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Why do people rushing into SOL? Should I increase the size of my bag?

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by COINS NEWS 81 Views

Before everyone calls me a SOL hater, I just want to say I actually hold a tiny bag of SOL, and recently I've been getting that Fomo for not invest more into it, so I decided to learn more about it, but as I conduct my DD, I realize a big risk that I couldn't ignore, but I have no answers either, so here I'm asking for opinion.

From my understanding Solana is a network that requires "price always go up" to work, at least it requires most people to think that, the cheap low cost transaction has been one of the main selling point of Solana, but I figure the cost are actually more subtle and hidden, it's actually paid by everyone SOL holders via diluting the values of their holdings, in simple terms it issue more SOL to pay staking rewards to keep people staking for maintaining the decentralize and security.

The inflation rate is at a whopping ~7%, and it's not enough, it still requires most people to be super speculative, to believe "that price can only go up", but everyone with common sense know there's no infinite new money going into Solana to make everyone rich, as long as Solana couldn't sustain the hype that draw new speculators into buying Sol, it will slow down the price growth, and when new money coming in is less than old money (people taking profit) going out, this can create a downward spiral on the price.

The entire thing I describe above actually just looks like a Ponzi, but with a different packaging or theme, I don't see how this can change unless Solana increase the fees of transaction, but then again, that kills Solana biggest selling point.

Does Solana actually have workable or realistic plan in their roadmap to make the network profitable and solve this?

submitted by /u/LifeReboot___
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