WinterCns
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May 09, 2021, 05:27:38 PM |
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Deflationary tokens have one use case i.e. good to create price volatility. With time as supply of coin will go down we will see swing in price of coin. That will defiantly take some time but will happen at least once.
Can you provide an example of such a case with any token? because I myself also very rarely find such things at this time and also in the past, so I need an example so that I can understand it more clearly. Biggest example is bitcoin which started its journey from 0$ and has controlled inflation. Its current price is mainly because of controlled supply and huge community behind the project. If there is no single example that doest mean that no new coin can perform. |
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According to NIST and ECRYPT II, the cryptographic algorithms used in
Bitcoin are expected to be strong until at least 2030. (After that, it
will not be too difficult to transition to different algorithms.)
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forexandcryptoauditor
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May 09, 2021, 05:47:01 PM |
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The basic idea behind having Deflationary model is to keep supply controlled so that demand is increased. This in turn, increased the price of the token. But in recent projects its been observed that totally supply is in billions. Are all the coins are in market? I mean will there be any effect burning tokens with this huge supply?
So it's worthless.
Having said so BTC has shown it a success and every year we see the result within halving event.
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olabiyijummy02
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May 09, 2021, 06:17:50 PM |
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What I don't understand is some project that perform pointless token burns for example "Base Protocol" this is a project that I invested in and after a few weeks of listing, they perform token burns occasionally. I just find out that the tokens my wallet kept reducing and the team said they were doing some token burns which is pointless my opinion because this is not increasing the value of the tokens and it is not increasing my stake in the project.
I believe if it token burns is to be effective, it should be done on tokens are yet to be mined reducing the total circulating supply and not the tokens that are already owned by investors
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kenelmark
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May 09, 2021, 06:24:05 PM |
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Biggest example is bitcoin which started its journey from 0$ and has controlled inflation. Its current price is mainly because of controlled supply and huge community behind the project. If there is no single example that doest mean that no new coin can perform.
Yes, that is true, because basically all new Altcoins always see examples in Bitcoin because he was the first to be born into cryptocurrency so that he has become the king of coins in cryptocurrency from the past to the present. |
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WinterCns
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May 10, 2021, 07:36:32 PM |
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Biggest example is bitcoin which started its journey from 0$ and has controlled inflation. Its current price is mainly because of controlled supply and huge community behind the project. If there is no single example that doest mean that no new coin can perform.
Yes, that is true, because basically all new Altcoins always see examples in Bitcoin because he was the first to be born into cryptocurrency so that he has become the king of coins in cryptocurrency from the past to the present. And there are many examples of alt coins that have performed well. We cant keep on saying whether a coin can perform or not based on our personal judgement. |
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kak uli
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May 10, 2021, 10:51:04 PM |
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If it refers to the actual definition of deflation then I think if the deflation level of a token is high it means that it is necessary to avoid it and do not invest in it, the reason is because it will have a negative impact on your investment or assets in the future.
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WinterCns
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May 11, 2021, 06:40:11 PM |
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Those who have invested in BOOM 4 to 5 days back, got 400% up in there investment. What else do you want from a coin? Its now among top 1000 cryptos at CMC. Way more to go BOOM.
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Adreman23
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Sugars.zone | DatingFi - Earn for Posting
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May 11, 2021, 07:18:57 PM |
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Deflation is the process to decrease the supply and this is the opposite of inflation which increases the supply of tokens. Token burning or deflation IMO is the way to attract investors to hold their token because they think that when supply decreases and when demand increases the price of the token will also increase exponentially. But it's even better if the token has other usecases in real world, not just deflationary token.
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kenelmark
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May 12, 2021, 09:02:38 AM |
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And there are many examples of alt coins that have performed well. We cant keep on saying whether a coin can perform or not based on our personal judgement.
That won't be a problem for anyone, but you can definitely tell which coin is currently performing really well, so that everyone can make their own research on each Altcoin. |
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WinterCns
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May 12, 2021, 11:04:22 AM |
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And there are many examples of alt coins that have performed well. We cant keep on saying whether a coin can perform or not based on our personal judgement.
That won't be a problem for anyone, but you can definitely tell which coin is currently performing really well, so that everyone can make their own research on each Altcoin. In my opinion BOOM is the one that is performing exceptionally well. Gone up by 400% and still going up. It was already listed on too many exchanges and was attracting decent volume for many months. Any legitimate project with clear use cases can go up. |
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SeaSoul
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May 12, 2021, 11:33:30 AM |
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If a coin is purely deflationary you will later on run into trouble regarding the functionality of the economics. Nobody will use it to transact because holding and only holding is the holy grail. If that is the case and everyone's best decision is to hold, who is going to use it and for what? You need to have a way out for that problem unless you don't care and just try to sell first.
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laredo7mm
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May 12, 2021, 01:37:23 PM |
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If a coin is purely deflationary you will later on run into trouble regarding the functionality of the economics. Nobody will use it to transact because holding and only holding is the holy grail. If that is the case and everyone's best decision is to hold, who is going to use it and for what? You need to have a way out for that problem unless you don't care and just try to sell first.
Some people think that burning some percent of coins from every transaction will add value to their coin because supply is reducing. But think like an investor's perspective. Will you invest such a coin where you will lose money in every transaction? what are the benefits of it in long term. If a project thinks that it has too much coin in circulation then it needed then just burn some of it. Why investors will do that by burning their own money! |
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Galley
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May 12, 2021, 03:00:46 PM |
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It seems to me that such coins have no future. What is their point if they are burned with each transaction? Will everyone keeps them? And what are they for then, if they will not work. These are not works of art that have been gaining value over the centuries.
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Looper_U
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$CYBERCASH METAVERSE
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May 12, 2021, 04:11:02 PM |
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Most deflationary tokens and coins are complete nonsense, we've seen too many examples of failed deflationary tokens because all they have to offer is claiming scarcity due to burn off of tokens supply whenever transactions are been made on the blockchain, this is a whacked use case honestly
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XinZang
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May 13, 2021, 07:37:58 PM |
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In crypto no pain, no gain. The irony is that while we keep on discussing coins they take on there biggest bull run. Same happened with BOOM (a deflationary token), it was a dead coin, shit coin bla bla but it jumped 400% up in one day. Giving highest return to its hodlers.
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WinterCns
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May 13, 2021, 07:43:29 PM |
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If a coin is purely deflationary you will later on run into trouble regarding the functionality of the economics. Nobody will use it to transact because holding and only holding is the holy grail. If that is the case and everyone's best decision is to hold, who is going to use it and for what? You need to have a way out for that problem unless you don't care and just try to sell first.
Bitcoin till date is mostly seen as an asset of investment rather then something we can use for daily living. BTC didnt reached at current spot straight away rather took years. deflationary concept is new and will took sometime to be accepted, though I am surprised to see its bullish trend. |
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kenelmark
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May 17, 2021, 01:39:53 AM |
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In my opinion BOOM is the one that is performing exceptionally well. Gone up by 400% and still going up. It was already listed on too many exchanges and was attracting decent volume for many months. Any legitimate project with clear use cases can go up.
BOOM is ranked 977 and it is almost close to 1000, how can that be good, even though it has been pumped up to $ 0.01934, but that price is only temporary, and those who buy at that price, now they are already experiencing losses even though it is not deep a very large number, and one more thing that the volume of BOOM tokens on the MXC.com exchange is still very low and on the other exchange (AEX) is still in the question mark category, so how can you say that kind of token is good?  |
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SeaSoul
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May 23, 2021, 11:58:32 PM |
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Deflationariy tokens will have their place especially in times where w are looking at potential inflation numbers that can almost be as high as they never have been before. Or maybe not as high as we have seen in the past, but definitely inflation numbers that could be close to historical highs.
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terrific
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May 24, 2021, 08:23:50 AM |
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They are worthy to invest but you need to DYOR for it.
The signs could be good as easy to find like those tokens or coins that have a consistent burning of supply.
It's lessening the supply in the circulation which will dramatically increase the demand and as well as making it to become scarce.
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MgoSgo
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June 06, 2021, 04:10:25 PM |
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They are worthy to invest but you need to DYOR for it.
The signs could be good as easy to find like those tokens or coins that have a consistent burning of supply.
It's lessening the supply in the circulation which will dramatically increase the demand and as well as making it to become scarce.
As a senior member will you accumulate these coins that are always going down in supply? I regret not buying deflationary coins before this bullish season and I think now the party is over or we have to wait for next bull season to arrive. |
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