There are currently about a thousand different cryptocurrencies, which have different characteristics, prospects and are meant for various tasks. In this article we will analyze, perhaps, the most anonymous coin of high capitalization – Dash. We will explain what is good about it, tell you about its weaknesses, find out whether it is profitable to mine it, and also what forecasts of analysts exist for the next year and a half.
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- What is Dash and what features does this coin have?
- Advantages and disadvantages of Dash
- Is it worth your time to mine Dash?
- Analysts’ forecasts for 2018-2019
Dash is a digital cryptographic coin that has an increased level of anonymity. The developers of Dash created it as an alternative to Bitcoin. They took all the best features that were already present in the #1 cryptocurrency, added a few characteristics and solved some problems that Bitcoin’s algorithm could not solve. Dash, as well as all other cryptocurrencies, is decentralized. This coin has one indisputable advantage: it is not necessary to have as much computing power as for Bitcoin to mine it.
This cryptocurrency has one more distinctive characteristic – the so-called “increased decentralization”. It is not just the equality of all the participants. Any member of Dash community has the right to offer their own innovations in the development of the project.
By the way, the modern name of this coin did not appear in one go. At the very beginning of the journey, Evan Duffield, the main developer of the project, called it Darkcoin. After a while, it became clear that this was a way too gloomy name for most users and the development team decided to rename the project into XCoin, after that another rebranding was held, which already brought a more familiar name – Dash. According to unconfirmed data, the word Dash means a sharp jerk up or just a rapid growth.
In our world not everything is divided into “black” and “white” and it is not simple to determine what is an advantage or disadvantage of the Dash coin at first glancr. To start with, let’s look at the reward distribution algorithm:
- 10% goes for the further development of the project;
- 45% goes to miners;
- 45% goes to masternodes.
In order to make one masternode, you should have 1000 coins and deposit them as collateral. Where is the catch? If you look at one hand, then this distribution scheme reliably protects the system from “51% of attacks”, ensures the constant development of the project. But if you look from a different angle, then the figure of 1000 coins greatly increases the threshold for those who want to create their own masternode. As for the nodes, with a significant increase of the rate they can throw off their assets for obtaining a momentary profit, which will lead to a huge collapse of the coin rate.
It should be understood that the concept of mining profitability has a non-permanent nature. The fact is that the process of mining of any coin is subject to cycles. Let’s say that some cryptocurrency is becoming very profitable, and the equipment pays off its value in less than a month. A large number of participants are immediately engaged in the mining process. The coin algorithm sees that the processing power of the system has grown too fast. In order to prevent rapid inflation and keep emissions at the same level, the overall complexity increases. Now the equipment pays off its cost in 6/9/12 months, provided there is no drawdown. The mining does not bring a proper profit, so the lion’s share of the miners leaves the market, which again leads to a reduction in the network complexity and this makes the process cyclical.
The mathematical law of mining is as follows: “As soon as the mining of any coin becomes too profitable, it quickly ceases to be so and vice versa.“
Speaking specifically about the Dash coin, it should be noted that the mining of this cryptocurrency does not require much energy, which makes life easier for miners.
You can get Dash:
- using processors;
- using GPU video cards;
- using specialized ASIC equipment;
- using special pools for mining.
As of the time of writing, the coin rate is about $240, and the capitalization is slightly less than $2 billion. It should be noted that the market is now in a deep downstream, the current figures are less by almost 500% than the peak prices recorded in the January of 2018. A very difficult situation took over the market and guessing what will happen tomorrow is a rather difficult task. Nevertheless, according to the most pessimistic forecasts of analysts, the Dash cryptocurrency rate will reach its peak of 7000 dollars by the end of 2018.
Dash cryptocurrency was developed as an alternative to Bitcoin. It has its strengths and weaknesses. Dash focuses on exclusive anonymity. The network is characterized by full equality, which is not limited to the peer-to-peer system, all members of the community have the right to publicize their ideas about improving the network and vote for a decision. One of the features of the coin mining is the absence of large energy costs. Analysts see Dash as a perspective coin for 2018-2019.
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