Cryptocurrencies are now in vogue.
Everywhere you see headlines with an impressive thousandth of a percentage of profits for “coins” such as bitcoin. But what gives them value? Have you ever used bitcoin?
The truth is that now it is not practical, primarily due to the amount of time required to complete the transaction. But there are other coins that become viable candidates for winning bitcoins, like the cryptocurrency №1.
Here much can be understood in the intricacies of cryptocurrencies, but this article is more about finding investment opportunities than about explaining the science behind them.
A bubble in bitcoins?
It is important to know one thing – the concept of “mining”. This is the very basis of cryptocurrency. This is how new bitcoins are created.
Simply put, “Miner” with the help of special software solves a complex mathematical problem and is eventually 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, mining them becomes more complex and time consuming, and less profitable. Thus, despite the fact that currently in circulation is about 80% of possible bitcoins, the latter will occur only in 2140.
As most people already know, this year Bitcoin hosted a giant rally. In fact over the past year it has increased by about 1200%, leaving many to 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 enter 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. 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 a boat with bitcoins, there are plenty of other cryptocurrencies. Sure, some are scammers, but others have real potential.
One that, in my opinion, has a real, practical use 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 defined as the main cryptocurrency that can be instantly (less than one second) transferred 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 – 10% of newly minted coins are given to Dash DAO (decentralized autonomous organization). Simply put, DAO is a treasure trove of Dash. At a current price of over $ 600 per coin it is $ 4 million a month that it can use.
It is important to know that no other coin has such permanent funding. With this money Dash DAO can develop and sell currency.
In addition, anyone can submit a project idea to increase the cost of Dash. Thousands of Dash developers then vote for the project. An example is partnering with stores to make Dash a viable means of bargaining for their goods.
Of course, these developers make money on Dash, so anything that brings and promotes currency will entice.
This creates a circular effect, if the currency rises in price because it is better to finance and sell, then DAO makes more money and it can promote Dash even more.
Breakthrough for Dash
So far, Dash can be used in more than 300 physical stores and on more than 100 sites to purchase goods and services. But a breakthrough for that could happen in the marijuana industry.
Now banks have no right to have anything to do with marijuana transactions; everything has to be done in cash. Sellers can’t even put money from sales into the bank.
Not only does this create a risk of being robbed, but these companies also have to pay for storing and transporting cash. It folds quickly.
The opportunity to use Dash would be huge for these sellers. It also means great things at the Dash price.
The good news is that it has already started to progress. In April, Dash entered into a partnership with a digital payment system called Alt Thirty Six, which has partnerships with some of the country’s leading business management dispensaries.
These software companies track transactions across 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 118%. It’s only a month and a half later.
Just the beginning
With a market capitalization of just $ 4.8 billion compared to $ 156 billion in bitcoins, I believe Dash still has plenty of room to move forward.
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, the legal amount is expected to be $ 23 billion by 2021 and $ 50 billion by 2026.
Again, this is just the beginning for Dash. The unique instant transaction feature makes it a viable alternative to cash, giving preference over other cryptocurrencies such as bitcoin.