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The case FOR Polkadot: Amazing tech and use-case, high developer activity, and incredibly decentralized

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The case FOR Polkadot: Amazing tech and use-case, high developer activity, and incredibly decentralized

Yesterday Polkadot was criticized here because of its price action and inflation. That was a good post. I wish there was more content discussing projects on this subreddit.

  • I would agree that price action has been rather lackluster since all-time high (ATH). This is true for many projects, though not all. Despite the recent pump of SOL, for example, SOL is still down more percentagewise since ATH than DOT.
  • The inflation argument is not as strong because that is what staking is for. Staking covers the inflation aspect and if you are not staking you are a silly goose. Though to be fair, staking DOT outside of exchanges should be easier.

I would argue that there’s a TON of positive sides to DOT. Yes, it is my favorite project and long-term hold. Let me elaborate.

Argument 1: The tech is AMAZING

Polkadot is a software that seeks to incentivize a global network of computers to operate a blockchain (the main network called relay chain) on top of which users can launch and operate their own blockchains (parachains). So anyone could just use DOT to start a safe and reliable blockchain.

There’s also bridges that allow the Polkadot network to interact with other blockchains. Oh, and did I mention that DOT has its own test chain, Kusama? That allows DOT to innovate and test any update long before implementation on Polkadot, preventing issues with updates.

There's much more to DOT and to what they are planning on the roadmap. For more information, read here.

Argument 2: Polkadot has a great team and amazing developer activity

Polkadot has a lot of active developers, more so than almost any other project. From a time perspective (but not an absolute numbers one!), DOT has more active developers in an earlier stage than Ethereum. This high developer activity did not change during the bear. Polkadot remains one of the projects with the most active developers.

Also, Polkadot was founded by Gavin Wood, a founder of Ethereum, widely considered a brilliant man that is very reliable. Recently he stepped down as CEO to work more on development as chief architect, which is a good thing and suits him more.

Developer activity

Argument 3: Polkadot is incredibly decentralized and therefore one of the safest bets if/when regulation comes

Polkadot is one of the most decentralized crypto projects, as evidenced by the Nakamoto Coefficient measure, which β€œis a measure of a blockchain networks decentralisation, representing the minimum number of entities whose proportions one can sum to get to 51% control."

DOT is viewed more as a software than a cryptocurrency, and thanks to its decentralization, is one of the most safest bets with incoming regulation, whenever that might be.

Nakamoto coefficient, a measure of decentralization

Argument 4: The price is (relatively) low and breaking out

Polkadot's price topped at ~$55. That was a deviation above the range as the prior all time high was broken and retail predicted higher prices around the parachains upgrade. It went back into the range and dumped, like Bitcoin did. Polkadot's price has been on a downtrend since and rejected off of the same trendline three times.

We just went below the range as a fakeout and quickly reclaimed the range, while at the same time pumping out of that fake breakdown hard. This is usually a bullish sign, as we did the same move as at all time high but in reverse. I would say this is still a great price for DOT.

Polkadot weekly chart

Final thoughts

All-in-all, I recognize some of the downsides. The price action could be better. The parachains tech is amazing, but the first projects had some issues. Staking could be easier. There also is not THAT much hype around DOT.

But, with a long term perspective, I place my bets on great tech with high developer activity and a solid team. And in my opinion, DOT is one of the best examples of that.

Note. Please dont buy because I of what I write. Do your own research. I just wanted to provide the other side of the coin after the great post on DOT's downsides that was posted here yesterday by u/Gabester. Read that post too, please!

submitted by /u/Beyonderr
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