Coin Burning vs. Stock Buybacks
Think of coin burning like companies buying back their stock. So often, an ominous sign is only to keep their stock prices up and has nothing to do with growth, development, or prosperity.
Inflation is good when it combats the effects of deflation, which is often worse for an economy. When consumers expect prices to rise, they spend now, boosting economic growth. An essential aspect of keeping a reasonable inflation rate is managing expectations of future inflation. QUAD 4 is when growth slows and inflation slows, known as deflation. (traditionally not suitable for the crypto industry)
Inflation is suitable for a growing company, project, coin. Look at how it impacted the stock market, crypto/tokens that went from pennies to thousands. When a company/crypto the stock market heats, inflation causes awful things. As long as there’s a cap in distribution, innovation, prospects, and network growth, you naturally curb inflation. Hence printing money when needed is not suitable for stability, development, or markets.
Just change Diesel K! To whoever believes in coin burning. 🤪 By the way, Charles sends his love, not really. I don’t know him personally. 😆
Cryptocurrency ‘Burning’: Can It Manage Inflation?
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