Cryptocurrencies are now in vogue.
Everywhere you see headlines with an impressive thousands of percent of profits for “coins” such as bitcoin. But what gives them value? Have you ever used bitcoin?
The truth is that now it is impractical, primarily because of the amount of time required to complete the transaction. But there are other coins that are becoming valid candidates for becoming a successful bitcoin as a cryptocurrency № 1.
There is much to understand about the intricacies of cryptocurrencies, but this article is more about finding investment opportunities than explaining the science behind them.
A bubble in bitcoins?
It is important to know the concept of “mining”. This is the very basis of cryptocurrency. This creates new bitcoins.
Simply put, the “miner” with the help of special software solves a complex mathematical problem and 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 traded, their mining becomes more complex, time consuming and less profitable. Thus, although about 80% of possible bitcoins are in circulation right now, the latter will not be mined until 2140.
As most people know, this year Bitcoin has experienced a giant rally. In fact, over the last year it has grown by about 1200%, which makes many people think it’s a bubble.
The total value of bitcoins in circulation is now more than $ 150 billion. If Bitcoin was a company, it would be in the top 50 largest in the United States.
I personally believe that the only reason bitcoin is much more valuable than any other cryptocurrency is that it was the first to break into the mainstream. However, this is still important. This at least gives other coin developers something to improve on.
The good thing is that even if you think you missed the boat with bitcoins, there are many other cryptocurrencies. Sure, some are scams, but others have real potential.
One that, in my opinion, has a real practical application is called Dash.
Dash: Digital Cash
First, Dash is ahead of the game in terms of convenience. Bitcoin transactions now take an average of 10 minutes to an hour. Dash is a basic cryptocurrency that can be transferred instantly (in less than one second) between parties, 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 newly minted coins are given to Dash DAO (decentralized autonomous organization). Simply put, DAO is a treasure trove of Dash. At the current price of over $ 600 per coin, that’s $ 4 million a month that he can use.
It is important to know that no other coin has such continuous funding. With this money Dash DAO can develop and sell currency.
In addition, everyone can present the idea of a project to increase the value of Dash. Thousands of Dash developers then 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 on Dash, so anything that benefits and promotes the currency will be attractive.
This creates a circular effect, if the currency rises in price because it is better financed and sold, then DAO earns more money and it can sell Dash even more.
Breakthrough for Dash
So far, Dash can be used in more than 300 physical stores and more than 100 websites to purchase goods or services. But a breakthrough for this could come from the marijuana industry.
Banks are now banned from engaging in marijuana transactions; everything needs to be made cash. Sellers can’t even put money from their sale into a bank.
Not only does it threaten to be robbed, but these companies have to pay for the storage and transportation of cash. It develops quickly.
The ability to use Dash would be huge for these vendors. It would also mean great things for the price of Dash.
The good news is that it has already begun to progress. In April, Dash partnered with the Alt Thirty Six digital payment system, which has partnered with some of the leading companies developing software to manage business in the country.
These software companies track transactions for hundreds of clinics and delivery services. This means that Dash users already have hundreds of ways to use currency.
Since Dash officially became a payment method on Alt Thirty Six on October 11, its value has risen 118%. It’s only a month and a half.
Just the beginning
With a market capitalization of just $ 4.8 billion compared to $ 156 billion in bitcoin, I believe Dash still has plenty of room for growth.
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 figure 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.