Cryptocurrencies are rampant right now.
Everywhere you look today, the tide of protectionist sentiment is flowing. But what gives them value? When have you ever used bitcoin?
The truth is that it is not practical at the moment, primarily because of the time required to complete the transaction. But there are other coins that emerge as viable candidates to succeed in bitcoin as the number one cryptocurrency.
There is a lot to understand about the intricacies of cryptocurrencies, but this article is more about finding investment opportunities than explaining the science behind them.
Bitcoin bubble.
One thing you need to know is the concept of “mining”. This is the basis of cryptocurrencies. This is how new bitcoins turn out.
Simply put, the “miner” solves a complex mathematical problem with the help of special software, as a result of which he is rewarded with new bitcoins. Then the deal is kept in the blockchain, these new bitcoins are officially in circulation.
As more bitcoins are in circulation, mining them becomes more complicated, time consuming, and less profitable. Thus, although about 80% of potential bitcoins are in circulation right now, the latter will not be mined until 2140.
As many people know, bitcoin has seen a huge rally this year. In fact, it has grown by about 1,200% over the past year, which is why many people think it’s a bubble.
The total value of bitcoins in circulation now exceeds $ 150 billion. If Bitcoin were a company, it would be in the top 50 in the United States.
Personally, I believe that the only reason bitcoin is so much more valuable than any other cryptocurrency is that it was the first to break into the mainstream. However, it is still possible. At the very least, it gives other coin makers something to improve on.
The good news is that even if you think you missed the bitcoin boat, there are plenty of other cryptocurrencies out there. Of course, some are deceptions, but others have real potential.
One of them, which I think has a real, practical application, is called Dash.
Dash – digital cash
First, Dash is ahead of the game in terms of convenience. At the moment, bitcoin transactions take an average of 10 minutes to an hour. Dash is going to be the main cryptocurrency that can be instantly (in less than a second) transferred between parties, making it much more practical when it comes to buying items online or in-store.
One of the most attractive features of Dash is that 10% of the newly minted coins are given to Dash DAO (Decentralized Autonomous Organization). Simply put, DAO is the treasure trove of Dash. At the current price of more than $ 600 per coin, it is $ 4 million a month that he can use.
You may know that no other coin has such ongoing funding. With this money Dash DAO can develop և sell currency.
In addition, anyone can come up with an idea for a project to increase the value of Dash. The project is then voted on by thousands of Dash developers. An example is partnering with stores to make Dash a viable way to bargain for their products.
Of course, these developers make money from Dash, so what benefits և contributes to the currency will be tempting.
This creates a circular effect where the currency rises in price as it is better financed, marketed, and then the DAO earns more money, it can market more Dash.
Breakthrough for Dash
To date, Dash can be used to purchase goods or services in over 300 physical stores և over 100 sites. But for that, progress can come from the marijuana industry.
At the moment, banks are not allowed to have anything to do with marijuana transactions. everything must be done in cash. The sellers can not even put the money from their sale in the bank.
Not only does this pose a risk of robbery, but these companies must pay for cash storage and transportation. It is growing rapidly.
The ability to use Dash will be huge for these vendors. That’s going to mean a lot for Dash’s price.
The good news is that it has already begun to make progress. In April, Dash partnered with a digital payment system called Alt Thirty Six, which works with the country’s leading dispensary business management software companies.
These software companies track the delivery services of hundreds of dispensaries. This means that Dash users already have hundreds of ways to use their currency.
Since Dash officially became a payment method on Alt Thirty Six on October 11, its price has increased by 118%. That is only in a month and a half.
Right from the beginning
With only $ 4.8 billion in market capitalization compared to $ 156 billion in bitcoin, I think Dash still has a long way to go.
The marijuana industry is just the beginning for Dash, but it’s great. In 2016, legal sales amounted to about $ 7 billion. Another $ 46 billion was sold in the market.
And as more stores open and more marijuana becomes legal in more states, that legal figure is expected to reach $ 23 billion by 2021 and $ 50 billion by 2026.
Again, this is just the beginning for Dash. Its unique direct transaction feature makes it a viable alternative to cash, giving it an edge over other cryptocurrencies such as bitcoin.