Why would anyone send BTC to 1111111111111111111114oLvT2

hermanhs09

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Quote from: pandalion98 on June 12, 2016, 05:09:01 AM

I've recently read a thread (https://bitcointalksearch.org/topic/rare-address-hall-of-fame-90982) and saw this address. I checked it out and it seems fresh transactions are still slowly trickling in.

Why would anyone send BTC there? Why are there new transactions on that address?

People are burning their bitcoins, pretty sure.

They could be starting up a new altcoin that they have launched, or they could just be doing this for fun. Nobody really knows however based on the trickle of transactions it's probably the former.

7788bitcoin

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No one has the private key to the address so any amount going to this address is going to stay there almost forever, because the chance of finding the private key is (close to) 0.

Some people just want to do something different. Anyway, the 52 BTC is considered gone forever.

RealBitcoin

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Quote from: MingLee on June 12, 2016, 08:47:02 PM

It's like artificial scarcity; people choose to burn some of what they have for a potentially greater return later.

It's not artificial scarcity, it's real scarcity.

Artificial would be something shady or dishonest, like a company withholding some assets and not disclose how much they have.

But in bitcoin, it's all public and transparent, the scarcity can be 100% proven, and it's real.

MingLee

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Quote from: X-ray on June 12, 2016, 08:43:26 PM

Quote from: RealBitcoin on June 12, 2016, 08:33:22 PM

Quote from: shinratensei_ on June 12, 2016, 08:25:43 PM

Quote from: RocketSingh on June 12, 2016, 05:20:31 AM

Quote from: pandalion98 on June 12, 2016, 05:09:01 AM

Why would anyone send BTC there? Why are there new transactions on that address?

This is called Proof of Burn.

Proof of burn.Can you explain about Proof of Burn? I never heard this before. but I'm interested to know it and add it on my knowledge.

Thank you before.

It means that you send BTC there forever that you cant get back.

It's called "burning" as in destroying that bitcoin because it cannot leave from there. I rather call them black hole addresses.

So, What usefulness Proof of burn?. and why some people do this activity. Does only to waste their bitcoin or have another intention from that. Thank you for your explanation.

It's kind of like showcasing that they destroyed that quantity of Bitcoin, so that the value of Bitcoin might be adjusted later to make up for the lack of 52 BTC that had been sent to that address.

It's like artificial scarcity; people choose to burn some of what they have for a potentially greater return later.

RealBitcoin

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Quote from: X-ray on June 12, 2016, 08:43:26 PM

So, What usefulness Proof of burn?. and why some people do this activity. Does only to waste their bitcoin or have another intention from that. Thank you for your explanation.

By locking the coins away forever, it decreases the amount of coins in circulation.

In economics there is a proven theory that the smaller the monetary velocity, the higher the value for that currency.

So by locking away coins forever, it makes the bitcoin price go up.

X-ray

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Quote from: RealBitcoin on June 12, 2016, 08:33:22 PM

Quote from: shinratensei_ on June 12, 2016, 08:25:43 PM

Quote from: RocketSingh on June 12, 2016, 05:20:31 AM

Quote from: pandalion98 on June 12, 2016, 05:09:01 AM

Why would anyone send BTC there? Why are there new transactions on that address?

This is called Proof of Burn.

Proof of burn.Can you explain about Proof of Burn? I never heard this before. but I'm interested to know it and add it on my knowledge.

Thank you before.

It means that you send BTC there forever that you cant get back.

It's called "burning" as in destroying that bitcoin because it cannot leave from there. I rather call them black hole addresses.

So, What usefulness Proof of burn?. and why some people do this activity. Does only to waste their bitcoin or have another intention from that. Thank you for your explanation.

RealBitcoin

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Activity: 854

Merit: 1009

JAYCE DESIGNS - http://bit.ly/1tmgIwK

Quote from: shinratensei_ on June 12, 2016, 08:25:43 PM

Quote from: RocketSingh on June 12, 2016, 05:20:31 AM

Quote from: pandalion98 on June 12, 2016, 05:09:01 AM

Why would anyone send BTC there? Why are there new transactions on that address?

This is called Proof of Burn.

Proof of burn.Can you explain about Proof of Burn? I never heard this before. but I'm interested to know it and add it on my knowledge.

Thank you before.

It means that you send BTC there forever that you cant get back.

It's called "burning" as in destroying that bitcoin because it cannot leave from there. I rather call them black hole addresses.

shinratensei_

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Quote from: RocketSingh on June 12, 2016, 05:20:31 AM

Quote from: pandalion98 on June 12, 2016, 05:09:01 AM

Why would anyone send BTC there? Why are there new transactions on that address?

This is called Proof of Burn.

Proof of burn.Can you explain about Proof of Burn? I never heard this before. but I'm interested to know it and add it on my knowledge.

Thank you before.

RealBitcoin

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Activity: 854

Merit: 1009

JAYCE DESIGNS - http://bit.ly/1tmgIwK

To lock away coins there for eternity.

It is very good and many people should send there the coins they dont need.

The less coins are in circulation, the more BTC is worth.

RocketSingh

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Quote from: pandalion98 on June 12, 2016, 05:09:01 AM

Why would anyone send BTC there? Why are there new transactions on that address?

This is called Proof of Burn.

pandalion98

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I've recently read a thread (https://bitcointalksearch.org/topic/rare-address-hall-of-fame-90982) and saw this address. I checked it out and it seems fresh transactions are still slowly trickling in.

Why would anyone send BTC there? Why are there new transactions on that address?

Topic: Why would anyone send BTC to 1111111111111111111114oLvT2 (Read 970 times)