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

[laredo7mm]

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.

[2tang]

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 ?

[justdimin]

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.

[tvplus006]

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.

[iTradeChips]

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.

[CaptainCrapper]

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.

[distr@yopmail.com]

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.

[semobo]

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.

[so98nn]

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

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.

[WalkerIVIV]

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.

[wheelz1200]

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. 

[Billo_]

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.

[FinneysTrueVision]

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.

[Tipstar]

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.

[slaman29]

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.

[irsada]

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.

[ahmia39]

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.

[zasad@]

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.

[Text]

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.

[TWW]

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.