That is insanely wrong. It can even cause you toenail fungus because there are some claims that fungus could live on nail polish. When you apply nail polish on toenail fungus it only worsen your situation. So better stay out of it when you have a toenail fungus.
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Well, if you don't have fungus and someone you know does, and has used nail polish, then I would advise you don't use the nail polish.
If you do have fingernail fungus, and you are putting on nail polish to cover it up, then you are only serving to create an environment, in which the fungus thrives.
Your nails need to be free of nail polish, and treated either with a home remedy such as tea tree oil, or go and seek a doctors opinion. I had nail fungus in my middle fingernail and was able to get rid of it with tea tree oil and white vinegar.
It took a few months, but I did manage to get rid of it.
Fingernail polish is not a healthy thing to put on large areas of skin. Molluscum is benign, and the risk/benefit balance of covering lesion with nail polish is foolish. Talk with your health care provider about safe and effective treatments.