Cryptocurrencies are currently in vogue.
Everywhere you look today, the tide of protectionist sentiment is flowing. But what gives them value? When have you ever used bitcoin?
It is true that it is not practical at the moment, primarily due to the amount of time it takes to complete the transaction. But there are other coins that are emerging as viable candidates to inherit 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.
Bubble in Bitcoin?
One thing that is important to know is the concept of “mining”. This is the very basis of cryptocurrency. This is how new bitcoins are created.
Simply put, the “miner” solves a complex mathematical problem through special software and as a result is rewarded with new bitcoins. The transaction is then stored in a blockchain, and these new bitcoins are officially in circulation.
As more bitcoins are in circulation, their mining becomes more complex 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 know by now, bitcoin has experienced tremendous growth this year. In fact, it has grown by about 1200% in the past year, which is why many people think it is in a bubble.
The total value of bitcoin in circulation is now over $ 150 billion. If it was a bitcoin company, it would be among the 50 largest in the United States.
I personally believe that the only reason why bitcoin is so much more valuable than any other cryptocurrency is that it was the first to break into the mainstream. That is important though. This, at the very least, gives other coin creators something they can improve on.
The good thing is that even if you think you missed the ship with bitcoin, there are many other cryptocurrencies. Of course, some are scams, but others have real potential.
One of those that I believe has real, practical use is called Dash.
Dash: Digital Cash
First, Dash is ahead of the game in terms of convenience. Currently, bitcoin transactions take about 10 minutes to an hour on average. Dash is set up as the primary cryptocurrency that can be transferred instantly (in less than a second) between customers, which makes it much more convenient when it comes to buying things online or in a store.
One of the most attractive features of Dash is that 10% of newly minted coins are given to Dash DAO (decentralized autonomous organization). Simply put, DAO is the treasure of Dasha. 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 type of continuous financing. With this money, Dash DAO can develop and market currency.
Also, anyone can submit an idea for a project to improve the value of Dash. Then, thousands of Dash developers vote for the project. 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 uses and promotes currency will be tempting.
This creates a circular effect, where the currency rises in price because it is better financed and placed, then DAO earns more money and can place 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 could come from the marijuana industry.
Currently, banks are not allowed to have anything to do with marijuana transactions; everything has to be done in cash. The sellers can’t even put the money from the sale in the bank.
Not only does this carry the risk of robbery, but these companies have to pay for the storage and transportation of cash. That adds up quickly.
The possibility of using Dash would be great for these suppliers. 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 outpatient 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 on Alt Thirty Six on October 11, its price has risen 118%. It’s only for a month and a half.
Just the beginning
With a market capitalization of just $ 4.8 billion compared to bitcoin’s $ 156 billion, I believe Dash still has plenty of room to climb in the future.
The marijuana industry is just the beginning for Dash, but it’s great. In 2016, legal sales were about $ 7 billion. It is estimated that another 46 billion dollars were sold on the black market.
And as more and more stores open and marijuana becomes legal in more and more states, that legal figure is expected to be $ 23 billion by 2021 and $ 50 billion by 2026.
Again, this is just the beginning for Dash. Its unique feature of the current transaction makes it a viable alternative to cash, giving it an advantage over other cryptocurrencies like bitcoin.