Crypto Burning: The Digital Black Hole Explained

Ever wondered what happens when cryptocurrencies get burned? No, we’re not talking about actual fire.

Crypto burning means permanently removing tokens from circulation by sending them to a wallet address that nobody can access – like throwing them into a digital black hole.

When tokens are burned, the total supply decreases. Think of it like a company buying back and destroying its shares – but with cryptocurrency.

Why do this? First, it can increase the value of remaining tokens by making them scarcer. Second, it shows developers are committed to maintaining the token’s value. Some projects even burn tokens automatically with each transaction.

Major cryptocurrencies like Binance Coin and Ethereum regularly burn tokens. In fact, Ethereum burns some of its tokens with every transaction, helping control its supply.

Remember: Burning means permanent removal, reduces supply, potentially increases value, and shows commitment to the project’s health.