Topic: Polkadot [DOT] is a bad investment because it has unlimited inflation! - page 4. (Read 695 times)

When you pick up a coin for investment, we normally do not look at the supply only and think if it is worth investing or not. There are many other factors which needs to measured. Polkadot is the good project but lately it is not moving as it should be. I think when Para chains will be implemented on polka dot, we may see the true potential of DOT.

How it can be "unlimited inflation", when the maximum possible inflation is capped at 10%? I would say that the principle used here is a middle ground between the deflationary idea of Bitcoin and the hyperinflationary logic of fiat currency. Ideally, most people should not be having an issue with inflation, as long as it is limited to a certain level. And that is the principle used here. At least during the initial days, it is guaranteed that the userbase will increase at a rate of more than 10% per year. So they are justified in this 10% limit.

Yes, I think Polkadot is a centralized and regulated coin, different from the pure nature of a fully decentralized cryptocurrency, but until now the IDO that is in Polkadot produced a successful project project, not even infrequently anyone buys a whitelist at a high price, I agree if Polkadot has inflation and maybe it is bad, but their development and promotion is very good this makes it the top.

Inflation seems like a thing of the past now with all the crazy pumps that started with coins with large/unlimited supply. Like it or not, the market has evolved and many investors of today are more focused on partnerships, listings, or anything that will pump the price. I have not taken Polkadot a deeper look but their ecosystem is growing fast.

I think its how you make advantage of the situation if you are an investor yes you make research of the coin, but at the end of the day as an investor you will need to make profit out of it, for example you invested a thousand dollar last year which means you already have a big profit as of today, if you think its a bad investment then why not take the investment and find a new one, when it comes to polkadot I think it has a big future like cardano and chainlink this are the top challenger of ethereum.

Strong competition doesn't mean that the competitor tech is not good. It just mean that they have a similar technology that compete each other. I believe this is what the user you quoted really mean on his statement. Polkadot is a good rival of Ethereum because it already surpassed ETH on many aspect such as TPS which is very crucial on blockchain base project. But the value of this kind of token might be affected when there's a new blockchain based project exist that's better against it.

No, Polkadot is a coin, it's a new Blockchain.
Some parts might be copied from Ethereum but Polkadot is a new coin, not a token.

But it's a very weak coin because it hasn't solved its inflation problem.

To be frank,  I do not believe 10% inflation rate which is adjustable could be detrimental to the supply of existing token neither will it dilute the value of existing coin.  The polkadot is strong competition for the coin like ethereum.  Polkadot will rise in value if they deliver good tech that can be rely upon!

If you do some research you should realize that polka is not a coin is a token. And isn't the first one with unlimited inflation, a good example of coin with unlimited inflation is doge coin, and that's because that coin doesn't have halving, which means the blocks will always have the same amount of coins, and the total supply will grow to infinite. But that doesn't make from it a bad investment. It only means the coin will lose value in the future because there will be more coins. But if the people like the coin then the price will bump just like what happened with Doge. 

Polkadot and Cardano are the only projects that can be serious competitors for Ethereum right now.
Other projects like NEAR? Avalanche, Cosmos will connect to the Ethereum ecosystem across various bridges.
So far, these projects offer fast and cheap transactions, but this is only for now. Why will they be needed when the Ethereum team resolves this problem. Even after the start of Arbitrum One, most projects will work with this level 2 solution.
Yes, and the matic works well, only the withdrawal of coins to the main blockchain can be expected for several hours.

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

Yes. It is very much said that Dot is the next generation of Ethereum. I think that kind of thinking is very wrong. He only looks at crypto when it's popular. And not learning about the real Polka. This is what someone is worried about, when the maximum supply is not clearly visible, then there is a possibility that at any time the amount of inventory will increase.

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.


Proof:


https://bisontrails.co/polkadot-token-economics/


What is inflation any why is inflation so bad?

Inflation is produced if always new coins or monetary supply is created. Everyone's coins or money will lose value because more coins are created.
It is what is happening in Turkey, in Argentina or in Venezuela, when money is printed. All circulating money is losing value when new monetary supply is printed.
Inflation is a big reason why Bitcoin exists and is so successful! Bitcoin will always have 21 Millions of coins, even in 50 or 100 years. Bitcoin is a great store of value!  

Polkadot is opposite, it's a coin of inflation (proof: see picture above). It has no limited supply and every year, always more coins will come into circulation. magine what happens in 50 or 100 years? Polkadot will have a huge inflation
People will know more about inflation coins, when time passes but we can see it already here today if we are wise: some coins are a very good store of value (Bitcoin) and some coins are a very bad store of value (Polkadot).
When Polkadot is always mentioned, marketing persons who are pushing Polkadot are never mentioned about Polkadot's inflation!


But which coin can we buy instead of Polkadot?

What should we invest instead if we want a DeFi coin but want to avoid Polkadot, because it's not a store of value?
We can choose Avalanche [AVAX]. It is also a DeFi coin but has a capped supply of 720 Million coins:


https://medium.com/avalanche-hub/comparison-between-avalanche-cosmos-and-polkadot-a2a98f46c03b

Keep in mind when you buy a coin! Always research about inflation or if it's a store of value!
Even Dogecoin has huge inflation! Dogecoin is also not a store of value.