Polkadot [DOT] is a bad investment because it has unlimited inflation! - page 3.

$anounimus$

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DOGECOIN and ETH are probably some real examples of projects with a successful market but an unlimited supply. DOT may be able to make ethereum-like developments in the future such as the launch of ethereum 2.0. I still believe DOT is not a bad asset to invest in. because the crypto market cannot be determined like the USD or EURO money market.
probably by far, BTC and BNB are the best assets with asset management that will always decrease over time.

Why does it always decrease over time on BTC and BNB ? Isn't every product whose supply is limited, the price will always increase if the demand for it increases every year? because now there are plenty of examples for everyone in the crypto space to see.

Vishnu.Reang

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Yes, because basically any item or coin that has a low supply or a supply that has a limit, it will always be well worth it if the demand for it can be very large, for example like Bitcoin and Ethereum, as well as others.

Cryptocurrency market works in a strange way. During the last 12 months, some of the coins that have appreciated the most doesn't have a supply limit. Ethereum is one example. ETH has no maximum supply. It has a fixed fresh annual supply of 18 million coins. The prices are going up, because the demand is higher than this annual supply. In case of Bitcoin, the principle used is of controlled supply, with the fresh supply getting lower as time passes. And then we have Dogecoin, which doesn't have any sort of control on the maximum supply. Ironically this coin has gone up much more than either BTC or ETH during the last few months.

Billo_

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Quote from: bryant.coleman on June 07, 2021, 08:37:37 AM

But personally, I am not comfortable with coins that don't have a max supply.

Yes, I can agree here 100%. Having a fixed supply should be part of every good coin to make it scarce and a store of value. Bitcoin is very valuable because it fixes inflation even more like Gold. People will like all capped supply coins because it's a good investment.
It's also nice to see Ethereum Devs fixing Ethereum's uncapped supply problem.

MusaMohamed

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Quote from: pawanjain on June 07, 2021, 11:39:46 AM

That should not be the only reason not to hold DOT. Although DOT and other similar coins are inflationary it does still provide a value to it's coin. Apart from that the price keeps increasing every year more than the inflation rate. So we are still in profits if we look at it from monetary perspective. I believe in the long run the team will find out a way to bring the inflation rate down either by burning the tokens or may be something more innovative. For the time being DOT does seem to be a promising coin to hold.

There is belief that Polkadot will be another Ethereum or a better version of Ethereum with less scam projects on Polkadot.
I don't know will Polkadot actually control scam projects better than Ethereum. In another one, Binance Smart Chain has more flexible and strict rules to control and get rid of scam projects.

If Polkadot gets succeeded with this task, it will get mass attention from investors. Then it WI be a very good investment.

pawanjain

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Quote from: Billo_ on June 05, 2021, 11:41:29 AM

I see Polkadot often mentioned as a good coin when people are asking for DeFi plaforms. But Polkadot is not a good coin, I found out after some research.
Please be caution, when you buy coins because coins are often praised and not mentioned about disadvantages.

Here is why Polkadot is a bad coin for an investment:

- Polkadot hat unlimited inflation, means, Polkadot has not a fixed supply where we know how many coins will be produced.

That should not be the only reason not to hold DOT. Although DOT and other similar coins are inflationary it does still provide a value to it's coin. Apart from that the price keeps increasing every year more than the inflation rate. So we are still in profits if we look at it from monetary perspective. I believe in the long run the team will find out a way to bring the inflation rate down either by burning the tokens or may be something more innovative. For the time being DOT does seem to be a promising coin to hold.

Bohdan820

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The Fed also prints money endlessly and that now the dollar will not be the world's reserve currency because of this?
This is certainly a minus, but looking at the tokenomics, you can easily understand that there will be few coins in circulation.
I will still use dot.

dhemasm

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Quote from: Billo_ on June 05, 2021, 11:41:29 AM

inflation

Inflation is bad but I think it all depends on the development of the Network itself and the use case, Polkadot is a Good Coin with an innovative use case but Inflation is one of the drawbacks just like Ethereum even though Inflation continues to happen but is still used to this day because of its strong community. large and spacious with a variety of different use cases. AVAX does have advantages over DOT or ETH but everything can't be instant, There will be a process that occurs before it is accepted in the market as a better "Option".

bryant.coleman

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Quote from: zasad@ on June 07, 2021, 07:23:09 AM

You have the wrong information. In the next 10 years, the developers want to reduce the number of coins to 100,000,000.
That is, about 2 million coins will be burned every year. But these are only plans so far.
In the near future, we should wait for Ethereum 2.0, which will work on a new algorithm and reduce inflation due to the refusal of miner services

This is correct. ETH doesn't have a limit on total supply. Right now more than 118 million coins are in circulation. If you check the ETH page in Coinmarketcap, they have kept the "Max Supply" field as blank, because there is no limit on max supply. The developers claim that they don't need a supply cap (similar to BTC) to prevent inflation. And their arguments have been proven correct so far, with ETH having a higher growth compared to BTC, during the last 12 months. But personally, I am not comfortable with coins that don't have a max supply.

zasad@

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Quote from: Vishnu.Reang on June 06, 2021, 07:37:09 AM

Quote from: tvplus006 on June 06, 2021, 07:19:24 AM

The fact that the coin has an unlimited issue cannot automatically classify it as a bad coin for investment. In the market, it is easier to count coins that have a limited issue than those whose issue is unlimited. For example, one of the most popular coins for investment, which have an unlimited issue, is ethereum.

Who told you that the Ethereum supply is unlimited? For your information, there is a limit on maximum supply at 100 million. Now I know that there are talks, on moving to a hybrid Pos-PoW system, but still I don't think that they will mess up with the maximum supply limit. Because if they do so, then the market cap of Ethereum will crash. The only coin with an unlimited maximum supply that has been doing good is Dogecoin. But even in case of Doge, we need to see whether it will be able to sustain the gains.

You have the wrong information. In the next 10 years, the developers want to reduce the number of coins to 100,000,000.
That is, about 2 million coins will be burned every year. But these are only plans so far.
In the near future, we should wait for Ethereum 2.0, which will work on a new algorithm and reduce inflation due to the refusal of miner services

tvplus006

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Quote from: Vishnu.Reang on June 06, 2021, 07:37:09 AM

Quote from: tvplus006 on June 06, 2021, 07:19:24 AM

The fact that the coin has an unlimited issue cannot automatically classify it as a bad coin for investment. In the market, it is easier to count coins that have a limited issue than those whose issue is unlimited. For example, one of the most popular coins for investment, which have an unlimited issue, is ethereum.

Who told you that the Ethereum supply is unlimited? For your information, there is a limit on maximum supply at 100 million...

Given the fact that you have been registered on the forum for 4 years, you should have been familiar with the ethereum technical document https://ethereum.org/en/whitepaper/, before writing such nonsense. Currently, the Circulating Supply of ethereum is already more than 100 million, and to be more precise - 116,192,012. 19 ETH. You can always see the current figure on the https://coinmarketcap.com/currencies/ethereum

Mika220

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Quote from: speedforce on June 06, 2021, 02:01:11 PM

Inflation is not that really bad, as long as the monetary policy can counter it, or the team and community can keep the value of the coin.
Also, ethereum have no limited supply too, and its work smoothly.

Doge also have no limited supply. DOT young project, but many exchange already listed it. The last one EXMO.

ahmia39

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Quote from: speedforce on June 06, 2021, 02:01:11 PM

Inflation is not that really bad, as long as the monetary policy can counter it, or the team and community can keep the value of the coin.
Also, ethereum have no limited supply too, and its work smoothly.

Ethereum does not have a limited supply, but Ethereum's circulating supply is much lower than Polka. The next Ethereum can only be generated by mining so it will slow down the process of increasing the number of Ethereum.

speedforce

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Inflation is not that really bad, as long as the monetary policy can counter it, or the team and community can keep the value of the coin.
Also, ethereum have no limited supply too, and its work smoothly.

Billo_

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Quote from: fullhdpixel on June 06, 2021, 01:11:43 PM

Quote from: Billo_ on June 05, 2021, 11:41:29 AM

I see Polkadot often mentioned as a good coin when people are asking for DeFi plaforms. But Polkadot is not a good coin, I found out after some research.
Please be caution, when you buy coins because coins are often praised and not mentioned about disadvantages.

For example ethereum is unlimited, doge is unlimited too I think, pancake is unlimited too, these are all getting a huge amount of attention and there is nothing wrong with being unlimited.

WOW, Pancake is also unlimited? Are you sure?
If it is true, we can use Pangolin, it's based on Avalanche and like so much at Avalanche, Pangolin is also capped like Avalanche.

Billo_

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Quote from: Sithara007 on June 05, 2021, 10:37:07 PM

How it can be "unlimited inflation", when the maximum possible inflation is capped at 10%?

10% per year.
10% inflation are added every year to Polkadot, after 10 years, it is 100% inflation.

And 10% per year is very high, Dollar or Euro have an inflation of currently 2% per year. Polkadot has 5 times more inflation.

fullhdpixel

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Quote from: Billo_ on June 05, 2021, 11:41:29 AM

I see Polkadot often mentioned as a good coin when people are asking for DeFi plaforms. But Polkadot is not a good coin, I found out after some research.
Please be caution, when you buy coins because coins are often praised and not mentioned about disadvantages.

I am not here to defend dot because I do not know about it but at the end of the day there are many unlimited ones that doesn't drop. For example ethereum is unlimited, doge is unlimited too I think, pancake is unlimited too, these are all getting a huge amount of attention and there is nothing wrong with being unlimited.

The problem only happens if you are unlimited and there is no request for that token, you can't have a token minted forever without limit while there is nobody willing to buy, ethereum is such a requested thing that it is at supply level that is highest ever, and yet it reached the ATH still after so many years of existence. So, as long as you have requested and people wanting to buy a coin, that is not a problem to be unlimited, all you have to do is fine people who would be willing to keep buying year after year constantly.

hd49728

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Quote from: kenelmark on June 05, 2021, 02:28:44 PM

Yes. It is very much said that Dot is the next generation of Ethereum.

Polkadot tries to replace Ethereum as the best platform for blockchain companies that use smart contracts. Their team are probably unsure about the future of this project and the future growth of it. Then they decide to set the unlimited inflation.

Quote from: zasad@ on June 05, 2021, 02:57:10 PM

Ethereum also has unlimited inflation for now.
10% per year is not critical, given that more than 300 projects are already being tested in this ecosystem.
Inflation can be reduced if the community decides to lower the staking reward.
Endless inflation didn’t prevent even Dogecoin from making X100

Inflation or deflation means something but not means all. A scam team can create a scam project with deflationary farming but the attractive deflation specification can not help it to be good with investors.

Projects if can not bring any new solution for real issues in the world, are useless.

casperBGD

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Quote from: Vishnu.Reang on June 06, 2021, 07:37:09 AM

Quote from: tvplus006 on June 06, 2021, 07:19:24 AM

The fact that the coin has an unlimited issue cannot automatically classify it as a bad coin for investment. In the market, it is easier to count coins that have a limited issue than those whose issue is unlimited. For example, one of the most popular coins for investment, which have an unlimited issue, is ethereum.

Who told you that the Ethereum supply is unlimited? For your information, there is a limit on maximum supply at 100 million. Now I know that there are talks, on moving to a hybrid Pos-PoW system, but still I don't think that they will mess up with the maximum supply limit. Because if they do so, then the market cap of Ethereum will crash. The only coin with an unlimited maximum supply that has been doing good is Dogecoin. But even in case of Doge, we need to see whether it will be able to sustain the gains.

this is simply not true, Ethereum does have unlimited supply (amount in circulation is currently above $100 million)
nevertheless, when EIP-1559 got activated, supply will be stabilized, since fees will be burned, and that will limit yearly inflation which will be below BTC inflation at the moment

currently ETH has higher inflation than BTC, but PoS activation, merge, and EIP-1559 should change that, but will not limit maximum supply

Vishnu.Reang

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Quote from: tvplus006 on June 06, 2021, 07:19:24 AM

The fact that the coin has an unlimited issue cannot automatically classify it as a bad coin for investment. In the market, it is easier to count coins that have a limited issue than those whose issue is unlimited. For example, one of the most popular coins for investment, which have an unlimited issue, is ethereum.

Who told you that the Ethereum supply is unlimited? For your information, there is a limit on maximum supply at 100 million. Now I know that there are talks, on moving to a hybrid Pos-PoW system, but still I don't think that they will mess up with the maximum supply limit. Because if they do so, then the market cap of Ethereum will crash. The only coin with an unlimited maximum supply that has been doing good is Dogecoin. But even in case of Doge, we need to see whether it will be able to sustain the gains.

tvplus006

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Quote from: Billo_ on June 05, 2021, 11:41:29 AM

...- Polkadot hat unlimited inflation, means, Polkadot has not a fixed supply where we know how many coins will be produced...

The fact that the coin has an unlimited issue cannot automatically classify it as a bad coin for investment. In the market, it is easier to count coins that have a limited issue than those whose issue is unlimited. For example, one of the most popular coins for investment, which have an unlimited issue, is ethereum.

Topic: Polkadot [DOT] is a bad investment because it has unlimited inflation! - page 3. (Read 677 times)