Polkadot Has a Great Use Case. Could It Hit $100 Though?

Polkadot (CCC:DOT-USD) is one of the latest blockchain platforms similar to Ethereum (CCC:ETH-USD). The native currency of Polkadot is DOT. Using the Polkadot network, you can access a wide range of blockchains.

Many experts believe the token will grow in the future. As a result, many traders started investing their money in it. One of the main reasons behind the growth expectations is its interoperable blockchain, which got the project substantial price gains.

But before you decide to invest in this token, you should know whether the project is worth it. Here’s the rundown on Polkadot, and whether it’s a buy right now.

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Why Is Polkadot Getting Famous?

Many people believe that Polkadot has the potential to surpass Ethereum.

Ethereum is a blockchain platform that’s great for developers. On this platform, developers can solve complex computational problems. However, it charges a fee for transactions.

The Polkadot system is more versatile than Ethereum. It provides more than one platform for developers. Moreover, they can also work on new digital coins within the same platform. So it’s no surprise that most Polkadot investors are developers.

Due to its versatility, more investors are putting their money on this platform.

Another reason for its fame is low cost. You don’t even need 100 dollars to buy a DOT. That doesn’t exactly make a buy though.

Bearish View on Polkadot

Each digital coin took time to reach a new price. Bitcoin was launched in 2009 but its price started to rise in 2017. By the start of 2020, it became the most expensive cryptocurrency of all time. So, it took bitcoin 11 years to become a valuable asset.

The same goes with Ethereum, which was initially launched in 2015 and became highly valuable in April 2021. Many people have the same expectations with Polkadot.

Right now, it is just a year old. The current price of one DOT is only $27.85 and it was standing at $26.41 at one point within the past 24 hours, so there is a rise in its value.

However, a couple of months back its value was above $40, which hints the value of Dot is not stable in 2021. Some experts believe that it can reach $100 by Feb 2022. Others believe DOT won’t get anywhere close to $100 in early 2022.

When we look at the history of tokens, it is clear that it takes blockchain currencies at least half a decade to become expensive assets. So, if you are investing in this token, don’t expect to get your investment back tenfold overnight.

Now, let’s explore the views of experts about this blockchain network.

The disturbing news for DOT investors is the statement from Max Keiser, a famous broadcaster. In an interview, he said that Bitcoin will beat gold and the value of other coins will drop to zero.

According to CryptonewsZ, this coin can grow, but it will take a lot of time. Digital Coin Price predicts it could take five years for DOT to reach the value of $100. However, the Trading Beasts believe that it will stick to around $44 by the end of 2024. Pretty slow right?

This is all to say, Polkadot is not a sure lock on huge upside. If you are investing in this token, it may not hurt your pocket, but don’t expect to get massive gains.

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Final Thoughts

Bitcoin was the first big cryptocurrency, but it also took its time to become a valuable asset. In its initial days, many people bought it just for fun. Early adopters are now millionaires due to these coins. But we cannot predict the same thing for thousands of other digital coins.

Remember, if you want to invest in any of these new digital currencies, you should do your research or heed the opinions of experts who know what’s going on in the digital space. Without proper guidance, you can’t expect to earn profits from these cryptos.

On the date of publication, Stavros Georgiadis, CFA  did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Stavros Georgiadis is a CFA charter holder, an Equity Research Analyst, and an Economist. He focuses on U.S. stocks and has his own stock market blog at thestockmarketontheinternet.com/. He has written in the past various articles for other publications and can be reached on Twitter and on LinkedIn.