Cryptocurrencies are in vogue right now.
Everywhere, you see headlines with impressive gains of one thousand percent for “currencies” like bitcoin. But what gives them value? When have you ever used bitcoin?
The truth is that it is not practical at this time, mainly due to the amount of time it takes to complete a transaction. But there are other currencies that appear as viable candidates to succeed in Bitcoin as cryptocurrency no.
There are many things to understand about the complexities of cryptocurrencies, but this article is more about finding an investment opportunity than explaining the science behind it.
A bubble in Bitcoin?
One thing that is important to know is the concept of “mining”. This is the very basis of cryptocurrencies. This is how new bitcoins are made.
In simple terms, the “miner”, using special software, solves a complex mathematical problem 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 there are more bitcoins in circulation, exploiting them becomes more complicated and time consuming and less profitable. Thus, although about 80% of possible bitcoins are in circulation at this time, the latter will not be mined until 2140.
As most people already know, Bitcoin has seen a gigantic concentration this year. In fact, it has increased by about 1,200% over the last year, which makes a lot of people think it’s in 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 think the only reason Bitcoin is so much more valuable than any other cryptocurrency is because it was the one that first broke into the mainstream. But this is still important. At the very least, it offers other coin developers something to improve.
The best part is that even if you think you lost your ship with Bitcoin, there are many other cryptocurrencies. Sure, some are scams, but others have real potential.
One that I think has a real and practical use is called Dash.
Dash: digital cash
First, Dash is ahead of the game in terms of comfort. Right now, bitcoin transactions take an average of 10 to an hour. Dash is proposed as the main cryptocurrency that can be transferred instantly (in less than a second) between the parties, making it much more convenient when buying things online or in a store.
One of the most attractive features of Dash is that 10% of the newly minted coins are donated to Dash DAO (decentralized autonomous organization). Simply put, the DAO is Dash’s treasure. At the current price of over $ 600 per coin, that’s $ 4 million a month you can use.
It is important to know that no other currency has this type of ongoing funding. With this money, Dash DAO can develop and market the currency.
In addition, anyone can submit an idea for a project to enhance the value of Dash. Then the project is voted on by thousands of Dash developers. An example would be partnering with stores to make Dash a viable means of transaction for their products.
Of course, these developers make money with Dash, so anything that benefits and promotes the currency will be attractive.
This creates a circular effect, where the currency is appreciated in price because it is better financed and traded, the DAO makes more money and can trade Dash even more.
A breakthrough for Dash
To date, Dash can be used in over 300 physical stores and over 100 websites to purchase goods or services. But the breakthrough for that could come from the marijuana industry.
Right now, banks are not allowed to have anything to do with marijuana transactions; everything has to be done in cash. Sellers can’t even allocate money to their sales at a bank.
This not only carries the risk of being stolen, but these companies have to pay for storage and transportation in cash. This adds up quickly.
Being able to use Dash would be huge for these marketers. It would also mean great stuff for the price of Dash.
The good news is that it has already begun to move forward. In April, Dash partnered with a digital payment system called Alt Thirty Six, which has partnerships with some of the nation’s leading dispensary business management software companies.
These software companies track the transactions of 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 form of payment to Alt Thirty Six on October 11, its price has risen 118%. This is only in a month and a half.
Just the beginning
With a market cap of just $ 4.8 billion compared to Bitcoin’s $ 156 billion, I think Dash still has plenty of room to climb in the future.
The marijuana industry is just the beginning of Dash, but it’s fantastic. In 2016, legal sales were about $ 7 billion. It is estimated that $ 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 in 2021 and $ 50 billion in 2026.
Again, this is just the beginning of Dash. Its unique immediate transaction feature makes it a viable alternative to cash, giving it an advantage over other cryptocurrencies such as bitcoin.