Polkadot: Hype or Progress?
Ah Polkadot, one of my first Cyrypto crushes and such an important block chain to have appeared on the scene, our love affair didn't last long though because it's price was quite volatile and I think it failed to secure the market it needed at the time. But Polkadot did set the standard of things to come especially as Ethereum GAS fees continued to spiral out of control.
It promised a new form of Block Chain communication, interoperability something that was relatively new and it meant that you could engage with any network through Polkadot without costly fees and a way out of congestion. But then Ethereum saw the rise of Layer 2's like Matic, wrapped tokens began appearing and Polkadot lost it's spot in the lime light.
Don't get me wrong the token has been tracking pretty decent if you were an early investor it's returns have been quite good and it's ability to be staked and participate in governance and earn rewards has been great. Not to mention the recent boom the token is going on right now. You might be wondering why?
Why the Boom?
Source: Canva Pro
Polkadot has significantly increased in price parachuting to the 8th spot and it's because the block chain has recently completed it's parachain upgrade which is about to go live with Auctions commencing on 11 November 2021 source. The parachains enable Polkadot to communicate with any block chain which, 5 years ago when it was announced was a vision of future.
The Auctions will auction off one Parachain per week until December 9 and for those wishing to know what it is like you can look no further than Polkadot's testnet Kusama Network which already houses Parachains.
Will it Moon?
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Will it Moon? according to FXStreet they think it might go on another surge but I'm of two minds of it. Yes Polkadot is a great block chain but it is important to note that it is set up by Gavin Wood whom is a former Ethereum founder whom all have gone out and tried to make their own block chains as Cardano established by another former Ethereum founder Charles Hoskinson. From a community perspective it feels as if the founders of Ethereum couldn't agree on a direction for the Ethereum network so split and went and did their own.
Meanwhile Vitalik Buterin hasn't exactly given up on Ethereum with recent upgrades such as the London hard fork and BEth launching to increase the speed of the network, lower GAS fees and a token burn. There is much more at play with Ethereum and my personal thoughts, if you're going to invest in Ethereum then invest in Ethereum (not financial advice)
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Polkadot is also a very clunky and not an easy block chain to use when it comes to validation, staking, voting it is very old model where newer block chains are more stream lined and focus on ease of use which open up the market to a broader group of people.
If you feel like sending me some Dot, you can to my address here: 13xTDEg3USRAB7UMLJpfAGt9VgVLxnFRgBrbBypExRTuYSdT
I think Dot will be great for developers and project start ups and there might be some significant price growth once auctions start up and the limited amount of parachains up for grabs but again any project looking to start up will need to weigh up the cost of entry to the cost of what they think they can earn. Crypto has been quite volatile and it has become repetitive DEX, Defi, NFT some games etc. So will the cost of a parachain outweigh the benefit?
I mean a parachain DEX would be a good option but then again Thorchain has been building this and is moving along at a decent pace and is a lot cheaper to invest in.
I think this bull run for Polkadot is Hype but I could be totally wrong and Polkadot could be what it was marketed as and that's an Ethereum killer, although the list of "Ethereum" Killer block chains grow daily and in rebuttal Ethereum's price mocks them by growing ever so more.
What are your thoughts? let me know in the comments section below.
Image source provided, This is not financial advice and readers are advised to do their own research or seek professional services
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PIRL moved to polkadot ecosystem and fell on its tits, so I have mixed feelings hahaha
but it seemed solid for how long it lasted 😁
I think maybe Polkadot worked a little too slow in its development and has been bested by a few other projects.
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I believe there is space for DOT, which will grow with time and with more people using cryptocurrencies and different blockchains. The epithet "ethereum killer" might by an exaggeration.
Auctions themselves are quite hard to make fair. I wouldn't be surprised if there is shill bidding and other issues but I guess the buyers/sellers would still lose money for listing/selling
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