Questions tagged [increase the price]

BonsaiStrength Wed May 15 2024 | 5 answers 1455

I've often heard about the practice of 'burning coins' in the cryptocurrency world. Could you please explain if this action actually leads to an increase in the price of the coin? It seems like a counterintuitive concept to me, as burning coins would seemingly reduce the supply, but I've also heard arguments that it can somehow drive up demand. Could you clarify how this works, if indeed it does? And if burning coins does indeed increase the price, are there any risks or downsides to this approach that investors should be aware of? I'm really curious to understand the mechanics behind this phenomenon.