Cryptocurrencies are all the rage right now.
Everywhere, you see headlines with impressive 1000 percent gains for “coins” like bitcoin. But what gives them value? At what time ever used bitcoin?
The truth is it is not practical right now, largely as a result of the length of time it takes to complete a transaction. But there are other coins on the market that are emerging as viable candidates to succeed bitcoin as the No. one cryptocurrency.
There is a great deal to understand about the intricacies of cryptocurrencies, but this guide is more about finding an investment opportunity than explaining the science behind them.
A Bubble in Bitcoin?
Something that’s important to find out may be the concept of “mining.” This’s the very basis of cryptocurrencies. That is exactly how new bitcoins are made.
In terms which are easy, the “miner,” through special software, solves a complex math problem and is rewarded with new bitcoins as a result. Then, the transaction is stashed in the blockchain, and those new bitcoins are officially in circulation.
As more bitcoins are in circulation, mining them becomes more complicated and time-consuming, and much less profitable. So even though about eighty % of possible bitcoins are in circulation right now, the end one won’t be mined until 2140.
As many individuals know by now, bitcoin has seen a gigantic rally this year. In reality, it’s up about 1,200 % during the last year, causing a great deal of folks to think it’s in a bubble.
The total value of bitcoins in circulation has become over $150 billion. If bitcoin was a company, it will be in the top 50 largest in the United States.
I myself feel that the only reason bitcoin is a lot more valuable than other cryptocurrency is since it was the one that originally broke through to the mainstream. That’s still important, nevertheless. It, at the very least, gives other coin developers something to improve on.
The nice thing is that even in case you believe you’ve missed the boat with bitcoin, there are plenty of other cryptocurrencies out there. In reality, 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 ahead of the game in terms of convenience. Now, bitcoin transactions take about ten minutes to an hour or so on average. Dash is setting out to be the main cryptocurrency that can be transferred quickly (in less than a single second) between parties, which makes it considerably more practical with regards to buying things online or even at a store.
One of the most appealing features of Dash is that ten % of the newly mined coins are given to the Dash DAO (decentralized autonomous organization). To put it simply, the DAO is the treasury of Dash. At the present cost of around $600 per coin, that is $4 million per month that it can use.
It is important to know that no other coin has this form of continuous funding. With this money, the Dash DAO is able to develop and market the currency.
In addition, any person can submit an idea for a project to showcase the value of Dash. Then, the project is voted on by thousands of Dash developers. An illustration is partnering with shops to make Dash a viable means of transaction for their goods.
Naturally, these developers make money from Dash, so anything that benefits and promotes the currency is enticing.
This creates a circular effect, where the currency appreciates in cost because it is better funded and marketed, then the DAO makes extra cash, and it is able to market Dash even more.
A Breakthrough for Dash
So far, Dash can be used at more than 300 physical stores and more than hundred websites to buy goods or services. But the breakthrough for it could come from the marijuana trade.
Now, banks aren’t allowed to have anything to do with marijuana transactions; everything has to be completed in cash. Vendors can’t even put money from the sales of theirs in a bank.
Not simply does this bring the threat of being robbed, but these corporations must pay for cash storage and transportation. Which adds up fairly quickly.
Having the capability to use Dash will be large for these vendors. It’d also mean great things for the price of Dash.
The good news is it has already started making progress. In April, Dash partnered with a digital payment system called Alt Thirty 6, which has partnerships with some of the leading dispensary business management software companies in the nation.
These software companies track transactions for hundreds of dispensaries and delivery services. That means that Dash users already have hundreds of solutions to work with the currency.
Since Dash officially became a payment method on Alt 30 Six on October eleven, its price has gone up 118 %. That’s just in a month and also a half.
Just the Beginning
With a market cap of only $4.8 billion compared to bitcoin’s $156 billion, I believe Dash still has ample space to climb going forward.
The marijuana trade is only the start for Dash, but it is a terrific one. In 2016, legal sales were aproximatelly seven dolars billion. Another estimated forty six dolars billion was sold on the black market.
And ethlargementpill and marijuana becomes legal in even more states, that legal number is expected to be twenty three dolars billion by 2021 and $50 billion by 2026.
Yet again, this’s only the beginning for Dash. Its unique immediate transaction feature makes it a viable alternative to cash, giving it an edge over other cryptocurrencies like bitcoin.
Here is Why the Cryptocurrency Dash Puts Bitcoin to Shame
Cryptocurrencies are all the rage right now.