Cryptocurrencies are all the rage now.
Anywhere you will see headlines, the earnings of “coins” such as Bitcoin have increased by a few thousandths. But what gives them value? When have you used Bitcoin?
The fact is that it is not currently feasible, mainly because it takes a lot of time to complete the transaction. But there are other coins that are becoming viable candidates to replace Bitcoin as the number one cryptocurrency.
There is a lot to know about the complexity of cryptocurrencies, but this article is more about finding investment opportunities than explaining the science behind it.
One important thing is the concept of “digging”. This is the basis of cryptocurrency. This is how to make a new Bitcoin.
In short, the “miner” solved a complex mathematical problem through special software, and thus obtained a new bitcoin. Then, the transactions are stored in the blockchain, and these new bitcoins are officially in circulation.
As more and more bitcoins are in circulation, mining them becomes more complicated and time-consuming, and profits decrease. Therefore, even if approximately 80% of bitcoins are currently in circulation, the last bitcoin will not be mined until 2140.
As most people know, Bitcoin has seen a huge rebound this year. In fact, it has risen by about 1,200% in the past year, making many people think it is in a bubble.
Now, the total value of bitcoins in circulation exceeds 150 billion US dollars. If Bitcoin were a company, it would rank in the top 50 in the United States.
I personally believe that the only reason Bitcoin has greater value than any other cryptocurrency is because it is the first currency to enter the mainstream. However, that is still important. At least, it provides some improvements for other coin developers.
The good news is that even if you think you missed Bitcoin, there are many other cryptocurrencies. Of course, some are scams, but others have real potential.
I think one of the tools that can be actually used is Dash.
Dash: digital cash
First of all, 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 as the main cryptocurrency and can be transferred instantly (less than a second) between parties, which makes it more practical when buying things online or in stores.
One of the most attractive features of Dash is that 10% of newly mined coins are allocated to Dash DAO (Decentralized Autonomous Organization). In short, DAO is Dash’s warehouse. At the current price of more than 600 U.S. dollars per token, it can use 4 million U.S. dollars per month.
It is important to know that no other token has this kind of continuous funding. With this money, Dash DAO can develop and sell the currency.
Similarly, anyone can submit a project idea to increase the value of Dash. Then, the project was voted by thousands of Dash developers. One example is working with stores to make Dash a viable method for trading their goods.
Of course, these developers make money from Dash, so anything that is conducive to currency appreciation will be tempting.
This creates a circular effect. In this case, the price of the currency rises because its funding and marketing methods are better, and then the DAO makes more money and is able to sell more Dash.
So far, Dash can be used in more than 300 physical stores and more than 100 websites to purchase goods or services. But its breakthrough may come from the cannabis industry.
Currently, banks are not allowed to have anything to do with marijuana transactions. Everything must be done in cash. Suppliers cannot even deposit the money from the sale in the bank.
This not only brings the risk of being robbed, but these companies have to pay for cash storage and transportation. This quickly adds up.
For these vendors, being able to use Dash will be huge. For the price of Dash, this also means great things.
The good news is that it has begun to make progress. In April, Dash partnered with a digital payment system called Alt Thirty Six, which established partnerships with some of the country’s leading pharmacy business management software companies.
These software companies track hundreds of transactions for pharmacies and delivery services. This means that Dash users already have hundreds of ways to use the currency.
Since Dash officially became Alt 36’s payment method on October 11, its price has risen by 118%. Only one and a half months.
Just the beginning
I think the market value of Dash is only 4.8 billion U.S. dollars, while Bitcoin is only 156 billion U.S. dollars. I think Dash still has a lot of room for growth.
The cannabis industry is only the beginning of Dash, but it is a great industry. In 2016, legal sales were approximately US$7 billion. It is estimated that 46 billion US dollars are sold on the black market.
With the opening of more stores and the legalization of marijuana in more states, the legal number is expected to reach US$23 billion by 2021 and US$50 billion by 2026.
Again, this is just the beginning of Dash. Its unique instant transaction function makes it a viable alternative to cash, giving it an advantage over other cryptocurrencies such as Bitcoin.