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

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Do you know that Ethereum is also unlimited?
Ethereum EIP 1559 has limited Ethereum supply.



I think what you said in your thread is very true and needs to be avoided before the risk is experienced by many investors. although many say here there is no risk, but in my opinion there are more coins in circulation or do not have a limited supply, it will cause inflation in the future, especially since these coins cannot produce visible use. Therefore I think that there will be great risk if we invest in altcoins that have unlimited supply
Yes, you are right!
Inflation coins are always affected by two disadvantages:
- people don't buy it for long-term because for long-term a store of value coin is better (like Gold)
- people are very careful to avoid also buying for short-term because overally, an inflation coin will attract less people

Inflation coins are especially a bad investment during a time when not much new capital comes in, like a bear market. Most issued new coins are not bought, which results in a slow but steady price drop, like it happened to Polkadot recently.
full member
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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.

I think what you said in your thread is very true and needs to be avoided before the risk is experienced by many investors. although many say here there is no risk, but in my opinion there are more coins in circulation or do not have a limited supply, it will cause inflation in the future, especially since these coins cannot produce visible use. Therefore I think that there will be great risk if we invest in altcoins that have unlimited supply
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www.fintropy.io
Do you know that Ethereum is also unlimited? Nevertheless, it doesn’t prevent it from being the currency number 2 in the crypto market. Total supply is, of course, very important, as it can support the price if it has a limit. But, anyway, it is not the most important  index when you investigate coins. The idea and partners are more important. And in terms of Polkadot, it has a lot of admires now that don’t care about inflation. 
jr. member
Activity: 238
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This is not really a bad investment if the project will become successfull like the other coin or token that have unlimited inflation. For example ETH this crypto currency have unlimited inflation but what is the ranking of this crypto? second to the top crypto in the world which is BTC so dont make a bad conclusion to this project if we dont know what will be their purpose why they make it unlimited inflation because they have reason why they do that.
member
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Short reminder to check for coins if it has a capped supply!
Too much inflation can really damage a coin a lot.

Polkadot suffers from huge inflation and was decreasing in price recently because no buyers could be found.
member
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Having an unlimited supply is a very bad argument for not investing in a cryptocurrency.
You are very wrong here.
Scarcity is an economic law of every product and nobody can avoid economic law.
Just look at Gold, it is valuable because it is very scarce.
Just look at Venezuela Boliviar, it has no value because is is printed indefinitely.
Just look at Sand, every beach has so much sand, also every desert, sand has no value because it can be produced almost everywhere.
MARKET CAP is always NUMBER OF SUPPLY x PRICE
You need to understand

Monero and Ethereum also have an unlimited supply.
Ethereum Devs have already started to change it because Ethereum devs know very well about Ethereum inflation problem.

Poldadot can just change the inflation rate because they have centralized authority like Ethereum. They can change their inflation policy whenever they want.
And? Do you consider a centralized coin as a good feature? LOL
See again how wrong you are!
You have exactely zero knowledge about a good coin!!!
A good coin should not be possible to be influenced, a good coin is decentralized. If devs are making a mistake, it is possible for devs to kill a whole coin. Or if devs are shot by a muderer, a centralized coin can be killed!
A centralized coin is a very bad coin!
Bitcoin and Avalanche have not such issue because of decentralisation. It needs a very big agreement for coins like Bitcoin (see Bitcoin Cash Fork) or Avalanche (900 validators) to make changes or kill such a coin. Decentralisation is a very good feature.

10% max inflation rate is not too bad.
LOL
Again you are very wrong!
10% inflation means during 10 years, your coins will lose 50% value because 100% more coins are produced. Bitcoin and Avalanche has not such issue.

When you look at the countries you mentioned (Venezuela, Turkey, and Argentia) they have inflation rates of hundreds or even thousands of percent.
Yes, and it is a horrible inflation.



It is not enough to come to a conclusion about polkadot just because of the supply. Ethereum has unlimited supply and it's supply is in hundred plus of millions!
WRONG!!!
Ethereum will switch away from horrible inflation like Avalanche does now already!!!!

Polkadot is SHIT COIN!




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.
I hope you will do a complete research on Ethereum and XRP as well and if i remember the last time i checked even they did not have a fixed supply
I did my research on XRP and it's a very centralized shit coin. Educated investors will avoid it






@everyone!
Do your research properly! Ethereum will make an EIP 1559 where inflation of Ethereum is DECREASED!!!!
sr. member
Activity: 854
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it is true that unlimited coins are not good for long-term investments but this does not apply to all coins because there are some coins that we can invest even though the coins are unlimited and perhaps an example that can be mentioned is eth.
Even though eth has an unlimited supply of coins, but eth is able to compete and until now eth is one of the coins that has a lot of demand.
so not all coins are like that even though most of them are not good but not all are equal because we need to test and do research here to say this coin is worth it or not to be a long term investment
sr. member
Activity: 1680
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I don't think it's all like that we can just take a real example with eth which initially creates an unlimited token. but until now eth still give a very good contribution even more than expected. and no problem making long term investments here.
but back again to each individual to do that or not because here there is no coercion at all because indeed the risk also returns to each other.
and not all unlimited coins can be used as investments, but we have to look further and careful observations can't immediately be considered good or not for long-term investments
sr. member
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I consider Polkadot to be a good investment and now I am actively using the staking of this coin. Crypto enthusiasts have an interesting review of the price of this coin and the author's opinion completely coincides with mine.
Yes, but it should also be realized that any Altcoin in the crypto space will always move well if Bitcoin already has a good recovery and price increase in the market, so what should always be seen now is Bitcoin, after that only Altcoins, because Altcoins will be difficult increase if Bitcoin is still experiencing a correction in the market.
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Yes I agree with your observation, And I believe it is a very vital factor for choosing a coin/token especially if you have a broader plan to hold it for a long term period, But sometimes the difference can be noticed easily Like Dogecoin it's just created as a meme coin so literally, it has no critical usage plus the unlimited supply that clearly pointing that it will not be a store of value no matter what happens, while PolkaDot is different it has a critical use for smart-contracts that might be a source for future demands on Dot tokens and also it serves as an Ethereum alternative so for me Dot is not a bad choice of investment compared to all meme coins that flooded in the market today.
hero member
Activity: 1694
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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.
I hope you will do a complete research on Ethereum and XRP as well and if i remember the last time i checked even they did not have a fixed supply and i am not sure whether they have implemented any supply limit recently but from what i know some of the major hyped coins does not have a fixed supply and yet people are dreaming and talking about higher valuation and in some cases the market are rising without any logic.
legendary
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some crypto assets also have the same problem with DOT.
just look at dogecoin and ETH. this is an example of an asset with the same characteristics as a DOT. maybe ETH will change its plans to handle things with ethereum 2.0.
but so far, we believe ETH is a good asset for investment.
My advice is to ignore that problem because the crypto market has another aspect that makes absolutely no sense when you compare it to other trades. You certainly know how crypto assets can fluctuate. and all that can be created because of many aspects.
DOT is gaining momentum this year. I hope it's not finished and will continue to be developed in the future. Polkadot still needs a lot of development to become a major attraction in the crypto market.
That is not a "problem" if you can make it work. I know that it is not ideal and we like it when a coin is limited so that we know how much there will be and when it is all out there we would know how much it could make us etc etc. Look at halving in bitcoin and you can see what makes the market tick, as soon as we hit halving it was countdown to another ATH and usually that is how it is, in 2016 we had another and look at 2017 peak, so yeah the unlimited thing is not always a benefit that is true.

However even though it is not "good", if you do not let it be a bad thing then it won't be bad neither, it is going to be alright, and that is why I do not doubt that we are going to live with something like this for a long time. I am not saying that we are going to have to force developers to make it unlimited for all the future coins that will come out, but if there is any, we will know how it can be fine, the second biggest coin is unlimited and it has been fine.
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It is not enough to come to a conclusion about polkadot just because of the supply. Ethereum has unlimited supply and it's supply is in hundred plus of millions! Another issue here is that supply rarely determine the price of good coin with good technolgy. Polkadot is very promising, I think it supply will not affect it's price if they come through with their plans for polkadot!
TWW
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some crypto assets also have the same problem with DOT.
just look at dogecoin and ETH. this is an example of an asset with the same characteristics as a DOT. maybe ETH will change its plans to handle things with ethereum 2.0.
but so far, we believe ETH is a good asset for investment.
My advice is to ignore that problem because the crypto market has another aspect that makes absolutely no sense when you compare it to other trades. You certainly know how crypto assets can fluctuate. and all that can be created because of many aspects.
DOT is gaining momentum this year. I hope it's not finished and will continue to be developed in the future. Polkadot still needs a lot of development to become a major attraction in the crypto market.
hero member
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I notice that there are investors who are not looking at the supply of a coin or whether it is they can define a store of value.  You should also not always consider that a coin that has an unlimited supply and that you cannot consider a store of value is a bad investment.  Because the existence of ETH and DOGE is an example.  To this day, ETH is still thriving in its position, and I don't see it being surpassed by the DOT, for it is still not as noticeable as ETH has reached.  And DOGE, as a meme coin is still used in gambling bets and also because of its cheap transaction fee.  So we invest because we hope we can make money here, remember that there are also short-term investors.  The fact that you wait another 50-100 years to find out if a coin still has value is not reasonable, maybe you are aware and almost everyone knows about market movements and the volatility of prices.
legendary
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So what do you think about ETH which first made the total number of coins unlimited? is it also bad for long term investment? due to the fact that ETH can continue to rival bitcoin over time.
inflation if constrained by existing conditions will not be a big problem for the value, if they continue to make something new for crypto even better then its value will continue to increase.
Ethereum has unlimited emission for now.
When the merger occurs, miners will no longer receive rewards and emissions will be drastically reduced.
EIS 1559 will constantly burn some of the commissions, so in the next 10 years the number of coins will decrease.
I saw the news that the number of coins is planned to be fixed at 100M.
sr. member
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So what do you think about ETH which first made the total number of coins unlimited? is it also bad for long term investment? due to the fact that ETH can continue to rival bitcoin over time.
My opinion about ETH is that it won't be bad even if it makes the total number of coins unlimited, because that kind of thing also won't be able to compete with Bitcoin even though Bitcoin has a maximum total supply, because Bitcoin has always been a special benchmark in the crypto space in terms of price increases and decreases every altcoin.
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So what do you think about ETH which first made the total number of coins unlimited? is it also bad for long term investment? due to the fact that ETH can continue to rival bitcoin over time.
inflation if constrained by existing conditions will not be a big problem for the value, if they continue to make something new for crypto even better then its value will continue to increase.
legendary
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Having an unlimited supply is a very bad argument for not investing in a cryptocurrency. Monero and Ethereum also have an unlimited supply. Poldadot can just change the inflation rate because they have centralized authority like Ethereum. They can change their inflation policy whenever they want. 10% max inflation rate is not too bad. When you look at the countries you mentioned (Venezuela, Turkey, and Argentia) they have inflation rates of hundreds or even thousands of percent.

Yeah, and so is the misjudgment of investing in a coin with extremely limited supply. Supply and demand isn't just a magic formula. Bitcoin got it right, but even Doge and Ethereum proved that limited supply isn't all there is to market demand, I mean people know you can just create more and more ETH and DOGE but that doesn't stop them from wanting more.
sr. member
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Unlimited supply is not necessarily a bad thing specially for a utility token. But not being able to come up with any visible use even after years of development is a red flag. If Polkadot can't compete with it's contemporary alternatives, how could we believe it would stand the test of time and compete with new and advanced utility tokens in the future? Polkadot is not a good investment at the moment.
sr. member
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Having an unlimited supply is a very bad argument for not investing in a cryptocurrency. Monero and Ethereum also have an unlimited supply. Poldadot can just change the inflation rate because they have centralized authority like Ethereum. They can change their inflation policy whenever they want. 10% max inflation rate is not too bad. When you look at the countries you mentioned (Venezuela, Turkey, and Argentia) they have inflation rates of hundreds or even thousands of percent.
member
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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.


Yes it's true that polkadot has unlimited supply but that fact alone does not mean that it is a bad coin to invest into.
But it is most important fact when it comes to evaluating about profitable investments.
Look at Bitcoin, it has achieved a very big price because it is 100% capped.
People will soon find out, which coins are similar to Bitcoin (no inflation) but offer better tech.


There are other coins out there that have an unlimited supply that are still doing well like Dogecoin and also Siacoin.
Dogecoin is not really a coin of a special infrastructure, like Ethereum or Avalanche.


So i think polkadot will do well in the future even with unlimited supply.
No chance, you can't beat laws of market. Market always wins.
If you print a trillion USD, it will give huge inflation at some point. No way to prevent it.
Look at Bolsonaro.
legendary
Activity: 3752
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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.

I tend to agree with the op here.  Endless supply and no max is bad for crypto.  Bitcoin was created to eliminate money printing which endless block rewards or inflation still is. 
hero member
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Yesterday list on coinbase I thought it Will pump hard. but at the end of the day, I saw dumped hard. i was hard too much for the situation. I think the owner will be published some updates then the investment can get back by good profit.
that's a pump and dump scheme and no more. The inflation will be giving a long term impact and it's not a short term impact. Coinbase listing just another short hype. You can take how the fiat money became worthless due to the inflation. Once the coin without any hardcap will be facing this and people have no interest to buy it other than use it as a gambling.
Crypto becomes a popular trend and that's some some coins without any hardcap supply gone to the moon.
hero member
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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 Smiley

That is good point. That is how crypto space can surprise you. Who knew DOGE would have market cap of multi-billions though it has unlimited supply. On the other hand the project of POLKADOT does states that it would 10% max if the staking limit reaches to 50%. This must have been set to balance out the whole ecosystem. Otherwise anyone staking beyond that could control the market IDK (?).

True about ETH as zasad@ suggested up here. If the coin has utility, then it will work out the math automatically.
full member
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Dogecoin and ethereum too have the unlimited supply but they are considered as good coin in the crypto community which really shows that investors don't really look at the technology of the project, they just want to make profits with all those hype and will run away when it ends.
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Yesterday list on coinbase I thought it Will pump hard. but at the end of the day, I saw dumped hard. i was hard too much for the situation. I think the owner will be published some updates then the investment can get back by good profit.
I believe in DOT. Don't worry too much about inflation that can occur in the market due to supply. It all depends on how the market responds to DOT in the market. when there is an update and all of that is supported by the market community then pump in a long rally can happen.
full member
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Yesterday list on coinbase I thought it Will pump hard. but at the end of the day, I saw dumped hard. i was hard too much for the situation. I think the owner will be published some updates then the investment can get back by good profit.
hero member
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To be honest with you all, I am not worried about the inflation. I am checking the technology behind the coin. If you notice recently, Bitcoin has processed 3 transactions/second and Ethereum has processed 15 transactions/second. For me, this definitely is an indicator that there is a scalability issue that both these cryptocurrencies face. Polkadot claims it is top notch in terms of scalability. It is worth mentioning that as per the devs of this coin, Polkadot’s parachains enable faster processing of transactions in parallel. This then boosts throughput. It is said that the first parachains will launch later this year, which can process 1 million transactions/second. So with such attractive prospect, investors will be moving away from Bitcoin and Ethereum and will be investing in Polkadot.
legendary
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To the Moon
Maybe he doesn't understand inflation, but I don't think it will be a problem because he will find out on his own, but on this occasion I want to ask about the unlimited supply of Ethereum, how the price of Ethereum can stay at such a high rate large if the supply is unlimited ?

It is obvious that a large number of ETH are on the wallets of holders without movement for many years. One of the major holders is Vitalik Buterin - 365 thousand ETH. In addition, a large amount of ETH was blocked on the Ethereum-2.0 deposit contract https://launchpad.ethereum.org/en/ - 5.5 million ETH, which is approximately 5% of the Circulating Supply.
hero member
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And lets not forget about eth with an infinity supply as well, dot is not the only coin that will increase in supply as the time passes, eth has infinity supply and it doesn't stop the price from getting to the peak, what matters most is having the right tool (i.e the strong fundamental) to push the project forward, polkadot chain is gaining attention from different dev too, the platform is growing, which is the most important.
There is a good amount of them, doge, eth, cake, there are tons of things that are unlimited, I am not sure about bnb but by the looks of it they are burning anyway. There are many others, just because something is unlimited doesn't mean that it will never be good, it could be good and all these projects are the proof of it. However one thing is for sure, we are talking about something not as great as those names.

Dot is a brand new thing considering it hasn't been even a year since it started and people are assuming it is great because of its position.

Look at BCH and BSV and where they are right now one of them was 3rd and the other was 4th at some point, right now one of them is 11th and the other is 32nd. This is proof enough that if you are not careful then your coin will go down and will not be like the others and that happened to many other coins too. Dot is doing fine now, but it needs to keep doing fine or it could be lower and lower.
sr. member
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Don't you even bother to read the title of this thread?

Unlimited inflation = no hardcap and that means the coin will be minted more and more. that will give a pressure on the market just like ethereum with its unlimited supply.
Ethereum can become the best example of how the unlimited supply will bring the price to be stuck in the same position. I guess you must try to browsing some literatures about the inflation.
Maybe he doesn't understand inflation, but I don't think it will be a problem because he will find out on his own, but on this occasion I want to ask about the unlimited supply of Ethereum, how the price of Ethereum can stay at such a high rate large if the supply is unlimited ?
hero member
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Polkadot seems to be not a good coin for long-term investment.
Why do you say Polkadot is not suitable for long term investment? try to give a complete review because what I see Polkadot already has progress even though it is still inferior to the others when compared.
Don't you even bother to read the title of this thread?


Unlimited inflation = no hardcap and that means the coin will be minted more and more. that will give a pressure on the market just like ethereum with its unlimited supply.
Ethereum can become the best example of how the unlimited supply will bring the price to be stuck in the same position. I guess you must try to browsing some literatures about the inflation.

Is that even matter? I don't think so by seeing doge give more than 15000%. Investors actually don't care about max supply. The Crypto market is heavily manipulated by big whales who can make a shit project with an unlimited supply. Every minute 10,000 more doge is coming to the market and it still raising up. Dot is a far better place than doge.

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.

There is some project that has the ability to increased or decreased with supply and demands. Like AMPL and BASE are the two best examples I think.
legendary
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It's much similar to Ethereum where the inflation would be of a controlled manner just to make sure the coins are being circulated. It actually don't make sense for a utility token like Ethereum or Polkadot to have a finite supply. As the use and users increases, the demand would itself drive the price high while with increasing number, the marketcap would get higher. With chances of adjustment, the deflation could be increased or decreased depending on the situation.
Or a team can set a finite supply and make change in protocol to mint more tokens. I think a transparent infinite supply at the launch and in the Protocol is better. It brings the transparency and investors can believe in the team. It is easier to burn tokens rather than mint more. Minting more brings inflation and changes in Protocol that bring higher inflation is bad.

Yes it's true that polkadot has unlimited supply but that fact alone does not mean that it is a bad coin to invest into. There are other coins out there that have an unlimited supply that are still doing well like Dogecoin and also Siacoin. I mean if i was a Polkadot holder and if someone would ask me then i would also wanted the supply to be limited and even some regular burns on top so that the coins i own become more valuable automatically. Even though polkadot has an unlimited supply and i would think that most people know about that, it is already very popular and a lot of new projects are based on polkadot and want to apply for a parachain spot. So i think polkadot will do well in the future even with unlimited supply.
Polkadot is promoted by their team as the alternative or the Ethereum killer. One of their core developers are former-Ethereum developer.

Polkadot is better and has very higher value, quality than Dogecoin or Siacoin. With Polkadot, you only need to have patience and time. The market will do the rest things for you, of course it need good developments from developers and massive PRs.
sr. member
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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.


Yes it's true that polkadot has unlimited supply but that fact alone does not mean that it is a bad coin to invest into. There are other coins out there that have an unlimited supply that are still doing well like Dogecoin and also Siacoin. I mean if i was a Polkadot holder and if someone would ask me then i would also wanted the supply to be limited and even some regular burns on top so that the coins i own become more valuable automatically. Even though polkadot has an unlimited supply and i would think that most people know about that, it is already very popular and a lot of new projects are based on polkadot and want to apply for a parachain spot. So i think polkadot will do well in the future even with unlimited supply.
sr. member
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It's much similar to Ethereum where the inflation would be of a controlled manner just to make sure the coins are being circulated. It actually don't make sense for a utility token like Ethereum or Polkadot to have a finite supply. As the use and users increases, the demand would itself drive the price high while with increasing number, the marketcap would get higher. With chances of adjustment, the deflation could be increased or decreased depending on the situation.
legendary
Activity: 2044
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Not your keys, not your coins!
Unlimited inflation = no hardcap and that means the coin will be minted more and more. that will give a pressure on the market just like ethereum with its unlimited supply.
Ethereum can become the best example of how the unlimited supply will bring the price to be stuck in the same position. I guess you must try to browsing some literatures about the inflation.
Ethereum or Binance token BNB can be a best example that a team can make a big chance, by burning like BNB or by changes in a protocol like Ethereum.

Price will be stucked because people don't have belief in growth with infinite total supply and inflation but only a good move from the internal team will change everything. You will never know when the internal team of Polkadot project will make it.
legendary
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Polkadot seems to be not a good coin for long-term investment.
Why do you say Polkadot is not suitable for long term investment? try to give a complete review because what I see Polkadot already has progress even though it is still inferior to the others when compared.
Don't you even bother to read the title of this thread?


Unlimited inflation = no hardcap and that means the coin will be minted more and more. that will give a pressure on the market just like ethereum with its unlimited supply.
Ethereum can become the best example of how the unlimited supply will bring the price to be stuck in the same position. I guess you must try to browsing some literatures about the inflation.
hero member
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SecureShift.io | Crypto-Exchange
Doge also have no limited supply. DOT young project, but many exchange already listed it. The last one EXMO.

And lets not forget about eth with an infinity supply as well, dot is not the only coin that will increase in supply as the time passes, eth has infinity supply and it doesn't stop the price from getting to the peak, what matters most is having the right tool (i.e the strong fundamental) to push the project forward, polkadot chain is gaining attention from different dev too, the platform is growing, which is the most important.
sr. member
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SmartFi - EARN, LEND & TRADE
I tend to think in another way, which is, for a coin like DOT to reach the rank of top 10 on coinmarketcap means the team must have being doing something great which their community and investors saw, believed in them hence the value it has today. Also, I tend to believe that by reaching such height, the team will only keep working hard in order to ensure they maintain a good competitive advantage over others hence maintaining a good rank as well. This also means that, anything that will threaten the success of the platform, the team and community (if possible) will also make sure it is taken care of, because in this crypto space, once a project starts lagging behind, it is left behind.
So in other words, this issue of inflation, if it will be an issue, it will be taken care of because no one will stand and watch his investment or platform fall from such a height.
Nevertheless, one can never be too careful, so once you feel like the idea behind joining the first time isn't there anymore, or the team have lost touch of what they ought to be doing, then one can let go, moreover there are many other good platforms in the crypto space.
sr. member
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www.licx.io
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.
sr. member
Activity: 1988
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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.
member
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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.
sr. member
Activity: 966
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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.
hero member
Activity: 2702
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Nothing lasts forever
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.
hero member
Activity: 882
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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.
full member
Activity: 1829
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Moderator
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".
legendary
Activity: 3766
Merit: 1217
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.
legendary
Activity: 1932
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Buy on Amazon with Crypto
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
legendary
Activity: 2268
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To the Moon
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
newbie
Activity: 33
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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.

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

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.
full member
Activity: 758
Merit: 104
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.
member
Activity: 238
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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.
member
Activity: 238
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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.
hero member
Activity: 2828
Merit: 611
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.
legendary
Activity: 2044
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Not your keys, not your coins!
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.

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 Smiley
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.
legendary
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Nil Satis Nisi Optimum
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
sr. member
Activity: 1988
Merit: 453
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.
legendary
Activity: 2268
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To the Moon
...- 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.
legendary
Activity: 3136
Merit: 1172
Leading Crypto Sports Betting & Casino Platform
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.


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.
legendary
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Leading Crypto Sports Betting & Casino Platform
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.
sr. member
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Just.bet - Decentralized On-chain Casino
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.
legendary
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https://bitcoincleanup.com/
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.
sr. member
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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.
copper member
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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!
Then do you think Ethereum does not present good technology that can be relied on? if indeed you think so, I want to know since when did you know Ethereum and since when did you know Polkadot so you say Polkadot is a strong competition for coins like 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.
member
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But Polkadot is not a good coin, I found out after some research.

If you do some research you should realize that polka is not a coin is a token.
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.
full member
Activity: 658
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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!
legendary
Activity: 3346
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But Polkadot is not a good coin, I found out after some research.

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. 
legendary
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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.
legendary
Activity: 1932
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Buy on Amazon with Crypto
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 Smiley
sr. member
Activity: 1204
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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.
member
Activity: 238
Merit: 15
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.
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