Cryptocurrencies are the rage right now.
Everywhere you see titles with an impressive thousands of coin profits like bitcoin. But what gives them value? When did you ever use bitcoins?
The truth is that it is not practical at the moment, mainly because of the time it takes to complete a transaction. But there are other coins that are emerging as viable candidates for bitcoin success as cryptocurrency # 1.
There is much to understand about the intricacies of cryptocurrencies, but this article is more about finding an opportunity for investment than explaining the science behind them.
One thing that is important to know is the concept of "mining". This is the very basis of cryptocurrencies. That's how new bitcoins are made.
Simply put, the "miner" solves a complex mathematical problem through special software and as a result rewards himself with new bitcoins. The transaction is then stored in the blockchain and these new bitcoins are officially in circulation.
As more bitcoins are in circulation, their production becomes more complex and time consuming and less profitable. So while about 80% of possible bitcoins are currently in circulation, the latter will not be harvested until 2140.
As most people know by now, Bitcoin saw a giant rally this year. In fact, this is about 1200% over the last year, which makes many people think that it's in a bubble.
The total value of Bitcoins in circulation is already over $ 150 billion. If bitcoin was a company, it would be in the top 50 of the largest in the United States.
I personally believe that the only reason Bitcoin is so much more valuable than any other cryptocurrency is because it is the first to break into the main stream. This is still important. At the very least, it gives other coin developers something to improve.
The nice thing is that even if you think you missed the boat with bitcoins, there are many other cryptocurrencies out there. Of course, some are scams, but others have real potential.
One of those I believe has real, practical use is called Dash.
Dash: Digital Cash
First, Dash is ahead of the game in terms of convenience. Currently, Bitcoin transactions take an average of 10 minutes to an hour. Dash is the main cryptocurrency that can be transferred instantly (in less than one second) between the parties, which makes it much more practical when it comes to buying things online or in-store.
One of the most attractive features of Dash is that 10% of newly acquired coins are given to Dash DAO (decentralized autonomous organization). Simply put, DAO is Dash's treasure. At the current price of over $ 600 per coin, that's $ 4 million a month that he can use.
It is important to know that no other coin has this type of permanent funding. With this money, Dash DAO can develop and market the currency.
In addition, anyone can come up with an idea for a Dash Value Project. The project was then voted on by thousands of Dash developers. An example is partnering with stores to make Dash a viable means of transacting their goods.
Of course, these developers make money from Dash, so anything that benefits and promotes currency will be tempting.
This creates a circular effect whereby the currency values the price as it is better funded and sold, then the DAO makes more money and can market Dash even more.
Dash for dash
For now, Dash can be used in over 300 physical stores and over 100 websites to purchase goods or services. But the breakthrough for him may come from the marijuana industry.
Currently, banks have nothing to do with marijuana transactions; everything has to be done in cash. Sellers can't even invest their money in a bank.
Not only does it carry the risk of being robbed, but these companies have to pay for money storage and transportation. This is quickly added.
The ability to use Dash would be enormous for these vendors. That would also mean great things for the Dash price.
The good news is that it has already started to progress. In April, Dash partnered with a digital payment system called the Alt Thirty Six, which has partnerships with some of the leading dispensary management software companies in the country.
These software companies track transactions for hundreds of dispensaries and delivery services. This means that Dash users already have hundreds of ways to use the currency.
Since Dash officially became the payment method of the Alt Thirty Six on October 11, its price has increased by 118%. It's only after a month and a half.
Only the beginning
With a market cap of just $ 4.8 billion compared to bitcoin of $ 156 billion, I believe Dash still has a lot of room to go back and forth.
The marijuana industry is just the beginning of Dash, but it's great. In 2016, legitimate sales were about $ 7 billion. Another estimated $ 46 billion was sold on the black market.
And as more stores open and marijuana becomes legal in more states, the legal number is expected to be $ 23 billion by 2021 and $ 50 billion by 2026.
Again, this is just the beginning for Dash. Its unique instant transaction feature makes it a viable alternative to cash, giving it an edge over other cryptocurrencies such as bitcoin.