'Burning' coins: how Bitcoin Cash became the world's hottest cryptocurrency

Bitcoin Cash is the hottest cryptocurrency around right now for more reasons than you may imagine.

The offshoot of the biggest digital token has surged about 25 per cent since Friday, in part because Antpool, one of the largest mining groups, is “burning” a portion of the coins it receives in exchange for solving the complete mathematical puzzles that serve as the backbone of the network, potentially reducing supply and driving up the value.

The manoeuvre is the latest salvo in an escalating battle between backers of Bitcoin and Bitcoin Cash, which was spun off last year. Through a war of words playing out on Twitter and Facebook, some of the largest holders of both cryptocurrencies are attempting to influence the coins’ prices after seeing significant losses since last year.

“Antpool has burned $US12 ($16) worth” of Bitcoin Cash a day, said Kyle Samani, managing partner at the crypto hedge fund Multicoin Capital, in an email. “This was purely a PR game so they could say ‘reducing supply.”‘

Antpool, whose users’ computers confirm 8.2 per cent of all Bitcoin Cash transactions, announced April 20 on Twitter and Facebook that it will voluntarily “burn” 12 per cent of the coins it receives. The mining outfit is sending a portion of the fees it receives “to a black hole address.”

Bitcoin Cash has the advantage of lower transaction fees and faster transaction times. The more widely used Bitcoin has been testing a new technology, called Lightning Network, that, if deployed at scale, could significantly cut Bitcoin Cash’s advantage, Lucas Nuzzi, a senior analyst at Digital Asset Research, said in an email.

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