Cryptocurrency is a digital payment maintained by a network of computers that uses cryptography to authenticate transactions. Depending on how investors expect to make money and how they are structured, some cryptocurrencies may count as securities. If traders of these currencies prop up the price and go online to spread gossips, that might count as fraud. It can be hard to determine if a bubble exists. The only way to ensure that they avoid a burst is mass adoption.
The first digital currency was Bitcoin mined by millions of people in different locations around the world. It was Satoshi Nakamoto, Bitcoin’s pseudonymous creator, who built its decentralized system that anyone could participate in, but no one could own. Although it was open to all, ironically, Bitcoin transactions were supposed to be anonymous. When Bitcoin came into being in 2009, the promise was to be the universal electronic currency that passed around the world in minutes. However, Bitcoin has qualities that make it not only a coin but also a store of value and a network of payments.
Store of value
The exponential jump in the rate of Bitcoin has stoked interest from big banks and even Wall Street. For example, in 2010, using the forum bitcointalk.org, a developer bought two pizzas by paying Bitcoins for the purchase. Fast-forward a few years, and the value of that Bitcoins shot up to 425 million dollars. They are now trading for more than $2,600/- but hardly anything to spend it on.
Network of payments
The software stores a continuously updated ledger that records all Bitcoin transactions. The code sets the scarcity of Bitcoin, and mining introduces new Bitcoins at regular intervals. This form of earning Bitcoins consists of solving the math problems necessary to confirm transactions. Successful solving of those problems using mathematical calculations triggers the creation of more currency.
Limitations of Bitcoins
A civil war is over the future of Bitcoin ever since its launch, and it is already showing strain. Bitcoin’s share of the market cap of all cryptocurrencies fell from 85% to 41%. Its price has soared and not dropped, but many rivals have risen even faster. Moreover, the Bitcoin network can only process seven transactions a second due to code limitations. This quantity is trifling considering that the system aspires to serve the masses. As the load increases, it takes time to confirm transactions, and customers have been at odds. The bickering threatens to condemn Bitcoin to obsolescence or divide the currency into two versions. All in all, although Bitcoin allows the transfer of value, it is slower and more limited in its capacity than some of its latest rivals.
BIGGEST CRYPTOCURRENCY COMPETITOR
One of the biggest among the competitors of Bitcoin is Darkcoin, a portmanteau of digital cash. Part of the stellar success of Dash is due to Bitcoin’s flaws and limitations. This cryptocurrency emerged following Bitcoin’s rise in price in January 2014. Dash is one of the most popular digital currencies because it promised untraceable transactions. Although it saw plenty of dumping, its creator continued to add new features and refine the software. In 2015 it was rebranded as Dash so that it would not be mistaken for a single-feature coin. Gradually Dash gained legitimacy, and its currency’s total value has grown every year.
Advantages of Dash
A new payment method has to be easier to use, more secure and faster than others to attract customers. Bitcoin and the other digital currencies in the market fail on all these three metrics. Dash has functions and features to address such concerns and weaknesses that most others do not have. Also, Dash offers its users a quick send feature that is as easy as using a credit card. People who hold 1,000 coins and above are required to submit all future projects for a vote. The benefit of such a system is that it is a decentralized network that allows making decisions rapidly, avoiding conflicts such as that of Bitcoin, which has no way to compel anybody to adopt a new version.
The next version of Dash will include features that protect against fraud or theft such as moderated transactions. This function would allow funds to be released only upon the receipt of products, and vault accounts, which can stop an impending withdrawal of funds within 24 hours. The goal is to have a medium of exchange that can facilitate everyday commerce. The one of its kind governance system of Dash is its clearest innovation, one that is impossible to replicate.