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

[speedforce]

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.

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[ahmia39]

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.

[Mika220]

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.

[tvplus006]

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

[zasad@]

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

[bryant.coleman]

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.

[dhemasm]

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".

[Bohdan820]

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.

[pawanjain]

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.

[MusaMohamed]

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.

[Billo_]

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.

[Vishnu.Reang]

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.

[$anounimus$]

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.

[Shallow]

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.

[Bitstar_coin]

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.

[shinratensei_]

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.

[hd49728]

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.

[Tipstar]

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.

[Jackl87]

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.

[hd49728]

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.