I've been fascinated by the concept of burning. Why would developers create any crypto with the intention of burning supply? Naturally the answer is to increase the price with the possible aim of making the price increase noticeable enough to be attention grabbing to attract inward investment.
What is burning?
Burning means destroying the supply of the currency. The price increases because the supply decreases and ceteris paribus with the demand remaining the same, the price will no doubt rise. It is accepted that sending tokens to an address that is a burn address is considered burning the supply.
Lots of posts have been encouraging investors to burn their holdings, they state that your contribution of Shiba to be burned will decrease supply enough to cause a price increase. This is true to a very small extent, unless you have a Top 1000 account.
Its a lovely gesture to burn your holding but that's all it is - a gesture. There is a possibility that a mass burning event of many holders may cause a slight increase in price.
A more successful way of burning would be to do what we do with companies with a cash surplus on the stockmarkets, whereby a company will announce every quarter a plan to buy back shares off the market taking those shares out of circulation.
Consistent, regular burning would allow incoming investors to know that the supply is decreasing at a constant rate we could call this the Shytoshi Constant. This would over time have a positive psychological effect as it would ensure that Shiba's price is on a continuous path upwards.
However, this is a centralised approach so this new world of decentralised cryptos may be different or is it?
The developers have the ability to control the currency, a well known rival of Shiba is planning to remove 3 zeros in one go. I personally think this is folly, as we small investors purchase low cost cryptos with the intention of having the dream that one day it will rise in price naturally shedding the zeros, the last thing we want is for the developers to force/fake zero removals.
So back to the matter at hand, do we burn some of our holdings. My answer to you is No. Let me describe how I see burning:
If you have less than a trillion Shiba then you are effectively only taking out a glass of water from an olympic sized swimming pool. Granted there is a small drop in water level but its so minuscule that it won't be noticeable. However, if you are one of the Top 1000 cryptos then it will be like pumping water from the swimming pool with a fire engine and you will have an effect on the price of Shiba.
If there is a mass event where thousands of holders in one go all head to the swimming pool and each take a glass of water out then it will have a small visual effect. But if there are a few pumps there in addition to the thousands of people taking glasses of water out of the swimming pool then you will notice the water level go down. Same principle applies to Shiba.
At the moment Shiba is an investment crypto currency. Therefore mass trillion burns is helpful and useful in order to increase the price. To reach a 100 Trillion supply of Shiba by burning 1 Billion Shiba a day = 365 billion a year would take:
Supply = 549 Trillion
Therefore 549 - 100 = 449Trillion,
449trillion divided 365 billion = 1230 years!
If you were alive I think you would be buying a Starborghini!
BUT in the future when Shiba is mass adopted as a currency the last thing we want to do is to continue this burning. We want Shiba to stabilise as it will naturally go up due to the adoption of it by millions of people.
100m people owning Shiba could each own 10m and that would equal the whole original supply of Shiba before any burning took place. Yes less than 1/3rd the population of the USA each owning 10m Shiba right now could absorb the entire pre-burn supply, we have a whole world out there, India has 1.392 billion, China has 1.4 billion.
Shiba is here to stay and will be a huge community currency, in 1 year it's had almost 1m holders. Within 5 years we might probably hit 100m or even more, once cryptos begin to be adopted by the rest of the population. Let's give you some perspective.
Paypal has 403 million users - imagine if Shiba was accepted by Paypal! Shiba has more community power on social media than Paypal!
https://www.zdnet.com/article/paypal-delivers-strong-q2-adds-11-4-million-net-new-active-accounts/
There are 2.8 billion credit cards users worldwide!
Over 1 billion credit cards in the USA alone!
https://shiftprocessing.com/credit-card/ Shiba again has more social media power than AMEX, than VISA than even MasterCard right now.
Some may think these are established companies but look at how quickly great marketing and ease of use allowed Amazon to become the behemoth it is today... look at Apple... just look at Tesla. Hype & great marketing can get you to the top very quickly and you end up staying there... now look at Shiba we are in the Top 10! This is not some pipe dream, we really are in the Top 10, we are a darling of the cryptos, we are here right now. We need to mobilise this magnificent community into asking these other companies to accept us, this is where the real growth and value is, not more exchanges although exchanges are good too.
If I could rally all the community... I would strategise precision marketing directed at payment solution companies, casinos, retailers, have a Shiba wallet developed not just one but 3-5 with differing user interfaces for each one depending on type of user. Imagine buying something from Craigslist, eBay and meeting the person face to face using a Shiba wallet instantly to pay! Not a Trust/Binance/Coinbase/Crypto.com but our own Shiba branded wallet.
...Petition Lamborghini to accept Shiba - now wouldn't that be amazing for marketing?! Or even have a billionaire buy a Lamborghini from someone with Shiba.
...I would be making weekly friday evening updates to the community so they can be organised better and not have to inundate community forums with rumours and fud. Create country groups who hand off from the various time zones for marketing purposes, so when UK/Europe goes to bed its Australasia taking over the marketing then when they goto bed it reverts with peak traffic when East/West Coast comes online. Constant non stop social media interaction.
The developers have done an amazing job all the way, but Shiba is growing bigger and now needs to impress the bulk of the population who are more used to corporate methodologies. Look at Apple, they still have a thriving community or even Google but they are corporate at the end of the day. Even Bitcoin has a degree of corporate-ness to it, Ethereum definitely has a corporate presentation. We must harness this amazing community and structure it positively. Not allow other coins to be promoted off our hard work as it dilutes us and we need focus. I could go on and on, so happy to chat with all of you amazing people so that we can spread this amazing positive message to the developers and the rest of the Shiba Community.
Now back to the burning:
When the time comes in a few years, you may look back and think why did we need to burn just to make a short term minuscule gain, when in the long term your holding will be worth so much more.
Instead of burning you open another wallet and create a long term savings plan, hide the passcode somewhere out of sight or put it in a safe as you never know what will happen in the future. Imagine for whatever reason things didn't go right, but then you remember that many years ago you put some Shiba away, how would you feel about receiving $5,000,000!
My viewpoint is clear, those who are trillionaires should burn, those who are not should not. You should do your own research and think what is best for you.
Please do read my post about Mindset & Perspective if you haven't already as it may positively surprise you, also how Shiba to $1.
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