I found a video perfectly showcasing what a coin burn does and what happens after it is done. There seems to be a lot of misconception of what it actually entails. Yes…you do actually wipe out coins and a large amount (well any amount small or big) all at once.
Binance (which we all know of) does a quarterly burn of coin (which is amazing) and they happened to make a video showcasing it. Notice the total market supply instantly drop.
This is the process of burning coin. Justin did retweet a tweet mentioning a total supply burn in Q1 2018. Go look on his twitter feed from late December. What we don’t know is…if it’s a circulating supply burn or a total supply burn. My guess would be total supply. that is my guess. I hope it’s a circulating supply burn. That is the part I don’t know or anyone knows at this point.
This is why people are hyped about this event because it would pretty much increase the price just on this event alone. How much? Well that depends HIGHLY on the percentage burned. The more burned, the more price increase. How quick of an increase? Well that depends if its a circulating supply burn or a total supply burn. Circulating supply burn you would probably overnight see a increase in price (especially if the volume is there and not like how it’s been in January thus far). Total supply burn? probably wouldn’t feel it until a very good amount of time has passed.