Topic: Distinguishing Between Bitcoin Halving And Crypto Burn (Read 421 times)

While sometimes the terminology used on this market can be confusing, this can be solved relatively quickly if those that are interested in learning more about the market actually went through the trouble to look for that information by themselves and find out the truth, however they rely on what they read on social media and there are many people out there spreading misinformation about the inner workings of this market, so it is not that surprising that something as simple as what it is exposed on the OP is not understood by them.

Really important distinction here. Cause some newbies are out there thinking that the halving is going to automatically make all their bitcoin holdings very valuable by dividing the whole supply in half, which in itself is already contradicting from the fact that the bitcoin supply is supposed to be immutable. I've been in the same boat of misinformation in my first year of stay in the crypto world too, and the only thing that I regret, is that no one's able to inform me or everyone who's not much aware of what the halving really entails.

Good job on you and I wish more people are this generous with information to newbies, don't get me wrong, we're all as generous as possible here but I feel like sometimes our efforts are invested elsewhere with all these topics and stuff, when important talks like these aren't given that much notice.

It would be a serious misunderstanding if anyone think halving and burning are the same. Halving is for block reward and will affect future (new) supply. Burning will affect existing and circulating supply by sending coin or token to a burn address and burn it.

Burning is popular with altcoins because they usually are created with very high total supply. Then their developers decide to do like Buy back and burn to reduce total supply in order to make investors feel their coins become more valuable with lower total supply. In fact it does not change much because value of a token depends on its use cases and utility, not only by buy back and burn.

Great breakdown! It's crucial for newcomers to understand the distinction between Bitcoin halving and crypto burning. Your clear explanation highlights the key differences: halving reduces new supply, while burning decreases the existing supply.

The automated nature of Bitcoin halving every 210,000 blocks versus intentional burning by developers is a crucial point. Both mechanisms aim to create scarcity, a factor often linked to potential price increases. It's fascinating how these strategies align with the broader goal of scarcity in the crypto space.

For those grasping this concept early, it provides valuable insight into how these mechanisms impact the economics of specific cryptocurrencies. Your post serves as a helpful guide for those navigating the complexities of the crypto world. Well done!

When I started wading into Bitcoin and cryptocurrency, mining and burning are two of the most popular terms and there is no confusion on my mind what are these things and they are not the same nor are they interchangeable. Burning is making less of the coin or token supply while halving refers to the mining rewards which in every four years will be lessened by 50% hence the halving term. Interestingly, both burning and halving can have positive effects on the platform doing it...and in the case of BTC can be the trigger for another big bull run to possibly reach the peak in 2024 or even 2025.

Understanding Cryptocurrency Burning
Cryptocurrency users are assigned an address used to send and receive coins. You can think of the address like an email address. You can send and receive emails from that email address anywhere you have access to it. A cryptocurrency address is similar—the cryptocurrency network recognizes that address as yours and uses it for transactions. This is your wallet address.

Bitcoin halving is connected with the design and based on that, it is kind of process
through which the new bitcoin entering the market circulation is controlled.

Different reasons that make bitcoin halving effective are the

• The supply gets controlled and the same helps bitcoin being a deflationary asset.
• Through this process the value of bitcoin gets maintained.
• As the reward gets decreased the miners need to modify things.
• The price gets impacted as the supply gets limited against the increasing demand

Crypto burn process is completely centralized process in which tokens were sent to a wallet
that can't be accessed. This is completely different from the uniqueness of halving.

Process involved in crypto burn

• We've got automatic and manual way of token burn.
• This practice is just to stabilize the value and the market.
• Price appreciation is the major motive which won't be long term in most cases.

Bitcoin is built with a standard that differentiate it from all other coins and token. I think it will be proper if other cryptocurrency can follow same process(that's for those who have pure intention for creating the coin). The crypto burn mechanism is just deceptive means of exploiting investors funds. Early investors gain over later investors who buy after the burn. Base on research, I have come to conclude that most shitcoins are designed for profit purpose without the users interest in the mind.

This is why all shitcoins are shit.... because it is so easy for these developers to manipulate the supply. This is not something that will easily happen with Bitcoin (BTC) ...because not a lot of the Bitcoin (BTC) miners will accept that. 

We saw how hard the fight was with smaller changes in the past, now just imagine what will happen if the Bitcoin (BTC) developers wants to push an increase in the supply.   

Token burning is not temporary. It’s sent to an address such as 0x00000000000 which is impossible to recover. The tokens are lost forever. You won’t get them back in the future.

With coins like bitcoin there is no burning going around unless it’s by accident. Someone accidently sends to an address that doesn’t exist.

The irony on this token burn mechanism was the team aims to decrease the circulating supply of the token to boost the price yet they always set the total supply of their tokens to Billions or Trillions that will make the circulating supply enormous during the token minting.

It’s nonsense to burn tokens just to reduce the supply while they can initially lower the token supply during minting before they distribute it to the holders. Token burn feature is scam feature nowadays so that there will be a price boost due to speculation while the team reserve tokens grows significantly and slowly exit on liquidity from holders.

Crypto Burn is often only a marketing trick done by Altcoins because it can be changed for most Altcoins and it is not a steady procedure.
While for Bitcoin, it is implemented in Bitcoin's code, it's verifiable and already determined. Every 210.000 mines Blocks, Bitcoin miner's block reward is halved.
Bitcoin is predictable, while most Altcoins are a big gamble due to various factors.

Also crypto burns will affect the project whose burning their coin but hardly would it affect the crypto-currency market in general unlike Bitcoin halving that takes four years but still has been highly anticipated by the crypto-currency world since the last one happened going to this one taking place next year. The Bitcoin halving comes with it high hopes of the crypto bull run and the FOMO is usually high at this time.

That the first crazy DeFi summer when YFI got priced at almost 70k USD.

It was not a scam though. Most of these DeFi tokens work the same way. They are supposed to give you a say in setting up the rates of interests and other decisions to be made about the TVL. A handful of whales manipulate the market by buying up most tokens when they are cheap and its the later buyers (post the airdrops) that used to create the frenzy to own a piece, thinking that buying 10 tokens would give them some say when someone else had 1000s of those.

The basic concept behind DAOs isn't really a scam per se, yet it suffers from the same problems that socialism suffers from. When everybody is equal, nothing actually gets done.

Yeah, most likely those who are familiar with 'crypto burn' might be dealing more on the altcoin side (no offense to them). But for members here who started with bitcoin first, they know what bitcoin halving is and most likely experience it recently.

So I guess if we are in this board, then I don't see any confusion. On the contrary, those bitcoin enthusiast might have heard this term for the first time. But I doubt that they are going to be confused by it. But thanks to the OP for bringing that up.

This is my very first time hearing that someone is confused between Bitcoin Halving and Crypto Burns. In my opinion the term is really self-explanatory. Halving with Burns is very different activity, and I don't think there is any similarity between the mechanism whatsoever. Crypto burns will reduce the total supply and sometimes also reduced the circulating supply if the coin that will be burnt is obtained by buying them back from the market, this activity will instantly and automatically affect the scarcity of the market, and this could be considered as market manipulation for some people. While Bitcoin Halving is not reducing Bitcoin supply, neither the total or circulating supply, the halving activity will not directly affect the scarcity of Bitcoin, if the demand of Bitcoin is low then the halving itself wont make Bitcoin become more 'scarce'.

Buy back and burn token programs are non sense to create value of a token. It's solely marketing initiative.

Thinking about those programs like their developers are free to code and set any amount of token total supply they want for a token. No restriction on what is the maximum total supply when they code so if they want their token looks to be scarce in total supply, they can set it low. If they want to make it is not scarce, they are free to set it high.

There are two strategies: set it low at start to make hype that if investors are slowly, they will miss the train to get rich; set it massively high like Shiba Inu and many tokens, then use Buy back and burn programs to burn tokens later.

The second strategy looks odds in my view.
Yearn Finance with its total supply is only 36647 $YFI tokens is an example for a first strategy. You zoom out the chart and will see its price was about $40,000 in 2020 and $70,000 in 2021. It's a most scammiest and most successful scam token in history.

What is the benefit of buring $SHIB?
Yearn finance.

In simple terms the coin burning is the step used by other altcoins to fool out the investors so they can invest more into those useless altcoins and nothing else. Bitcoin halving is the proper mechanism that's implemented in Bitcoin from its launch and it works automatically without anyone's interference. The halving takes places once in 4 years while altcoins can burn their number anytime because they are being controlled by the creators while Bitcoin isn't being controlled by anyone.

Those who look at both terms the same way, I believe, don't really understand it well, or it's based on a misconception. Even the words themselves appear to be self-explanatory. That being said, bitcoin halving helps reduce the reward for miners, as we all know, and this will continue over time until the last block is mined, and there is nothing to be mind out of the block again and no reward for miners as they will have other sources of earning. For the main time, the amount that's to enter into circulation is what's being reduced, but it does not stop there, as they will still enter the same circulation over time as the blockchain continues.
 
But for token burning, which the altcoins use to convince their holders and investors that scarcity is being created, they move a certain amount, which they intentionally created from the very beginning, and they know it's too much for a project yet they created such an amount. At the end, to convince people that it has been moved out of the market, they send the agreed amount to be burned sent to an address that no one has access to. This is token burning, and this same project developer can still mint tokens from no where most times and add them to the market, or sometimes they can do a contract swap and from the old token to another, which will give them the chance to create more tokens.
 
These two are not in any way related, although some newbies might also have the wrong idea about them, which will help enlighten their minds a little bit.

I used to be a newbie but I have never thought of Bitcoin halving and altcoin burns like this. I did not know what they are but a simple effort to search can help me understand what is Bitcoin halving and what is an altcoin burning event.

I also have never heard anyone confused about these terms.

Altcoins are centralized and many altcoins are EVMs with smart contracts that can be used to seize coins in an address, burn it, mint more. Burning events with altcoins are easily but similar to Bitcoin, if you want to burn an amount of coin in circulating and total supply, it's easy.

Create an address, throw away by burning the private key physically, then sending coins to that address, it is burning. Burning is to reduce supply. Bitcoin halving and some altcoins also have their halvings too, are to add more coins in circulating supply. The biggest difference between halving and burning is here.