It will not effect the gun at all and the flame ball you are talking about isn't really that apparent on a real gun and are usually pretty small, what i am getting at is their is a bigger muzzle flash using blanks then on a real gun(that explains the large muzzle flashes on the movies). Also in America(because i don't know where you live) it is illegal to remove the orange tip because it signifies it is not a real weapon that can fire real bullets, so find out if it legal where you live.
The legality of this comes into question as the orange blaze is in accordance with Federal Law. The blank gun was sold as such and making 'modifications' can get you in some pretty steep trouble.
Were do the company's buy the ammunition who sell pulled bullets and powder?