Is it a good idea to invest in polkadot in this bear market?

joeljaimes1982 (70)Authorized Userin Steem Alliance • 8 months ago

After marking a new all-time high above $73,000, bitcoin is falling sharply again and many are beginning to fear the worst since since last Thursday we have seen how in just 3 days bitcoin corrected more than 12%, returning at times to $62,000 and dragging again the altcoins that have suffered falls of more than 20%.

However, and despite the fact that more than one is still scared by these movements, we must understand that this type of setbacks and volatility are totally normal and healthy for the market and, in fact, they leave us opportunities to continue accumulating. "Let's remember that you buy red, not green."

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Which cryptocurrency can we set our eyes on in this bear market?

Well, Polkadot, after a few quite difficult months in which we have seen dot falling to levels that were very little expected, going from $50 to completely collapsing not only in 2022 but also in 2023 when it fell below 3, a drop of more than 90% that began to raise doubts among its holders.

Especially given the imminent arrival of the feared month of October 2023, a critical date for polkadot in which some 100 million dots that were blocked from parachain auctions were released, an event in which the worst was feared with dot below of the 4 along with the release of about 400 million dollars.

This could have caused a total collapse in the PR, however, unlike what many thought, Dot marked a bottom during this event and began a fairly important movement that has currently led to a growth of almost 200% since then, even reaching $11. last week and registering a fairly good start to the year with more than 49% increase.

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Both polkadot and cardano have had worse performances if we compare it, for example, with solana, which last Saturday touched $200 and approached its all-time high, or also but unfortunately with the fall of Bitcoin, solana had a significant decline in its value.

Not to mention bitcoin, which lasted a few days above 73,000, however recent news has once again made polkadot exceed the $10 barrier for a few days and stand at a growth of just over 40% in the last 90 approaching ethereum and bitcoin, both around 60% and above all, surpassing others such as matic, tron, Ada or avalan, even so, many holders continue to wonder how an all season could affect the price of Polkadot.

The big problem of polkadot inflation is the main reason why many are losing hope in Fiat money and why savings stopped making sense a long time ago since it keeps losing value year after year as that governments print banknotes non-stop.

For this reason, many people invest in bitcoin thanks to its limited supply that makes each token have much more value as demand increases, however, as you surely know, this is not with all cryptocurrencies but there are cases like polkadot that, unlike Bitcoin does not have a limited supply but rather each year has a certain percentage of inflation and the supply does not stop increasing year after year.

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But why does this happen? Well, explained in a very summary way, Polkadot has designed a system through which they have an inflation of 10% annually with which to pay the rewards of the validator nodes, which without going into too many explanations, are the main ones in charge of guaranteeing security. and efficiency in the polkadot network.

This allows activity to develop on it and prevents it from suffering attacks or crashes since these nodes are an essential part of the project and to which it was decided to distribute a series of rewards or payments to thank them for the work they do to make it work correctly.

In conclusion

Polkadot inflation today continues to be a point that brings a lot of criticism and that every year causes inflation of 10% to dilute the price of Dot, in fact something that we can already see reflected in the CoinMarketcap graphs that despite Since the price is above $9, Dot can be expected to lose value in the coming months.