next cryptocurrency to explode 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 have you ever used bitcoin?
The the fact is it’s not practical at this time, mostly as a result of the length of time it takes to complete a transaction. But you will find many more coins available that are emerging as viable candidates to succeed bitcoin as the No. one cryptocurrency.
There’s a great deal to understand about the intricacies of cryptocurrencies, but this article is more about finding an investment opportunity than explaining the science behind them.
A Bubble in Bitcoin?
One thing that’s vital that you learn is the notion of “mining.” This is the very basis of cryptocurrencies. That is exactly how new bitcoins are made.
In terms which are simple, 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 more complicated and time-consuming, and less profitable. So while about eighty % of possible bitcoins are in circulation at this time, the last one will not be mined until 2140.
As a lot of people know at this point, bitcoin has seen a gigantic rally this year. In reality, it is up about 1,200 % during the last year, causing a great deal of folks to think it’s in a bubble.
The complete value of bitcoins in circulation is now more than $150 billion. If bitcoin was a company, it will be in the top 50 largest in the United States.
I myself assume that the one reason bitcoin is so much more valuable compared to some other cryptocurrency is as it was the one that first broke through to the mainstream. That’s still significant, nevertheless. It, at the very least, gives other coin developers something to improve on.
The great thing is that even in case you think you’ve missed the boat with bitcoin, there are loads of other cryptocurrencies out there. In reality, many are scams, but others have real potential.
One of the ones that I believe has real, practical use is called Dash.
Dash: Digital Cash
First, Dash is in advance of the game in terms of convenience. Right this moment, bitcoin transactions take about ten minutes to an hour or so on average. Dash is setting out to be the primary cryptocurrency that can be transferred instantly (in under a single second) between parties, making it a lot more practical when it comes to buying things online or perhaps at a store.
On the list of most appealing features of Dash is that ten % of the newly mined coins are granted to the Dash DAO (decentralized autonomous organization). Basically, the DAO is the treasury of Dash. At the current price tag of more than $600 per coin, that’s four dolars million per month that it can make use of.
It’s important to know that no other coin has this kind of steady funding. With this money, the Dash DAO can develop and market the currency.
Additionally, anyone 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 viable means of transaction for their goods.
However, 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 as it is much better funded and marketed, then the DAO makes more cash, and it is able to market Dash even more.
A Breakthrough for Dash
Thus far, Dash can be used at more than 300 physical stores and more than 100 sites to get services or goods. But the breakthrough for it would come from the marijuana trade.
Today, banks are certainly not allowed to have anything to do with marijuana transactions; everything has to be carried out in cash. Vendors can’t even put money from their sales in a bank.
Not only does this bring the risk of being robbed, but these organizations have to pay for cash storage and transportation. Which adds up fairly quickly.
Being able to use Dash would be large for these vendors. It would also mean great things due to the price of Dash.
The best part is that it has already begun making progress. In April, Dash partnered with a digital payment system called Alt Thirty Six, which has partnerships with several of the leading dispensary business management software companies in the country.
These software companies track transactions for hundreds of dispensaries and delivery services. That means that Dash users already have hundreds of solutions to make use of the currency.
Since Dash officially became a payment method on Alt Thirty Six on October eleven, its price has gone up 118 %. That’s only 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 plenty of room to climb going forward.
The marijuana business is just the start for Dash, but it is a fantastic one. In 2016, legal sales were aproximatelly $7 billion. Another estimated $46 billion was sold on the black market.
And as more stores open and marijuana becomes legal in more states, that legal number is supposed to be twenty three dolars billion by 2021 and $50 billion by 2026.
Once again, this is just 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.