Polkadot [DOT] is a bad investment because it has unlimited inflation!

[feelideb]

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!

[jaberwock]

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.

[SaShiRaJaVu]

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.

[masterrex]

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.

[ahmia39]

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.

[herurist]

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

[capcaypro]

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

[Billo_]

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!!!!

[Billo_]

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.

[andeluna]

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.

[guydin]

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. 

[kak uli]

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

[Billo_]

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.