The Long-Term Bullish Case for Dash (DASH)

Dash

Dash (DASH/USD) was founded in 2014 with a mission to provide greater economic freedom to the holders of the cryptocurrency. It’s aiming to achieve this goal by creating a secure and reliable decentralized platform to both consumers and merchants. The founding members of the crypto token see it as being used by both people and businesses in everyday transactions.

This sounds like a lofty expectation considering that there are other cryptocurrencies in the space providing the same service and fighting for market share. Litecoin, Bitcoin Cash, and Bitcoin SV easily come to mind.

Dash on CoinMarketCap
Dash falls behind other cryptocurrencies that offer instant payment solutions | Source: CoinMarketCap

A quick look at the ranking of the cryptocurrencies reveal that Dash is far behind its competitors. Nevertheless, the number 15 cryptocurrency is a solid long-term pick because throughout its five-year existence, it has established a unique identity. The cryptocurrency wisely picked its target market and its team is aggressively pushing the payment solution to its selected audience.

The Problem Dash is Solving

It is no secret that the economies of several Latin American countries are in disarray. For instance, Venezuela’s hyperinflation hit 80,000% in 2018. Brazil’s economy is in shambles with no recovery in sight. Argentina is headed towards a financial crisis as its peso lost over 65% of its value against the US Dollar since 2018.

On the other hand, other countries such as Peru and Colombia fail to provide the financial services required by a significant portion of their adult population. 54% of Colombian adults don’t have a bank account while 30 percent of Peruvian adults are considered unbanked.

These countries need a reliable currency that acts as a payment solution and a safe store of value at the same time. Enter Dash.

Dash Hyperfocusing in Latin America

This crypto entered the Venezuelan market in 2016. It was preferred by the country’s citizens over bitcoin because of its low transaction fees and quick confirmation system.

Seeing an enormous opportunity, the Dash Core Group aggressively marketed the cryptocurrency to raise public awareness. The marketing campaign involved educational conferences, radio advertising, billboard ads, and even internet ads.

Dash billboard
Sample of a Dash billboard in Venezuela | Source: Medium

As a result of these promotional campaigns, there are over 2,500 merchants accepting Dash in the country. Thousands of Venezuelans have responded by buying Dash-ready mobile phones. According to Brian Fonseca, a professor at Florida International University

Venezuelans are turning into cryptocurrencies as a way around inflation and unstable currency.

This recipe of success appears to be replicated in Colombia. As of December 2018, there are 333 active Dash merchants in the country. On top of that, the cryptocurrency has seen a 25 percent spike in active wallets in Colombia. Coordinator of Dash Colombia George Donnelly said that merchants are choosing to accept Dash because

competition is stiff and they are looking for any edge they have get.

In Brazil, the crypto token is starting to make its presence felt. Brazil-based cryptocurrency exchange CoinBene integrated Dash into their platform. CoinBene referred to Dash as a

coin that’s revolutionizing a whole country.

In Argentina, the Dash team has rolled out a proposal to make Rio Tercero the first Dash friendly pilot city.

All in all, Dash has found a niche in serving the unbanked and those suffering from the effects of hyperinflation in Latin America. The team is exploiting this opportunity by investing in marketing campaigns to increase the number of users and merchant adoption rates.

Hash Rate Has Significantly Increased

With these developments, the hash rate of the coin has recently exploded. On July 16, 2019, the Dash network’s hashrate has registered a fresh all-time high while outperforming other cryptocurrencies delivering payment solutions.

The total hashpower climbed as high as 4.097 petahashes. This new record significantly outpaced the April 2019 record of 3.2385 petahashes. Also, the new all-time high reflects a growth of 170% in comparison to the hashrate more than a year ago of 1.5163 petashashes.

Dash Hash Rate
The cryptocurrency’s hashrate has been on fire recently | Source: Bitinfocharts

During the span of one year, Dash has outshone Litecoin, Bitcoin Cash, and Bitcoin SV in this regard. Litecoin’s hashrate grew by 63.4% which is not even half of Dash’s 170% increase. On the other hand, Bitcoin Cash’s hashrate plummeted by 60.3% due to the Bitcoin SV split while Bitcoin SV’s hashrate dropped by 19.77% over the same time period.
These encouraging figures tell us that more miners are securing the Dash network. They are investing equipment, energy, and other resources because they believe that mining Dash will be profitable in the long-run. It is very likely that they’re seeing the team’s marketing advances in Latin America and they’re betting on widespread adoption in that region.

Bottom Line

Dash’s hyperfocus in Latin America to serve the unbanked and the victims of hyperinflation and economic woes appears to be a winning formula for the cryptocurrency. Miners are seeing the team’s efforts and are piling in to secure the network.

Dash does not need to conquer the world to offer value. It just needs to cater to a frustrated market in order to grow over the years. This is our long-term bullish case for Dash.

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Kiril is a CFA Charterholder and financial professional with 5+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and funds, as he does his own crypto research and is a Product Manager at Mitre Media. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.