The truth is that it’s not practical right now, primarily due to the amount of time it takes to complete a transaction. But there are other coins out there that are emerging as viable candidates to succeed Red BIOS Editor as the No. 1 cryptocurrency.
There’s a lot to understand about the intricacies of cryptocurrencies, but this article is more about finding an investment opportunity than explaining the science behind them.
In simple 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 more complicated and time-consuming, and less profitable. So even though about 80% of possible bitcoins are in circulation right now, the last one won’t be mined until 2140.
As most people know by now, bitcoin has seen a gigantic rally this year. In fact, it’s up about 1,200% over the past year, causing a lot of people to think it’s in a bubble.
I personally believe that the only reason bitcoin is so much more valuable than any other cryptocurrency is because it was the one that first broke through to the mainstream. That’s still important, though. It, at the very least, gives other coin developers something to improve on.
The good thing is that even if you think you’ve missed the boat with bitcoin, there are plenty of other cryptocurrencies out there. Of course, some are scams, but others have real potential.
First, Dash is ahead of the game in terms of convenience. Right now, bitcoin transactions take about 10 minutes to an hour on average. Dash is setting out to be the primary cryptocurrency that can be transferred instantly (in less than one second) between parties, making it much more practical when it comes to buying things online or at a store.
One of the most appealing features of Dash is that 10% of the newly mined coins are given to the Dash DAO (decentralized autonomous organization). Simply put, the DAO is the treasury of Dash. At the current price of more than $600 per coin, that’s $4 million per month that it can use.
Also, anyone can submit an idea for a project to enhance the value of Dash. Then, the project is voted on by thousands of Dash developers. An example would be partnering with stores to make Dash a viable means of transaction for their goods.
This creates a circular effect, where the currency appreciates in price because it’s better funded and marketed, then the DAO makes more money, and it’s able to market Dash even more.
So far, Dash can be used at over 300 physical stores and over 100 websites to purchase goods or services. But the breakthrough for it could come from the marijuana industry.
Right now, banks are not allowed to have anything to do with marijuana transactions; everything has to be done in cash. Vendors can’t even put money from their sales in a bank.
The good news is that it has already started making progress. In April, Dash partnered with a digital payment system called Alt Thirty Six, which has partnerships with some 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 ways to use the currency.