The Dash Bubble doesn't exist from a Technological Standpoint

in mining •  last year

The DASH bubble is the fear that DASH is growing too fast and will potentially collapse in spectacular fashion. DASH bubble fears started after DASH doubled its value twice in the past month, from $20 USD in February 2017 to $94 in March. To make matters worse, there is no significant news from DASH that would explain this sudden rise. For traders, especially those who specialize in the stock exchange, exponential growth like this rings many alarm bells. Added to the fact that Dash has a small market capitalization, there is a signification fear of a "Pump and Dump" scheme where major players would hype of the price of DASH only to dump it in the future. However, a small market cap is exactly the reason why DASH is not a bubble. This article will try to explain why:

DASH Market Capitalization

Lets take a look the top 3 cryptocurrency market capitalization (DASH, Ethereum and Bitcoin capitalization (USD), source coinmarketcap):

  • Bitcoin (BTC): $17 Billion USD
  • Ethereum(ETH): $4 Billion USD
  • DASH (DASH): $695 Million USD
Bitcoin stands out with a $17 Billion dollar market capitalization. That's Billion with a capital B. There is no arguing that Bitcoin is the clear winner, with 80% market dominance. What that means is that if any money leaves the Bitcoin ecosystem, it will drastically alter the value of other alternative currencies like DASH. For example, if just 5% of Bitcoin's capital transferred to DASH, it would cause a 120% rise in DASH value.

DASH is special from a Technology Standpoint

Dash is based on blockchain technology, a concept introduced by Bitcoins. However, DAS has major technological advances over Bitcoins:
  • Anonymous transactions – DASH transactions are anonymous, so it is impossible to trace the source of DASH funds. This offers significant privacy benefits for DASH users.
  • Instant confirmationMasternodes instantly confirm DASH transactions, whilst Bitcoin transactions take 10-30 minutes to confirm.
  • Low fees – DASH fees transaction fees are significantly less than Bitcoins or any other bank for that matter.
  • X11 Algorithm – DASH mining uses a differ algorithm called X11.
With these technological advancements, Dash is actually like Cash (hence the name), whilst Bitcoins is like an international Bank Transfer (TT). Bitcoin transfers are just simply too slow to be used on a daily basis. Dash on the other hand can be used for instant transfers.

Breakthrough innovations matter

When Bitcoins were first invented, it was regarded as an "interesting topic" without any real usable applications. People were skeptical that Bitcoin would ever hold value. Now now only is Bitcoin at $1100 USD per coin, it also started a revolution by creating the whole field of FinTech (Financial Technology). FinTech is constantly finding uses for Bitcoin technology and applying that to keeping documents, making contracts, running financial exchanges.

DASH is a breakthrough technology

DASH has major advances that adds to Bitcoin Technology. First and foremost it uses Proof of Stake (PoS) to make transactions happen instantaneously. Bitcoins use Proof of Work (PoS), and updates to the network only happen every 10 minutes. There will always be delays on the Bitcoin network, not matter how the system is patched, it will always be technology inferior to DASH.

Article is based off an article I wrote on

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Dash love, Master Nodes guarantee a strong reserve currency of Dash, keeping prices stable, better reserve capital percentage than all major banks.