I'm interested in the different ways in which bitcoin can be burnt. I can see three ways:
- Send coins to a 'made-up' address. There's no way to distinguish it from a real address (so the transaction will not be rejected), except that no-one has the private key
- Send a de minimis amount (e.g. 1 SAT) to an address which already holds coins. These will get 'overwritten' and thence lost
- Begin an output address with OP_RETURN
Both (2) and (3) demonstrate that coins are destroyed. (1) relies on trust.
Firstly, are the above descriptions accurate (and am I using terminology correctly)? Secondly, are there any other way of destroying coins? Finally, in reality do either (2) or (3) represent a material loss of coins?