining. The only thing that makes it inflationary is the amount of a particular currency being printed, minted, or put out into the market for circulation.Scarcity, too, is the name of the game in cryptocurrencies. By controlling the supply of a cryptocurrency, it is at least assured that its value will not collapse. The number of tokens or coins produced depends on developers\u2019 proposals in the publication of their whitepaper. After the initial coin offering or ICO, Coin Burning is employed to eliminate unsold coins and permanently reduce the number of tokens in the market. It is a measure to sustain the said token\u2019s life by arresting the decline of its value through coin burning.Coin Burning What?Why Coin Burning?There are a number of reasons why almost all active cryptocurrencies employ coin burning.When the number of coins or tokens are reduced, its value goes up.There are cryptocurrencies that have their basis on a Proof-of-Burn principle to generate consensus. Developers, miners, investors, traders, and users concede to destroy a number of circulating coins irrevocably.The economic concept of supply and demand dictates how much a coin is valued. The production limit contributes to a token\u2019s deflationary nature. Contrary to fiat inflation, where central banks can print with reckless abandon, lost digital coins and their permanent number in circulation historically have driven price increases and market presence stability.Coin burning\u2026<\/p>","protected":false},"excerpt":{"rendered":"
An effective way to coin value retentionOur world today measures the value of an asset according to its scarcity, the difficulty and cost of obtaining such [\u2026]<\/span><\/p>","protected":false},"author":0,"featured_media":2796,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/afluxcoin.com\/pt\/wp-json\/wp\/v2\/posts\/3409"}],"collection":[{"href":"https:\/\/afluxcoin.com\/pt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/afluxcoin.com\/pt\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/afluxcoin.com\/pt\/wp-json\/wp\/v2\/comments?post=3409"}],"version-history":[{"count":0,"href":"https:\/\/afluxcoin.com\/pt\/wp-json\/wp\/v2\/posts\/3409\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/afluxcoin.com\/pt\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/afluxcoin.com\/pt\/wp-json\/wp\/v2\/media?parent=3409"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/afluxcoin.com\/pt\/wp-json\/wp\/v2\/categories?post=3409"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/afluxcoin.com\/pt\/wp-json\/wp\/v2\/tags?post=3409"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}