An analytical guide to investing in Dash in 2021
Where will Dash price go in 2021?
What will happen to the DASH price in 2021? Crypto investors have always wondered: What drives the DASH price?
Investing in cryptocurrencies is the new normal. Experts predict that cryptocurrency is the future, so everyone is trying to get on the bandwagon. But the volatility and unpredictability of cryptocurrencies are what put off most investors. The cherry on top is the unique and unusual system through which prices are decided.
Unlike traditional investments, the market forces do not act up to achieve an equilibrium price level, optimal supply and demand. The model of cryptocurrencies could resemble the fixed-supply model. Cryptocurrencies have a predetermined supply. This factor invalidates all supply-side influences.
The three factors that affect the price of DASH are:
- Consumer perception
- Competing coins
- Favourable environment
We will explain more in-depth how these factors affect the price of DASH but first why DASH?
Why Should You Be On The Lookout For DASH?
DASH was the brainchild of founder Evan Duffield. The coin was launched on January 18, 2014. Currently, it is ranked fifteenth in the cryptocurrency market. DASH started out with its price a mere $0.213899 while launching but achieved a whopping $1,642.22 by 2017. DASH is valued at $100 today, with a total market capitalisation of $920 million.
DASH all-time price movements. Source: Coinmarketcap
DASH, a digital currency, has its basis in the same blockchain technology which is being utilised by Bitcoin. And apart from the hallmark characteristics of the blockchain technology, DASH also integrated other features that would help it stand out. DASH offers greater privacy and a higher transaction speed. That’s why DASH has been popular among investors. Moreover, the system of DASH does not need any kind of outside funding or governance. The model is sustainable as DASH can fund its system without any outside intervention.
DASH has focused on addressing issues that have posed as hurdles in cryptocurrencies being widely accepted & adopted, such as scalability, sustainability, ease and cost of transaction and security. This feature makes DASH stand apart to investors, and hopeful things are being said about its future.
What Sets DASH Apart?
The three features that give DASH it's lightning-fast transaction speed, and greater privacy are Masternodes, Privatesend and Instasend.
Cryptocurrencies are mined by users who corroborate transactions that take place. DASH, however, is mined but it also has Masternodes. Masternodes are basically users who have deposited at least a thousand DASH coins, currently valued at $100,000. The masternode network is continually growing. Masternodes are in charge of Privatesend and Instasend, the anonymous and the instant transaction feature. Masternodes form the basic structure of the coin and are the defining feature that ensures the security of the coin.
Bitcoin does not offer any privacy when it comes to transactions. All the details, including the sender, receiver, are public knowledge and can be easily found on the internet. DASH offers an alternative to this. The Privatesend feature of DASH ensures complete anonymity and transaction details are not revealed to anyone. Privatesend transactions cannot be traced back.
Since each Bitcoin can be traced back to its origin, traders can easily find out if a Bitcoin has been involved in any illegal activity. However, as DASH offers higher privacy this sets it apart by fungibility. Each DASH coin is fungible and cannot be differentiated.
One of the major criticisms that cryptocurrencies, especially Bitcoin, often face is the long transaction time. This is also considered a major roadblock in Bitcoin’s journey to become the digital currency and high-scale adoption. Where Bitcoin transactions take, on average, 10 minutes, through the Instasend option, DASH transactions are confirmed in a matter of seconds. However, there are additional charges for Instasend. The usual DASH transactions take about 2 minutes to confirm.
The unique system of DASH has a self-funding feature. Bitcoin miners get all the rewards but 10% of the reward of DASH miners goes back to the system and is invested in DASH. Hence, DASH can fund itself as well as sustain itself. The usage of the fund is decided through voting of the DASH network participants. This system ensures that the DASH network is not stagnant and is growing and adapting to developments.
Ready to dive into the DASH market?
Factors That Drive The DASH Price
The factors that drive the price of DASH are all demand-side. In the cryptocurrency market, supply-side factors do not play a role in establishing price levels as supply is already fixed.
There are a variety of demand-side factors that are detrimental to the price of DASH but some major ones are:
1. Consumer perception
Like the perils of fiat money, the value of cryptocurrencies lie in consumer perception. It is the demand that increases the value of the cryptocurrency. So, the more traders think highly of DASH, the higher will be DASH valued.
The value of any commodity increases because it is scarce. Since the supply of cryptocurrencies is predetermined, they are already scarce. The fewer DASH coins there are in the market, the more it will be valued. The total supply, the hard cap, of DASH is 18 million coins whereas, in comparison, Bitcoin’s hard cap is at 21 million coins. Hence, DASH already has the element of scarcity.
Consumer perception is also affected by news and expert opinions. The DASH foundation has been actively trying to establish partnerships with various firms, and analysts are optimistic about the future of DASH. These factors are contributing to consumer perception very positively.
2. Competing coins
DASH is currently ranked at top 15, but the 14 coins above DASH have a great impact on its value. Bitcoin, the king of cryptocurrencies, is leading the market and for a new investor, Bitcoin would be the obvious choice. On a macro level, all cryptocurrencies seem to move in sync with Bitcoin and have a relatively high correlation.
Although DASH does not have a high positive correlation with Bitcoin, Bitcoin still has an impact on its prices. Bitcoin affects the market sentiment of the whole cryptocurrency market. An increase in Bitcoin value, which we have seen recently, will give bullish tendencies to the market
Other competing coins that have a close resemblance to DASH can also give DASH a run for its money. As critics of DASH do exist, they often point to similar coins like Monero that are managing some of the things in a far better way than DASH. The rise in value of such competing coins will definitely hurt the market sentiments for DASH. Further developments down the road which can result in better, faster and cheaper coins can result in DASH bein outdated.
3. Favourable environment
As the world is moving towards digitalisation, cryptocurrencies and the likes seem to be increasingly accepted and adopted. A general notion is that one day digital currency would be the mode of payment throughout the world. The vision of the founder of DASH seems to fit right in line with the future of the world as it seems currently.
After the 2017 cryptocurrency craze, things have toned down a bit and investors are a little cautious but earlier this year Bitcoin achieved its all-time high, which makes it evident that the cryptocurrency market is approaching bullish sentiments.
Why Should You Invest In DASH?
DASH has great potential. It has gotten support from some of the highly-thought-of cryptocurrency experts. An investment of $50 in 2014 would have turned a whopping $382,826 in 2017.
DASH does not serve the purpose of being a store of value; instead, it is a functioning cryptocurrency. DASH is heavily involved in and affected by the digital payment evolution. Major financial institutions are also looking into alternatives for cash and DASH, with its features, seem to be a viable option. It may very well be on the path to leading the market in digital payments, which is one of the reasons why investing in DASH might be a good option right now.
What Are The Pros And Cons Of Investing In DASH
Pros of investing in DASH
✅ DASH has been regarded as one of the most secure cryptocurrencies. It offers better privacy and more security, especially in comparison with Bitcoin and the likes.
✅ The masternode network guarantees complete anonymity, and no transaction can ever be traced back to its origin.
✅ The coin is fungible, which means each and every coin is unique as no history can be ever traced.
✅ The transaction cost is also a fraction of that of Bitcoin.
Cons of investing in DASH
❌ The downside of the increased privacy that DASH offers is the susceptibility to illegal activities.
❌ As transactions cannot be traced back, there us a chance that DASH will be used for illegal transactions.
❌ This will not bode well once governments decide to put cryptocurrencies on a leash and put regulations in place, DASH is, undoubtedly, going to be under the microscope of the authorities.
❌ Some experts argue that DASH’s system goes against the central belief of cryptocurrencies which is decentralisation. As masternodes sit on top of the pyramid, someone controlling the majority of the masternodes would have total control of the whole system. Whereas this scenario is improbable and difficult, it is not entirely impossible.
❌ DASH had also suffered from a bug on its release. The bug made possible the mining of 2 million DASH coins in just 48 hours of its launch. Although, it has not had any bugs ever since some investors are still sceptical.
Would you consider investing in DASH?
DASH In 2019 And Before
DASH has had a particularly volatile price history, and previous trends can help us predict future ones. At the time of launch, DASH had a value of $0.213899. In mid-2016, the coin seemed to attract attention, and the price rose up to $16. The coin shook the investment world in 2017 when it achieved its all-time high of almost $1600. This led to heavy speculation about the future of the coin.
The bear market of 2018 hit hard all the cryptocurrencies, including DASH. The coin stopped to a low of $45 in the year. But in 2019 the coin began to gain momentum and crossed the $100 mark and even rose up to $120.
DASH has sustained its prices ever since and is currently priced at $100. Investors are optimistic about the prices and hope that the new year is going to be good.
What Is The Future Of DASH?
The outlook of 2021 seems to be positive. The DASH group is actively setting up partnerships with many businesses. DASH is not just easy-to-use crypto; it also offers more functionalities, and it is anything but difficult to spend.
The DASH team is continually working on improving user experience and has established a vast and safe network. The adoption of cryptocurrencies in the near future seems imminent with DASH, possibly, on the forefront.
Primexbt predicts that DASH could go up to $2,000 per coin in 2021, and the price will not stop there. As the coins are increasingly adopted, the prices could be on a sharp upward trajectory.
Technical analysis of Dash currently showing that Dash is ready for a bullish return. Source: Primexbt.
In an idealistic situation, according to Primexbt, DASH can cost as much as $8,000 by the year 2025, which is really optimistic. The solid team of DASH Labs Development with their constant developments to the network gives strong hope for DASH to once again enjoy its rank in the top 10 by market capitalisation. The continued expansions of the network will also contribute to the value of the coin.
Start Trading DASH With eToro
eToro is the best social trading platform in the world. DASH is one of the 90 cryptocurrency assets eToro provides, and you can start your investment.
eToro stands out for their easy to use platform and for their high security. eToro is a brokerage with tradition, and it is not any kind of exchange, which can be hacked unexpectedly, and you can lose your assets.
With eToro your assets are safe. You can even use the "Copy Trading" platform, where you can copy your favourite trader.
eToro – Best Broker to Buy DASH
eToro have proven themselves trustworthy within the crypto industry over many years – we recommend you try them out.
Virtual currencies are highly volatile. Your capital is at risk.
- The three factors that affect the price of DASH are consumer perception, competing coins and the favourable environment.
- DASH was the brainchild of founder Evan Duffield, and it was launched on January 18, 2014. Currently, it is ranked fifteenth in the cryptocurrency market.
- DASH is valued at $100 today, with a total market capitalisation of $920 million.
- The three features that give DASH it's lightning-fast transaction speed, and greater privacy are Masternodes, Privatesend and Instasend.
- DASH shook the investment world in 2017 when it achieved its all-time high of almost $1600.
- Primexbt predicts that DASH could go up to $2,000 per coin in 2021 and $8,000 in 2025.
Lastly, DASH is one of the market leaders of cryptocurrencies, and the network is constantly being updated and modified. What sets it apart from Bitcoin, the king of cryptocurrencies, is the vision of Founder Evan Duffield who wanted a coin with all the positives of Bitcoin as well as features that Bitcoin lacks. The ease of transactions, the speed and the security, are hallmark qualities of DASH. The close link DASH has with digital innovation seems to bode good things for its future.
However, cryptocurrencies are notoriously known for their unpredictability and DASH has a track record of very violent price actions. Even though the future does seem optimistic, DASH can take hits that will effectively land it out of the top fifteen club.