Cryptocurrencies are in vogue right now.
Everywhere you see titles with impressive thousands of percent earnings for “coins” like bitcoin. But what gives them value? When have you ever used bitcoin?
The truth is that it is not practical at the moment, mainly due to the time required to complete a transaction. But there are other coins that are emerging as viable candidates for the success of bitcoin as the number one cryptocurrency.
There is much to be learned about the intricacies of cryptocurrencies, but this article is more about finding an investment opportunity than explaining the science behind it.
One thing that is important to know is the concept of “extraction”. This is the very basis of cryptocurrencies. This is how the new bitcoins are made.
Simply put, the “miner” solves a complex mathematical problem with special software and as a result is rewarded with new bitcoins. The transaction is then stored in the blockchain and these new bitcoins are officially in circulation.
As more bitcoins are in circulation, digging them becomes more complicated and time consuming and less profitable. So, although about 80% of possible bitcoins are currently in circulation, the latter will not be mined until 2140.
As most people already know, bitcoin has seen a giant rally this year. In fact, it has grown by about 1,200% in the last year, which makes many people think it’s in a bubble.
The total value of bitcoins in circulation is now over $ 150 billion. If bitcoin was a company, it would be in the top 50 largest 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 one that broke into mass flow for the first time. This is still important. At the very least, it gives other coin developers something to improve on.
The good thing is that even if you think you missed the bitcoin boat, there are many other cryptocurrencies. Of course, some are scams, but others have real potential.
One of those that I believe has real, practical uses is called Dash.
Dash: Digital Cash
First, Dash is ahead of the game in terms of convenience. Bitcoin transactions currently take an average of about 10 minutes to an hour. Dash is set to be the main cryptocurrency that can be transferred instantly (in less than a second) between countries, making it much more practical when it comes to buying things online or in a 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 Dash’s treasure trove. At the current price of more than $ 600 per coin, that’s $ 4 million a month that he can use.
It is important to know that no other coin has this kind of continuous funding. With this money Dash DAO can develop and market the currency.
In addition, anyone can come up with an idea for a project to increase the value of Dash. The project was then voted on by thousands of Dash developers. An example would be partnering with stores to make Dash a viable transaction tool for their goods.
Of course, these developers make money from Dash, so anything that benefits and promotes the currency will be tempting.
This creates a circular effect in which the currency becomes more expensive because it is better financed and marketed, then DAO makes more money and is able to market Dash even more.
Breakthrough for Dash
So far, Dash can be used in over 300 physical stores and over 100 websites to purchase goods or services. But the breakthrough for him may come from the marijuana industry.
Currently, banks are not allowed to have anything to do with marijuana deals; everything has to be done in cash. Vendors can’t even invest money from their sales in a bank.
This not only carries the risk of being robbed, but these companies also have to pay for the storage and transportation of cash. This accumulates quickly.
The possibility of using Dash would be huge for these providers. That would also mean great things for the price of Dash.
The good news is that progress has already begun. In April, Dash partnered with a digital payment system called Alt Thirty Six, which has partnered with some of the country’s leading dispensary management software companies.
These software companies track transactions for hundreds of dispensaries and delivery services. This means that Dash users already have hundreds of ways to use the currency.
Since Dash officially became a payment method for Alt Thirty Six on October 11, its price has risen by 118%. This is only after a month and a half.
Just the beginning
With a market capitalization of just $ 4.8 billion compared to $ 156 billion on bitcoin, I believe Dash still has plenty of room to climb.
The marijuana industry is just the beginning for Dash, but it’s great. In 2016, legal sales were about $ 7 billion. Another $ 46 billion was sold on the black market.
And as more stores open and marijuana becomes legal in more states, that legal number is expected to be $ 23 billion by 2021 and $ 50 billion by 2026.
Again, this is just the beginning for Dash. Its unique instant transaction feature makes it a viable alternative to cash, giving it an edge over other cryptocurrencies such as bitcoin.