Cryptocurrencies are all the rage right now.
Everywhere, you see headlines that make a remarkable 1,000 percent gain for "coins" like Bitcoin. But what gives them value? When have you ever used Bitcoin?
The fact is that it is not practical at the moment, primarily due to the amount of time it takes to complete the transaction. But other coins appear as successful candidates to succeed Bitcoin, such as Crypto # 1.
There is much to understand about the complexities of cryptocurrencies, but this article is about creating an investment opportunity rather than explaining the science behind it.
Bubble in Bitcoin?
One thing to know is the concept of "mining". This is the basis for crypto currencies. This is how new Bitcoin currencies work.
In simple terms, the "miner", through special software, solves the problem of complex mathematics and is rewarded using new Bitcoin coins as a result. The transaction is then stored in the blockchain, and these new bitcoins are officially traded.
As more bitcoins are in circulation, their mining becomes more complex, time-consuming and less profitable. Therefore, although about 80% of potential Bitcoin coins are currently circulating, the last one will not be mined until 2140.
As most people know so far, Bitcoin has seen a huge crowd this year. In fact, it has risen about 1,200% over the past year, causing many people to believe it in a bubble.
The total value of the concrete currency in circulation now exceeds $ 150 billion. If bitcoin is a company, it will be among the top 50 companies in the United States.
Personally, I think the only reason Bitcoin works is more valuable than any other cryptocurrency is that it was the first to break through the trend. This is still important, though. It, at least, gives other currency developers something to improve.
The good thing is that even if you think you missed the boat using bitcoin, there are a lot of cryptocurrencies out there. Of course, some are deceived, but others have real potential.
One of those 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 convenience. Currently, Bitcoin transactions take about 10 minutes to an hour on average. Dash is the basic cryptocurrency that can be instantly transferred (in less than one second) between parties, making it more practical when it comes to buying things online or at a store.
One of the most attractive features of Dash is that 10% of the newly extracted coins are offered to Dash DAO (an independent decentralized organization). Simply put, DAO is a Dash closet. At the current price of more than $ 600 per currency, $ 4 million per month can be used.
It is important to know that no other currency has this kind of ongoing funding. With these funds, Dash DAO can develop and market currency.
Also, anyone can submit an idea for a project to enhance the value of Dash. Then, the project was voted on by thousands of Dash developers. An example is a partnership with stores to make Dash a viable way for transactions related to their goods.
Of course, these developers make profits from Dash, so anything that takes advantage of the currency and boosts it will be attractive.
This creates a circular effect, as the currency is valued in price because it is financed and marketed better, then DAO raises more money and is able to market more Dash.
Breakthrough for Dash
So far, Dash can be used in over 300 real stores and over 100 websites to buy goods or services. But the breakthrough can be achieved because it is a marijuana industry.
At the moment, banks are not allowed anything to do with marijuana transactions; everything needs to be done in cash. Sellers can't even make money from their sales at a bank.
This not only brings the risk of theft, but these companies have to pay for cash storage and transportation. This adds quickly.
The ability to use Dash will be huge for these vendors. It could also mean great things for the price of Dash.
The good news is that they are already making progress. In April, Dash partnered with a digital payment system called Alt Thirty Six, which has partnerships with some of the country's leading business management software companies.
Software companies track these transactions for hundreds of dispensaries and delivery services. This means that Dash users already have hundreds of ways to use currency.
Since Dash officially became a form of payment on Alt Thirty Six on October 11, its price has risen by 118%. That's only in a month and a half.
Just the beginning
Given the market value of only $ 4.8 billion compared to $ 156 billion from Bitcoin, I think Dash still has plenty of room for future progress.
The marijuana industry is just the beginning of Dash, but it is one of the best features. In 2016, legal sales amounted to about $ 7 billion. An estimated $ 46 billion was sold on the black market.
As more stores are open and marijuana is legal in more states, the legal figure is expected to reach $ 23 billion by 2021 and $ 50 billion by 2026.
Again, this is just the beginning of Dash. Its unique instant transaction feature makes it a viable alternative, giving it an edge over other cryptocurrencies such as Bitcoin.