Cryptocurrencies are all the rage today.
Just about everywhere, you see headlines with impressive thousand % gains for “coins” as bitcoin. But what gives them value? At what time ever used bitcoin?
The the fact is that it is not practical right now, mostly as a result of the period of time it takes to complete a transaction. But there are other coins out there that are emerging as viable candidates to succeed bitcoin as the No. 1 cryptocurrency.
There’s much to understand about the intricacies of cryptocurrencies, but this report is more about finding an investment opportunity than explaining the science behind them.
A Bubble in Bitcoin?
One thing that’s important to determine is the notion of “mining.” This’s the very basis of cryptocurrencies. That is exactly how new bitcoins are made.
In straightforward terms, the “miner,” through special software, solves a complex math problem and is rewarded with new bitcoins as a result. Then, the transaction is stored in the blockchain, and those new bitcoins are officially in circulation.
As more bitcoins are in circulation, mining them becomes time-consuming and complicated more, and much less profitable. So even if about 80 % of possible bitcoins are in circulation at this time, the end one won’t be mined until 2140.
As a lot of people know by now, bitcoin has seen a gigantic rally this year. In reality, it’s up about 1,200 % over the past year, causing a lot of men and women to think it’s in a bubble.
The complete value of bitcoins in circulation is currently more than $150 billion. If bitcoin was a company, it will be in the top 50 most significant in the United States.
I personally feel that the only reason bitcoin is a lot more valuable than some other cryptocurrency is since it had been the one that initially broke through to the mainstream. That is nevertheless important, nevertheless. It, at the very least, gives other coin developers something to improve on.
The good thing is that even if you believe you’ve missed the boat with bitcoin, there are plenty of other cryptocurrencies out there. Naturally, some are scams, but others have real potential.
Among the ones that I believe has real, practical use is called Dash.
Dash: Digital Cash
First, Dash is in front of the game in terms of convenience. Now, bitcoin transactions take aproximatelly 10 minutes to an hour on average. Dash is setting out to be the primary cryptocurrency that can be transferred immediately (in only one ) that is second between parties, making it more practical when it comes to buying things online or even at a store.
Among the most appealing features of Dash is that 10 % of the newly mined coins are granted to the Dash DAO (decentralized autonomous organization). The bottom line is, the DAO is the treasury of Dash. At the present cost of over $600 per coin, that’s four dolars million per month that it can use.
It is crucial to know that no other coin has this sort of continual funding. With this money, the Dash DAO can create and market the currency.
In addition, any person is able to submit a concept for a project to improve the value of Dash. Then, the project is voted on by thousands of Dash developers. A good example would be partnering with shops to make Dash a practical means of transaction for the goods of theirs.
Obviously, these developers make money from Dash, so anything that benefits and promotes the currency will be enticing.
This creates a circular effect, where the currency appreciates in price because it is far better funded and marketed, then the DAO makes more cash, and it is able to market Dash even more.
A Breakthrough for Dash
So far, Dash can be used at over 300 physical stores and more than 100 websites to get services or goods. But the breakthrough for it is going to come from the marijuana industry.
Now, banks aren’t permitted to have anything to do with marijuana transactions; everything has to be accomplished in cash. Vendors cannot even put money from their sales in a bank.
Not merely does this bring the danger of being robbed, but these organizations must pay for cash storage and transportation. That adds up fairly quickly.
Having the capability to use Dash will be huge for these vendors. how many bitcoin are there would also mean things that are great for the cost of Dash.
The best part is it has already begun making progress. In April, Dash partnered with a digital payment system called Alt 30 Six, which has partnerships with some of the leading dispensary business management software companies in the nation.
Transactions for hundreds of dispensaries and delivery services is tracked by these software companies. That means that Dash users already have hundreds of systems to utilize the currency.
Since Dash officially grew to become a payment method on Alt Thirty Six on October 11, its price has gone up 118 %. That’s just in a half and also a month.
Just the Beginning
With a market cap of only $4.8 billion compared to bitcoin’s $156 billion, I believe Dash still has lots of space to climb going forward.
The marijuana trade is just the start for Dash, but it is a fantastic one. In 2016, legal sales were aproximatelly seven dolars billion. Another estimated forty six dolars billion was sold on the black market.
And as more stores open and marijuana becomes legal in even more states, that legal number is likely to be $23 billion by 2021 and $50 billion by 2026.
Yet again, this is only the beginning for Dash. Its unique immediate transaction feature makes it a viable replacement for cash, giving it an advantage over other cryptocurrencies as bitcoin.