Crypto is never consumed, but kept in circulation?

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Crypto is never consumed, but kept in circulation?
When trading, mining, purchasing with crypto, does it stay in circulation, (besides storage)? It doesn't get consumed, dwindle to nothing. Or is that called Token Burn? I'm an idealist and Utopic, so I ask if this is the aim, to share energetically for as long as computers exist? Probably too philosophical.


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Hi Kitty!

For cryptos like bitcoin, the coins remain in circulation. Even the ones you lose or are lost to un-held addresses. Since the coins aren’t technically stored as coins, but more like transactions and differentials of it so the coins aren’t quite lost anywhere along the way. Some blockchains offer the functionality of burning coins. Only in those cases is it possible to reduce the circulation through burning them. I hope that helps!

Hi Kitty,
Mining in most systems like Bitcoin and Ethereum are where new coins are minted, which inflates the supply over time. There are ways to burn coins in these systems, but these are not typical functions of the main blockchain platforms. Some integrate token burn mechanisms to deflate currency or to manage governance power within the network, but it is usually through a specific action that removes the coin from all circulation, and not simply through regular transactions.

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