Will DOT's supply cap affect your investment decision?

There's always been a lot of chatter about how a token's overall supply affects how investors act and whether prices go up or down. Some folks say BTC's high price is due to its fixed supply of 21 million, while others claim DOGE can't maintain a solid price because there's no limit on its supply. Now, we've got a fresh situation to look at regarding this topic. Polkadot is looking to set a cap at 2.1 billion DOT, which seems like a little nod to Bitcoin's 21 million cap. The idea here is probably to counteract the ongoing decline in DOT's price after some not-so-great attempts by the Web3 Foundation to boost it. But even with this news, DOT is still struggling to stay above 5 bucks instead of skyrocketing like OKB did back in August after altering its token supply. This situation highlights that the price of a token isn't just about how much of it there is. It also heavily relies on how much demand there is from users and investors. Right now, the demand for DOT isn't strong enough to push the price up. So even if they were to slash the total supply by half, it doesn't mean we'd instantly see the price double. I really hope that Polkadot manages to bring out some significant upgrades soon and creates a unique story to help lift the DOT price rather than keeping it stuck at these low levels. Their parachain tech could be super valuable as the need for blockchain interoperability grows in the future. I wanna hear your thoughts on this.

No, a cap alone wouldn't make me buy. It's unlikely that it moves price by itself. A 2.1B cap mostly limits future issuance. Current supply is well below that, so near-term flows don't change unless they also cut inflation or lock more DOT.

If there is any form of burning to a coin or token does not still guarantees for it performance, we have to make some more research about it to ensure that the information and certainty needed have been well fetched before deciding on investing into any, we need to see more beyond just the reduction in the total supply or coins in circulation, but when there are investors willing to buy and also pulling the necessary results for adequate performance, people by themselves will key into the project to buy more and hodl, hence we should not take the reduction in total supply as the only basis for our investment.

1. I'm not. I don't like their outdated tech. 2. Yes i think so. Reduction supply should be the main narrative that may be driving DOT's price to increase. Other than that DOT staking reward will be also massively reduced, which prevent the inflation to happen faster. Less coin distributed to the market meet big demand = bullish! 3. Just like what i said in the my first answer. I have no target caused by i have no intention to hold it.

Was of time. The hype behind DOT died a while back, and I don't think a token burn is going to change anything. I have seen tokens do those token burns in order to reduce on that circulating supply with hope that the price goes astronomical, but instead the price keeps going all the way down. Want to know why? Without demand, reducing supply alone does not help. I think the great old days of polkadot are long gone just like the likes of chainlink and group.

some pretty dead tokens came back to life in short bursts recently, but that was usually temporary...

Wtf is reduction in supply? This is a time when people actually want to see protocols get traction and get substantial and sustainable revenue that accrues value to token holders. Right now, no value accrues to DOT holders. The only thing DOT holders have received so far is dump after dump especially from the Polkadot foundation constantly selling and using their community as exit liquidity for years. I'm pretty sure this new initiative is just a scheme to trap new buyers as exit liquidity. No, thank you.

They should've focused on their ecosystem. Solana and Ethereum with uncapped total supply is still going strong despite the inflation. At this point the cap of total supply isn't the problem, they should be more concerned of attracting big decentralized apps integration to their blockchain. Even if the total supply is half of what mentioned, if the blockchain is just a dead chain, the price won't move. Moroever, this supply reduction marketing stunt won't work if the blockchain just don't have any utility at all. At least that's my 2 cent. Study ethereum.