Learn more about the pros and cons of investing in Dash which would push you ahead to know if investing in Dash is a good idea.
Dash may be the missing digital asset that could bring huge gains to your portfolio of investments. In this article, we are going to look at why you as a trader or investor, may consider investing in Dash, the pros and cons, and the most important factors to look out for.
Before investing in Dash, you must do fundamental and technical analysis to be able to understand what you are getting your hard-earned money into. Investing in Dash as an unsophisticated investor typically increases your chances of making huge losses.
First and foremost, Dash has all the components of a cryptocurrency. It is not an entirely new payment protocol like Ethereum, Tron, or Cardano. It followed in the footsteps of Bitcoin, Litecoin, and Dogecoin to challenge the traditional banking systems in terms of how money should be used.
Dash, unlike smart contract blockchains, has the primary function of serving as a transactional currency.
While this presents a great opportunity in terms of investments, you must take into perspective that Dash has several competitors which provide the same functions. Aside from that, some blockchains have introduced smart contracts which are providing decentralized lending, yield aggregation, insurance, and exchanges. The novel tokens of such blockchains are being powered by several factors and not integrations and adoptions of their cryptocurrencies as options of payments. This means that there are negatives to watch out for since no asset whether cryptocurrency, stock, bond, metal or commodity is perfect.
If you are interested in jumping onto the crypto wagon as soon as possible to purchase or invest in DASH, you can check out the eToro exchange and trade with 0% commission.
- What is Dash?
- The Pros of Investing In DASH
- The Cons of Investing in DASH
- How To Invest In DASH?
- Conclusion - So, Is Dash A Good Investment In 2021?
- Will Dash Be A Millionaire-Maker?
What is Dash?
Dash is an open-source blockchain and cryptocurrency that allows users to send and receive money without any intermediaries such as insurance companies, clearinghouses, or traditional banks. Dash offers a global payment network that is extremely affordable. Evan Duffield and Kyle Hagan founded Dash in 2014.
Dash effectively exists as two separate entities that are interrelated.
- Dash Network is the blockchain that facilitates the settling of financial transactions.
- DASH is the digital currency that powers the Dash Network.
There are two primary ideas behind the creation of Dash.
- Dash was created to solve the scalability issue which was earlier on associated with parent crypto Bitcoin. Dash facilitates the sending and receiving of money in a relatively faster manner which comes at a cheaper cost.
- Dash was also created to provide privacy during transactions since blockchains have a public ledger that is open to the public. This is the main reason why it started as XCoin in January 2014 and later rebranded itself to Darkcoin in February 2014. It became Dash in March 2015 after several illegal activities were facilitated through the cryptocurrency.
Several years after Dash was introduced to the global world, one of the largest news websites in Germany, DER SPIEGEL, pointed out that Dash is the most popular cryptocurrency in Venezuela.
Due to the Southern American economy in dire straits, DASH has become one of the digital currencies which facilitate most of the financial transactions for citizens of Venezuela and other Latin American countries.
Dash fostered a great partnership with Brazilian Exchange, Coinbene, in 2019. This partnership gave consumers and merchants options of using cryptocurrency. They could use DASH to buy, sell, or HODL for a relatively higher price in the future which can earn them profit.
Throughout the years, digital cash, DASH has served as one of the main digital currencies for online transactions. This has alerted several analysts and experts about the potency of cryptocurrency on the market. While some analysts consider Dash a good investment in 2021 and beyond, others are not so bullish.
Some of them question the legitimacy of some of its features such as PrivateSend as to how private it is. Others have opined Dash is not relying much on innovation to foster its adoption. All in all, what are the pros and cons which can better define the positions of several analysts? Is it a good idea to invest in DASH?
Let us take a look at several factors which can aid you in deciding whether to invest in DASH.
The Pros of Investing In DASH
What Are The Benefits Of Investing In DASH?
Several news and price forecasts by crypto analysts and so-called experts estimate DASH has a future that makes it an attractive investment for novice and experienced traders and investors. Here is a quick overview as to why DASH is a good investment in 2021 and beyond.
âœ… Dash Has a Great Team behind Its Continuous Development
Dash has been able to survive as a major altcoin because of its team. There are four strong teams behind the promotion, usage, and continuous development of the Dash network and cryptocurrency. They are Dash Investment Foundation, Dash Roots, and Dash Core Group.
The Dash Investment Foundation like the other foundations behind other blockchains searches for investment opportunities that would bring liquidity to Dash. The members do all they can to promote DASH as a cryptocurrency that can be used by several people across thousands of online merchants as a payment option.
The Dash Core Group is the team in charge of the development of the payment network as well as the cryptocurrency. The group comprises tech-savvy members who continuously develop software upgrades to help provide new and improved solutions to the old ways of going about financial transactions. Additionally, the group through Dash’s digital addresses informs fans of the cryptocurrency and the whole crypto finance space about upgrades, partnerships, and integrations in the form of blogs (short and long).
The Dash Roots ensures equality in the disbursement of funds for projects. Several developers would want to contribute software solutions to the dash network. Unfortunately, they may not have access to funds. Dash Roots ensures everyone has an equal chance of getting funds. In this process, they serve as a crowdfunding platform that brings innovative minds to add up to the technological minds already existent in the Dash Core Group.
Dash Next drives the adoption of DASH around the world.
The teams play an invaluable role in how far Dash has come considering the other altcoins which went into extinction zones and never to be heard off again. Through their efforts, Dash has forged significant partnerships which have brought great activity on the cryptocurrency and its market capitalization.
âœ… Dash’s Has a Privacy Feature Which Is Unique to Blockchains
Dash has a feature called PrivateSend. This feature allows users to carry on with transactions in an anonymous manner. The PrivateSend option works through high-level mixing of denominations to carry out transactions.
Blockchain technology brought decentralization. Unfortunately, the ledgers are public which is open to anyone no matter where they are in the world so long as they have internet access. Several people are not interested in leaving traits of their activities online.
As a result, this feature associated with a particular cryptocurrency such as DASH is extremely vital in their usage of digital assets. More people who prefer anonymity in their transactions opt to use DASH for their transactions instead of others. This brings huge activity to the digital asset, provides huge liquidity, and reflects positively in the token’s valuation on the market.
Read Also: How to Invest in Dash
âœ… Dash Has a Secured Network and Reaches Consensus Easily
The dash protocol comprises a dual network mining (miners) and maintenance system (master nodes) that allows great security and flexibility. Although Dash is a major altcoin, it decided to forgo proof-of-work which was employed by Bitcoin and Ethereum on its 1.0 network. Instead, Dash uses the X11 mining algorithm which secures its network. This is the reason why we have not heard any cases of hackers breaking into DASH and running off with a substantial amount of digital coins.
Dash relatively reaches consensus on decisions much easier than its competitor (Bitcoin) in its primary function as a transactional currency. This is attributed to its governance system. This helps Dash to speed up the process of transactions.
âœ… Dash Scales Relatively Faster and Has High Daily Use Rates
Using a modified version of the proof-of-stake (POS) algorithm X11, master nodes, a subset of Dash users run its network. Masternodes bring simplicity to how transactions are verified and validated. This is why dash scales faster and handles more transactions per second than BTC and ETH. Dash processes 30 to 56 transactions per second.
In comparison to others, Ethereum running on its old network processes 15 to 30 transactions per second, and Bitcoin processes 4.6 transactions per second. Faster transactions free the network of congestion. A smooth operating network comes with relatively lower transaction fees. DASH has an average transaction fee of $0.010263. In comparison to BTC as a transactional currency, the parent crypto has a fee of $20.01 which is more than 100 times the fee of digital cash.
Dash has a feature called InstantSend. Relying on its fast scaling times, using this option helps users to send and confirm transactions in a few seconds. Other blockchains such as BTC can take up to an hour or even a day to confirm transactions.
In the last 24 hours up to the time of writing, there were 42,882 transactions settled through DASH worth $75.89 million.
âœ… Dash Has Improved Trade Volume
A trade volume is one of the important factors you should consider when you decide to invest in Dash. Although it does not give an exclusive overview of the potential of a digital asset, it alerts traders and investors to activity on the cryptocurrency.
At the time of writing, DASH had a trading volume of $1.85 billion.
Dash started the journey of following BTC into mainstream acceptance with the likes of LuckyCoin, Nxt, Mastercoin, and Peercoin. Currently, the place of those cryptocurrencies has been taken by Bitcoin Cash (BCH), Ethereum (ETH), Stellar (XLM), and Chainlink (LINK) among others. As soon as trade volumes started to go down, their overall valuation decreased daily and took them out of the cryptocurrency discussion.
With such a volume being recorded daily, traders and investors have confidence in the asset which is great for its price in the future.
Check Out: Should You Buy Dash?
âœ… Dash Has a Maximum Supply
Dash has a maximum supply of 18,900,000. At the time of writing, 54% which is represented by 10,120,867.46 has been mined. In the not-too-distant future, several price forecasts by analysts and experts about the potential bull run of DASH could be attributed to scarcity.
According to the Editorial Team of Indeed, “Scarcity of goods plays a significant role in affecting competition in any price-based market. Because scarce goods are typically subject to greater demand, they often command higher prices as well.”
Once the maximum supply has been mined, if the Dash Core Group does not embark on the same journey as Dogecoin, demand will exceed supply. The resultant effect is a substantial increase in price which could take the cryptocurrency to new highs and bring gains to traders and investors.
âœ… Dash Has Several Partnerships Fostering Its Adoption
Dash has forged several partnerships over the years. The current partnership which brings huge exposure to the cryptocurrency is with CRAYPAY.
CrayPay tags itself as a universal rewards platform that can be used on every item purchased. It instantly saves people money at over 150,000 locations. In January 2021, Dash Investment Foundation provided funds to CrayPay.
The DASH cryptocurrency would be integrated as an option of payment on 155,000 merchants and 75 retail websites across America. Dash was chosen due to its low transaction fees as it would help people save more money when compared to bank cards.
According to Coinmap.org, this partnership could be a new milestone for DASH as the cryptocurrency could surpass BTC as the leading payment method in the United States under the cryptocurrency category.
Other partnerships which have seen DASH flirt with smart contracts and decentralized applications include StakeHound. Through Ethereum, holders of DASH can generate additional yield and earn staking rewards through StakedDASH.
Other partnerships include Secure Digital Markets which would increase the liquidity provision of Dash. Dash’s low fee is also proving valuable to help the company.
Dash’s partnership with Coinbene Exchange has brought exposure to the cryptocurrency in terms of buying, selling, and holding.
This is the main reason why DASH is used alongside Litecoin (LTC) and Bitcoin (BTC) as options of payments at hotels and famous pizza chains in Venezuela.
These are strong factors which could see DASH rally to a $1,000 price milestone.
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The Cons of Investing in DASH
Some of the negative factors which could make investing in DASH a bad idea are briefly discussed below.
âŒ Questions Marks around Its Decentralized Status
DASH along with other cryptocurrencies is known to be decentralized. This means that there is no single individual or a group of people who makes key decisions for the digital asset in terms of validation or verification. While cryptocurrencies such as Bitcoin are extremely decentralized, DASH has several loopholes in its decentralized status.
This is because there are over 4,500 members who vote on key decisions. Additionally, the Dash Core Group, Dash Investment Foundation, and Dash Next are three groups that decide on the future of the network and cryptocurrency.
Another example has been attributed to the masternodes. There is strong speculation among the Dash Community that most of the masternodes are run by the development team of the protocol. This does not bode well for the digital cash which molded itself after Litecoin and Bitcoin.
âŒ Not Focused on Being Adopted for its Innovation
Dash unlike Peercoin, Nxt, Luckycoin, Mastercoin, and Auroracoin has been able to survive. DASH commands a relatively healthy price compared to its earlier competitors whose names are archived on search engines.
As a result, the developers behind the technology have relaxed and are solely interested in forming partnerships which would see DASH integrated into several merchants worldwide.
This is not helping the cryptocurrency. Modern investors as a result of decentralized applications (DAPPS) are throwing their money behind cryptocurrencies that have the backing of smart contract chains.
This is the main reason why Ether currently commands a relatively higher price than DASH. This is the same reason why Cardano (ADA) with no real use case has reached a new all-time high, has several developers working on its platform, and records huge volumes in billions of dollars daily.
Heading into the future, there is a huge chance that cryptocurrencies without DAPPS could struggle to compete for traders and investors. Once this happens, investor confidence in DASH could drop and see the cryptocurrency lose its current grip in the crypto finance space.
âŒ DASH faces Infinite Competition
DASH has the primary purpose of serving as a transactional digital currency. It does not run smart contracts under decentralized lending, insurance, exchange, or yield aggregation. Pioneers of cryptocurrency such as Bitcoin (BTC) and Litecoin (LTC) also play the same role.
BTC is listed on millions of merchants worldwide. Litecoin is also listed globally. Additionally, LTC is the official cryptocurrency of the Miami Dolphins of the National Football League (NFL). Such partnership brings mileage to Charlie Lee’s cryptocurrency.
With BTC having a first-mover advantage and Bitcoin Cash (BCH) introduced into the decentralized finance space as a transactional currency that offers relatively lower transaction costs, DASH faces infinite competition for the same virtual numbers.
Ether (ETH) powers the Ethereum network but can also be used as a transactional currency. Tron (TRX) powers the Tron network but can be used as a digital currency that has a transaction fee of $0.
In the last 24 hours up to the time of writing, DASH has a transaction count of 42,882 which is worth $75.89 million.
Bitcoin Cash has a transaction count of 122,327 which is worth $5.29 billion.
Litecoin has a transaction count of 126,521 which is worth $690.18 million.
Ether has a transaction count of 1,530,000 which is worth $19.23 billion.
Bitcoin has a transaction count of 306,397 which is worth $17.59 billion.
From the statistics provided, you can see that digital cash lacks transaction counts. DASH is just a fraction of the amount of money transacted by its competitors. ETH is commanding huge volumes because it powers transactions on the Ethereum network as well as its integrations on merchants.
The team behind DASH would have to act sooner rather than later to stay in the competition for the long term. Without innovation, they could fall short and not survive the competition.
âŒ DASHs Privacy Feature May Have Some Loopholes
The privacy feature works in a process called MIXING. Several users of DASH and crypto enthusiasts have opined that the process is nothing more than a coin tumble. As per the comments being passed out on several Dash forums, the MIXING process could be reversed or traced if someone controls the masternodes that the transaction passes through.
With several schools of thought pointing a finger at the team behind DASHs development as having the majority of masternodes, they may have the records of all transactions facilitated through the PRIVACY feature. This does not bode well for a project that falls into a decentralized finance zone and does not help its extensive adoption in the future.
As an e-learning organization, we understand the buzz around cryptocurrencies has brought several unsophisticated traders and investors into the cryptocurrency and blockchain space. Unsophisticated traders and investors are individuals who do not do any analysis (fundamental or technical) to be able to understand the future price patterns of a digital asset.
As a result, several people are investing their hard-earned money and are making huge losses in the process. It’s difficult to fathom since all the assets seem to be going up. Cryptocurrencies are extremely volatile. Understand risk, price, and percentage change and how it can help your decisions in the future.
Due to cryptocurrencies' unpredictable nature, invest an amount of money you are willing to lose. On the other hand, spread your investment into several cryptocurrencies as well as other assets so that you do not lose all your investments in a short time.
Any investment made should double in 5 years. With the current crypto boom, people cannot wait that long. But whatever happens, BUY and HOLD and see what an investment can take you in the long term.
Read More: Dash Price Prediction for 2025 and 2030
How To Invest In DASH?
DASH is listed on several exchanges and brokerages. eToro is the exchange we would like to recommend for your investments. eToro is credible and authentic. The company has all the necessary certifications and licenses which categorizes it under the top 10 best exchanges globally.
Follow the steps below to buy your first DASH coins.
The FIRST STEP is to SIGN UP.
The SECOND STEP is to VERIFY YOUR ACCOUNT.
The THIRD STEP is to DEPOSIT FUNDS.
The FOURTH STEP is to NAVIGATE to the DASH page and purchase your first DASH.
Conclusion - So, Is Dash A Good Investment In 2021?
As an investor, you should take into account the reward an investment could bring you against potential risks. Do the potential rewards of investing in Dash outweigh the potential losses associated with the risks?
Dash uses the basic technology associated with blockchain and cryptocurrency which makes it a risky investment. DASH has a finite supply which could trigger the forces and demand and supply but it is still miles behind in terms of challenging the main rivals. Additionally, DASH is not among the most popular cryptocurrencies. Neither is it one of the largest digital assets in the crypto finance space.
On the other hand, Dash is gradually becoming mainstream for its use in developing countries such as Venezuela, Colombia, and the whole South American region. Its creators have also forged strong partnerships which gives the cryptocurrency mileage across thousands of online retail outlets. This makes digital cash one of the main financial instruments which could balance your portfolio and bring potential returns.
To put it simply, Dash like all cryptocurrencies is a risky investment that could result in massive rewards. Since Dash may be a good investment, you should do fundamental research and read technical analysis before making an investment decision on the asset.
Therefore, does investing in DASH work? If you are poised on taking the time to do strong research about the crypto asset, then the digital asset could do well for you.
DASH is a good investment according to experts. Digital Coin Price estimates the price of DASH could have a trading value of $579.19 by the end of 2021. Analysts at The Economy Forecast Agency, also known as Long Forecast believe the price of DASH could to be valued at $1,100 by the end of 2021.
On 15th February 2021, it was reported that OIN has partnered with DASH NEXT to bring an optimized Stablecoin solution.
OIN is the platform that helps users stake rewards or yields insurance which are specifically designed to handle altcoins. Because of this partnership, users of DASH can remain in the crypto finance space and manage the volatility associated with the digital asset. If there are price fluctuations that could see them make losses, all they have to do is to switch over to a stable asset without leaving the entire cryptosystem.
With such a partnership at hand, coupled with Dash being available on 155,000 merchants, more liquidity would be pouring into the cryptocurrency. With more users comes more investor interest which leads to more volumes. A substantial increase in volume would affect the overall valuation of DASH in 2021 and beyond.
Such partnerships are what has seen Previsioni Bitcoin estimate DASH to have a trading price of $1,132.79 by the end of 2021. With the price prediction of the website in perspective, you could see a return of at least 100% on your investment by the end of the year.
DASH could be the digital asset needed to shield you against losses or bring huge gains to brighten up your portfolio.
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Will Dash Be A Millionaire-Maker?
Dash could be a millionaire-maker in the future depending on its current price and the future price you would like to let your investments go for. According to experts at Coin Price Forecast, DASH could have a trading price of $1,539 by the end of 2021. The experts further forecast the price of DASH to be $10,000 by the year’s end of 2031.
At $400, purchasing 100 DASH would cost you ($400×100), which equals $40,000. If you decide to HODL (hold the asset for the long term) and the digital currency reaches the estimated price milestone of $10,000, DASH could become a millionaire maker. This is because your 100 DASH multiplied by $10,000 equals $1,000,000.
With several integrations from partnerships and innovation, DASH could command a huge trading price in the future. Dash always follows BTC and the parent crypto still commands a strong buy rating. Suppose there is a rally of Bitcoin in the future, you could bet that digital cash would follow in the footsteps of digital gold and could bring huge gains to investors in the future.
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Is Dash Better Than Bitcoin?
Dash (DASH) and Bitcoin (BTC) are extremely similar in terms of providing the same function. They are different concerning how they scale transactions.
Bitcoin is the parent crypto of the decentralized finance space. Bitcoin’s template was used as a guide for the creation of other blockchains and their novel tokens. Dash was forked from Litecoin which was also forked from Bitcoin.
Dash has an advantage over Bitcoin with regards to scalability. The average transaction time for Dash is 2 minutes and 39 seconds. Dash processes 30 to 56 transactions per second due to its X11 algorithm. Bitcoin can take an hour to a day to confirm transactions due to its longstanding SHA-256 proof of work algorithm.
At the moment, Dash has surpassed BTC in terms of the largest cryptocurrency accepted as a payment method in the United States.
Globally, Bitcoin (BTC) leads the way in terms of cryptocurrency being used as an option of payment.
Bitcoin (BTC) has an advantage over Dash with regards to its first-mover advantage as the first cryptocurrency. Bitcoin has moved on from a mere transactional currency and become a store of value. It’s referred to as digital gold and it’s extremely expensive.
In terms of cryptocurrency investment as an investor, with the trading prices of the two digital assets in perspective, Dash could be a better investment.
This is because BTCs price may be out of your reach as per your investment budget. Buying a fraction of a cryptocurrency has been trending online. As an e-learning organization, we’d suggest you refrain from buying fractions and buy wholes.
With percentage change in price as an analytical tool, let us peg the prices of DASH and BTC at $400 and $60,000 respectively.
A $2,000 investment in DASH could buy you 5 DASH. With BTC, you would get an insignificant amount of cryptocurrency. At its trading price of purchase, BTC would have to rise to $120,000 to obtain a 100% increase. This price could happen but would take huge institutional interest to be able to move the digital asset to such a milestone.
With 5 DASH at $400 per coin, in the event DASH rises to $1,000, you make huge returns. Your 5 DASH multiplied by $1,000 DASH would result in $5,000. In the process, you end up making a profit of $3,000 ($600 on each coin).
As a trader, due to the high volatility in the price of BTC, the gold cryptocurrency is better than DASH. This is because it could return huge gains within a relatively shorter time. You should note that if global economic news does not favour the potential of digital assets in the future, you could incur huge losses as well.
What Is Dash All Time High?
Dash benefited from the crypto boom in 2017. DASH reached an all-time high of $1,642.22 on 20th December 2017.