I recognize that you have a giant Dash banner staring you in the face and the title of this piece is pretty biased, but let's not be fanboys here, let's be realistic. Anyone reading this is thinking the same thing, "Dash may overtake Bitcoin", are you kidding me? Dash $5 billion market cap. Bitcoin $160 billion market cap. 32X larger and that doesn't even speak to Bitcoin's viral market exposure or the significantly larger amount of money trading hands in the Bitcoin network on a daily basis.
Despite this, however, I believe that there are strong fundamental reasons to suggest that Dash has the best opportunity of not only overtaking Bitcoin in the future, but becoming the leading force in the cryptocurrency space for payments in general. This becomes apparent when comparing the two networks side by side, and considering which is best suited to serve the massive market opportunity that exists.
There are 6 primary factors which play the largest role in supporting this opinion.
1) Resources
Bitcoin -
17-20 part time employees
700k in funding
Dash -
50+ full time developers
Over 50 million per year in funding
Taking a look at the estimated resources for each currency, you may think that an error has been made and I accidentally swapped the numbers. In fact, Dash has a treasury system for funding built into their network where 10% of all mined coins are used to finance the development and support of the network. This translates to professional developers, a marketing department, human resources, and all the other things that allow an organization to run and grow effectively.
Bitcoin on the other hand runs on donations which amount to roughly 700k per year. As a result they have around 17-20 developers scattered on different projects and only working part time. They are unable to have the wholistic approach to development required to scale and grow the network effectively.
If this divide is not already big enough, consider if Dash’s market cap was a quarter of Bitcoin’s today. At that price, the budget would be over $500 million a year. You could do a lot with $500 million invested into product and ecosystem growth. This funding design creates a positive loop whereby it appreciates because it is better funded and marketed, and then that funding leads to further development and funding, which again encourages an increase in price.
(I know that Bitcoin’s funding numbers are in this range but haven't been able to track down the appropriate document just yet for citation. I will add it in when I find it, or if you happen to have it, post in the comments and I'll add it in.)
2) Features
Governance-
Bitcoin is unable to reach consensus on development and scaling which is why today we have 3 bitcoins, each of which has eaten away at the former’s network effects and developments.
Dash’s masternode tier is used to vote on proposals to scale and grow the network so these decisions can be made in a unified and timely fashion without all the bloodshed. As an example, the decision to scale to larger blocks, which has resulted in 3 years of debates and two hard forks in Bitcoin, was decided upon in under 48 hours and has already been implemented as they roll through to further developments that benefit the users and overall network.
Instant Transactions-
Bitcoin transactions can take hours to complete.
With Dash’s Instant Send feature, a user can transact in under 2 seconds making it perfect for real world use cases.
Private Transactions-
Similar to the way cash is mixed on a poker table, a user can use Dash’s private send feature to create privacy through uncertainty rather than obscurity.
3) Usability and Accessibility
The classic situation that is often posed around the usability of a cryptocurrency is whether or not you can use it to buy a cup of coffee. Using Bitcoin, the transaction would take you hours and the fee would cost far more than the coffee. With Dash though, the transaction can be completed faster than a credit card and for half a penny making Dash the first currency to pass the usability test.
Through the rollout of the “Evolution” update in February, Dash will have a platform which will allow users to transact with the look and feel of a bank account or PayPal, no more addresses but instead usernames written into the blockchain. You will be able to add friends, have joint accounts, have subscription payments, and so many more features currently not available in this space. You will be able to access and manage your account across all of your devices and have it synced at all times for a seamless user experience.
This should dramatically expand the current market of potential users as it removes the barriers to entry for the average person who would like to move money to and transact in cryptocurrency, but don't know how.
4) Real World Use Cases
In the US, where there is so much hype and investment into cryptocurrency, the developments and use cases don’t have such a huge impact on our day to day lives in the short term. In other countries, however, crypto could have an immediate and meaningful impact.
In Venezuela or Zimbabwe, the currency is being inflated at such insane rates that it creates significant inefficiencies and destroys monetary value. Dash could be perfect to combat these issues and protect citizens.
In underdeveloped areas of Africa, many people do not have bank accounts or a formal means for transaction. Dash solves this issue by giving people both with ease, allowing the market to run more efficiently.
In the US, because marijuana is illegal on a federal level, legal dispensaries or other legal distribution methods are not allowed to use the banking system and must instead transact entirely in cash. The protection, transport, and storage of this capital is very expensive and is estimated to cost companies 15% to 20% of sales to manage. Using Dash, these companies could practically eliminate these expenses, increase security, and move money more efficiently. Dash has partnered with a company called Alt Thirty Six which will be leveraging their relationships with distributors to make Dash accepted at thousands of locations and address this issue over the next year.
These are just a few use cases that Dash is uniquely positioned to tackle which could provide significant real world value within the network.
5) Hedge against the end of the world scenario that may never happen, but might, but hopefully won’t
A lot of people enter Bitcoin for the same reason that they enter gold, they see it as a hedge against government manipulation, wars, corruption, and an end of the world scenario. Unfortunately for gold, it has no utility. If you want to use it you must continuously transfer it back into fiat, as you would with Bitcoin, in order to transact. This can be expensive and inconvenient. With Dash you get the best of both worlds. You get the decentralized hedge against the end of the world scenario, but you also get the usability of fiat so that it stands on its own as a means of payment. Even Bitcoin holders would likely look to transfer into Dash to transact in this scenario as it would be most logical.
I’m not a conspiracy theorist, nor am I expecting the collapse of the global monetary system any time soon. But with North Korea firing missiles, the EU breaking apart, US debt and potential jump in inflation, and all the craziness with terrorism, it doesn’t seem unreasonable to feel there is some risk present that cryptocurrency can hedge against. If that happens to be your logic surrounding cryptocurrency as a store of value, Dash has many advantages that make it a superior hedge compared to both Gold and Bitcoin (namely, that you will likely be able to use it).
6) Past Paradigm Shifting Technologies Teach Us a Lesson
Boeing didn't make the first jet engine, nor Google the first search engine. Blackberry went from unstoppable to an afterthought in just a few years. The point is that technology moves quickly and as Dash develops rapidly, Bitcoin and other alt-coins will need to act fast or fall in line with the other pioneers that couldn't keep up. It seems crazy to think today, but the second mover advantage has countless stories of success, especially in the technology space. Dash already has so many advantages that continued development could shift it into the spotlight and market leading role over the coming year.
Disclaimer: I am not a financial adviser, and this is not financial advice. These are merely my observations on the market as I see it today.
I am long Dash, but have the goal of being objective about the factors at play. I encourage counterarguments and appreciate any feedback. Only time will tell how these things shake out. I believe, however, that there is a strong and logical case for Dash’s success in the long run. Thanks for reading!