Here's Why the Cryptocurrency Dash Puts Bitcoin to Shame
Headlines are everywhere about "coins" like bitcoin, making an impressive 1000% profit.
Cryptocurrencies are now on everyone's lips.
But what gives them value? When have you ever used bitcoin? However, there are other coins that have emerged as strong candidates to succeed Bitcoin as the number one cryptocurrency.
There is a lot to understand about the intricacies of cryptocurrencies, but this article is more about finding investment opportunities than explaining the science behind it.
Bitcoin bubble?
One thing you should know is the concept of "mining". This is the basis of virtual currency. This is how new Bitcoins are created.
Simply put, "miners" use special software to solve complex arithmetic problems and get rewarded with new bitcoins. Transactions are then stored on the blockchain and these new bitcoins are officially put into circulation.
The more bitcoin in circulation, the more complicated, time-consuming and less profitable mining becomes. So, while about 80% of all possible bitcoins are in circulation today, the last bitcoin won't be mined until 2140.
As most people know by now, Bitcoin has seen a massive rally this year. In fact, it has risen about 1,200% over the past year, leading many to believe it is a bubble.
Currently, the total value of Bitcoin in circulation is over $150 billion. If Bitcoin were a company, it would be one of the 50 largest in the US.
Personally, I think the only reason Bitcoin is worth so much more than any other cryptocurrency is because it first penetrated the mainstream. But it still matters. At least it gives other coin developers room to improve.
The good news is that if you think you've missed Bitcoin, there are plenty of other cryptocurrencies out there. Of course, some are scams, but others have real potential.
One of the things he thinks is actually practical is called Dash.
Dash: Digital Cash
First, Dash excels in convenience. Bitcoin transactions currently take an average of about 10 minutes to an hour. Dash aims to be the leading cryptocurrency that can be instantly (less than a second) transferred between parties, making it much more convenient when it comes to online or in-store purchases.
One of the most attractive features of Dash is that 10% of newly mined coins are committed to the Dash DAO (Decentralized Autonomous Organization). Simply put, Days are Dash's treasure trove. At current prices of over $600 per coin, you can spend $4 million per month.
It is important to note that no other coin is continuously funded like this.
With this money, Dash DAO will be able to develop and sell a currency.
Anyone can also submit ideas for projects that add value to Dash. The project is then voted on by thousands of Dash developers. An example would be partnering with stores to make Dash a viable vehicle for merchandise transactions.
Of course, these developers benefit from Dash, so anything that benefits and boosts the currency is attractive.
This creates a cyclical effect of increasing the price of the currency. This is because DAO will be able to make more money and sell more Dash due to improved fundraising and marketing.
Dash's breakthrough
To date, Dash can be used to purchase goods and services in over 300 physical stores and over 100 websites. But this breakthrough could come from the marijuana industry.
Banks are not currently permitted to engage in marijuana transactions. All must be paid in cash. The seller cannot even bank the money from the sale.
Not only does this expose them to robbery, but these businesses also have to pay for cash storage and transportation. It sums up quickly.
Being able to use Dash is very important to these providers.
The good news is that progress has already begun.
In April, Dash partnered with a digital payment system called Alt Thirty Six. Alt Thirty Six partners with the nation's leading pharmacy business management software companies.
These software companies track transactions for hundreds of pharmacies and delivery services. This means that Dash users already have hundreds of ways to use currencies.
Prices have risen 118% since Dash officially became the Alt Thirty Six payment method on October 11th. In the meantime, only a month and a half.
Just getting started
With a market capitalization of just $4.8 billion compared to Bitcoin's $156 billion, I think Dash has a lot of room to grow.
The marijuana industry is just the beginning of Dash, but it's a great one. Statutory sales in 2016 were approximately $7 billion. In addition, an estimated $46 billion has been sold on the black market.
And as more stores open and more states legalize marijuana, that legal figure is projected to reach $23 billion by 2021 and $50 billion by 2026. I'm here.
Again, this is just the beginning of Dash. Its unique instant trading capabilities make it a viable alternative to cash and give it an edge over other cryptocurrencies like Bitcoin.
Ian Dyer is one of Banyan Hill Publishing's top in-house analysts. He graduated from Duquesne University with a degree in finance.
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