Cryptocurrency and Inflation Mechanisms

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Inflation is one of the major problems in the economy because it can bring negative effects on many aspects of social life. Venezuela is a prominent example with a high inflation rate of nearly 8,000,000% that has had serious consequences in this country. Coin burning is a process where miners and developers remove a specific portion of coins from circulation to control their price. It is a common industry practice to incentivize long-term holding among users, by managing the price through restricting supply. Although crypto has its own advantages to curb inflation, due to the massive development of new projects, including many garbage coins, investors tend to suffer losses.