Cryptocurrencies are all the rage right now.
Everywhere, you’ll find titles with impressive thousands of percent wins for “coins” like bitcoin. But what gives them value? When did you use bitcoin?
The fact is that it is not practical today, especially given the length of time it takes to complete a transaction. But there are other coins out there that have emerged as candidates that could succeed bitcoin as No.
There is a lot to understand about the intricacies of cryptocurrencies, but this article is more about finding an investment opportunity than explaining the science behind it.
A Bitcoin Bubble?
One thing that is important to know is the concept of “mining.” This is the basis of cryptocurrencies. That’s how to create new bitcoins.
In simple terms, the “miner,” through special software, solves a complex mathematical problem and is rewarded with new bitcoins as a result. Then, the transaction is stored on the blockchain, and those new bitcoins are officially in circulation.
As more bitcoins are in circulation, mining them can be more complicated and time consuming, and less profitable. So even if about 80% of possible bitcoins are in circulation now, the last one won’t be mined until 2140.
As most know by now, bitcoin has seen a huge rally this year. In fact, it went up about 1,200% last year, which is why a lot of people think it’s a bubble.
The total value of bitcoins in circulation is now over $ 150 billion. If bitcoin is a company, it is in the top 50 largest in the United States.
I personally believe that the only reason bitcoin is more valuable than any cryptocurrency is because it was the first to penetrate the mainstream. But that is still important. This, at the very least, gives other coin developers something to improve.
The good thing is that even if you think you haven’t got the boat with bitcoin, there are plenty of other cryptocurrencies out there. Of course, some are scams, but others have real potential.
One that I believe has a real, practical tool is called Dash.
Dash: Digital Money
First, Dash leads the game in terms of ease. Currently, bitcoin transactions take about 10 minutes to an hour on average. Dash is set to become the primary cryptocurrency that can be transferred instantly (in less than a second) between parties, which is especially 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 mined coins are donated to Dash DAO (decentralized autonomous organization). Simply put, DAO is the backbone of Dash. At the current price of over $ 600 per coin, that’s $ 4 million per month available to it.
It is important to know that no other coin has this type of ongoing funding. With this money, Dash DAO will be able to develop and sell the money.
Also, anyone can submit an idea for a project to increase the value of Dash. Then, the project was voted on by thousands of Dash developers. One example is partnering with stores to make Dash a practical transaction method for their items.
Of course, these developers make money from Dash, so anything that benefits and promotes money can be attractive.
This creates a circular effect, where the currency appreciates the price because it is better funded and traded, then the DAO makes more money, and it is able to sell the Dash though.
An Improvement for Dash
Currently, Dash can be used in more than 300 physical stores and more than 100 websites to purchase goods or services. But the success for this could come from the marijuana industry.
Currently, banks are not allowed to have any involvement in marijuana transactions; everything has to be done with money. Vendors can’t even put money out of their sales in a bank.
Not only does this carry the risk of theft, but these companies have to pay for saving money and transportation. That adds up immediately.
Being able to use Dash can be great for these vendors. It also means a lot of things for the price of the Dash.
The good news is that it’s already starting to improve. In April, Dash partnered with a digital payment system called Alt Thirty Six, with partnerships with some of the nation’s leading dispensary business management software companies.
These software companies track transactions for hundreds of dispensaries and delivery services. That means Dash users already have hundreds of ways to spend money.
Since the Dash officially became the payment method of Alt Thirty Six on Oct. 11, its price has risen 118%. That was in just a month and a half.
Just the Beginning
With a market cap of only $ 4.8 billion compared to bitcoin’s $ 156 billion, I believe Dash still has a lot of room to climb ahead.
The marijuana industry was just the beginning for Dash, but it was a good one. In 2016, legal sales were about $ 7 billion. Another estimated $ 46 billion was sold on the black market.
And while many stores will open and marijuana will be legal in many 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. The unique immediate nature of the transaction makes it a practical alternative to money, giving it superiority over other cryptocurrencies such as bitcoin.