Frequently asked questions
As of April 2021, the price of DOT sits at just over $40 per token. This represents an almost tenfold increase since the turn of the new year.
The number of blockchains that can connect to the Polkadot network is effectively limitless. Moreover, there’s scope for the chains connected to the network to be recursive – effectively operating as miniature versions of the broader network, spreading out into as many chains and transactions as might be desired.
The value of the currency is snowballing – the better it does, the more attention it receives, and the more buyers are encouraged to invest. The currency, however, is not yet mature – and its value remains to be proven over a longer period of time. The pedigree and expertise behind the currency, however, gives cause for optimism.
Polkadot is available via cryptocurrency exchanges, which allow you to buy and sell the currency. Exchanges charge a small percentage fee on every transaction, but in some cases, the fee is larger than in others.
Like other cryptocurrency, Polkadot is stored using a wallet, which includes both a public and private key. The public key is used by those wishing to send you DOT; the latter is for your private use.
Polkadot tokens have no inherent value beyond the value that the market assigns them. In this respect, they are much the same as any other commodity which is used as a store of value, such as gold.
Polkadot is a crypto protocol and network that links different blockchains and enables cross-blockchain transfers of any type of data or asset. For instance, with Polkadot you could send Ethereum to a friend who receives the equivalent amount of Tezos.
Polkadot sometimes is referred to as a ‘Ethereum killer’, largely owing to the role that Ethereum co-founder Gavin Wood has played in its development.
DOT is the ticker name of Polkadot. The ticker name not only saves screen space and removes confusion, it’s also an easy way of distinguishing the coin itself from the Polkadot network.
Polkadot is like any other cryptocurrency traded on so called exchanges, which determine the price through supply and demand. Polkadot's price is both highly volatile, and somewhat correlated with broader trends in the crypto markets.
We should note also that DOT is a relatively young currency, which points to extra volatility as technical challenges arise and are overcome (or not
There are hundreds of projects using the Polkadot network, whose popularity (or lack thereof) will influence the perceived longevity, and therefore the price of DOT.
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