Bear markets are the best time to invest in stocks and cryptocurrencies. If you have money to invest, you can pick up top-tier cryptocurrencies for bargain prices during a bear market. A digital currency hot on many investors’ radar is Dash, a DeFi cryptocurrency with massive potential.
We’ll highlight what Dash is, how it works, and whether it’s a savvy investment. For those willing to risk during a bear market, you may be able to 6X your money by investing in Dash if the market recovers.
What is Dash Crypto?
Founded by Evan Duffield in 2014, Dash went through several rebrandings before settling as Dash, which is short for digital cash. Dash is a DeFi protocol that enables users to buy and sell instantly anywhere in the world. You can pay your friends in Dash coins, pay bills, or buy groceries and consumer products.
The Dash team is rapidly expanding its list of businesses that accept Dash cryptocurrency. In 2021, Dash launched its retail savings app, enabling users to get discounts and buy goods from over 155,000 retailers and 125 e-commerce websites. Their goal is to be the most scalable, user-friendly payments-focused cryptocurrency.
Dash is a blockchain platform that other businesses can use to build decentralized applications that utilize the Dash token. They provide an easy-to-use toolkit and developer community to encourage Dash adoption.
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How Dash Works?
Built to improve upon the Bitcoin protocol, Dash is a hybrid blockchain platform that utilizes a two-tier network. The first tier uses a custom proof-of-work (PoW) consensus protocol to approve transactions safely on the blockchain.
The second tier in the Dash network comprises a proof-o-service (PoS) masternodes system that manages and allows new blocks to the blockchain. This boosts security and protects the network from 51% Attacks, a common attack method against blockchain networks.
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Is Dash Better than Bitcoin?
There are a few key differences between Dash and Bitcoin:
- Different blockchain networks: Bitcoin is a traditional PoW blockchain platform, and Dash is a hybrid, leveraging the best of both PoW and PoS systems.
- Transaction speeds: Dash is significantly faster at processing transactions and can validate a transaction within a few seconds compared to minutes with Bitcoin.
- Transaction fees: Dash gas fees are a few cents compared to dollars for Bitcoin.
- Mining algorithms: Dash uses its own proprietary mining algorithm that’s more efficient, requiring less energy than Bitcoin.
- Market cap: Bitcoin has a much larger market cap of around $390 billion. Currently, as of November 2022, Dash’s market cap is around $450 million.
Dash has more potential as far as technology and efficiency. But Bitcoin wins for adoption. As more people see the value of Dash’s technology, it could be better in the future.
Risks of Investing in Dash Crypto
There are some inherent risks when investing in Dash:
- Price volatility: This is true for all cryptocurrencies. But Dash’s coin price can fluctuate substantially within a day, week, or month, thus making it a high-risk, high reward. However, recent research notes that Dash is less volatile than other top-tier cryptocurrencies.
- Adoption: Dash wants to be heavily adopted as a currency, but users need price stability and utility to be more accepted by businesses and retailers.
- Market Uncertainty: Most cryptocurrency trading follows Bitcoin. If Bitcoin is having a bad week, Dash will too.
- Technology: There are several cryptocurrencies competing with Dash. Some scale better, have lower transaction fees or have faster service speed. As the crypto market matures, the strongest innovating platforms will survive.
Is Dash a Good Cryptocurrency?
Ranked in the top 100 cryptocurrencies on CoinMarketCap, Dash has tremendous potential. You can buy Dash on all major cryptocurrency exchanges, and it has a growing community of applications, retailers, and buyers on its platform. But by nature of being a cryptocurrency, Dash is a volatile and risky investment.
While all cryptocurrencies were decimated in the current bear market, Dash seems to be holding its value at around $40 a coin. It had an all-time high of $1266 back in 2018 and a more recent high of $408 in 2021. If it returns to these highs will depend on the market and Dash’s ability to grow its buying and selling community.
That said, forecasters are bullish on Dash and it’s ability to gain traction in the cryptocurrency market. They are predicting a 2025 price of $89.43 and 2030 average of $214. This would make it an interesting long-term HODL. But forecasters can be wrong. Do your own research before buying.
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Is Dash a Good Long-Term Investment?
Cryptocurrency, in general, is a volatile and higher-risk investment. Buying while the market is low could prove profitable to the likes of a 6X or 10X if Dash reached its pre-bear market price. But like everything in a bear market, it could go lower too.
You’ll need to decide if the Dash crypto coin is worth the risk. We recommend researching the cryptocurrency further before you decide to invest. And never invest anything you can’t afford to lose when buying long-term cryptocurrencies.
Dash Cryptocurrency Has Investment Potential
For investors who are looking to expand their cryptocurrency portfolio, you may want to consider Dash. It has a growing community of businesses and retailers that are adopting the Dash crypto coin as a valid currency for payment.
Unbanked publishes the latest trends, news, and shifts in the blockchain markets that may influence your investment strategy. We believe in educating investors on blockchain platforms and technology so they can invest wisely.
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