Is Dash a Good Investment? (2020 Outlook)
Dash is a relatively established cryptocurrency, much like bitcoin, but with much lower transaction fees and enhanced privacy features. It has huge potential, much like bitcoin, or it’s tiny brother litecoin, but the real question is how will the future play out?
Will Dash be a good investment in the long-term?
The Fundamentals: Could Dash Last?
Cryptocurrencies come, rise, and die all the time — one of the biggest things to consider when investing in them is if they’ll even last. Do they have a community? Do they have a fundamental value or use to them? How effective are they at doing what they are designed to do?
In our view Dash has an adequate community, some real-world adoption, and does the job it was designed to do (be digital cash) exceptionally well. Personally I like Dash more than any other cryptocurrency that’s meant to be used as a currency, and believe it’s the best positioned to actually become “digital cash,” well with one exception.
Dash doesn’t really have a big great reputation. Everyone knows what bitcoin is, but almost nobody knows what Dash is. This is a MAJOR problem in terms of the long-term outlook of Dash and the potential investment returns it can bring. It’s a massive risk, because lets be real — if cryptocurrency takes off it’ll be because of a fiat — particularly dollar/euro — collapse.
If this occurs, Dash won’t be what people go to. It’ll be gold/silver/any-hard assets, and potentially cryptocurrency. That’ll surely benefit Dash, but realistically what most people will buy if they buy cryptocurrency will be Bitcoin, as this is what they know of. Unfortunately there’s no real modeling that we can do to gauge the potential of Dash gaining traction in such a scenario, however if it did the upside would be unbelievable.
Regardless, Dash definitely has the technology, the capabilities, the infrastructure, the community, and the potential to become true “digital cash.”
Why Do We Prefer Dash to Bitcoin?
We’ve held strongly our point of view that Bitcoin is trash, which is a very controversial viewpoint, since 2016-2017. Despite this we hold the majority of our crypto-holdings in bitcoin, as despite our beliefs we acknowledge that more than likely bitcoin would receive the majority of capital inflows to crypto until real large-scale adoption occurs of another cryptocurrency.
We prefer Dash to Bitcoin for the long-term not only because of the potential higher upside, but more-so because it’s user-friendliness. Dash wallets are much easier to use and can essentially be adopted very quickly by the general populace, particularly those used to mobile payments. They also have minimal privacy features that are adequate for general societal and business use, while Bitcoin lacks any at all which we believe would be extremely problematic in the medium-long term, particularly in terms of real-world adoption.
Dash also has an active and funded marketing team that can encourage the adoption of dash in the real-world should the real-need for a fiat-alternative arise. We see this as one of the key reasons Dash would succeed over Litecoin and other low-transaction fee more use-friendly coins.
Our Outlook: Do We Invest in Dash?
Absolutely — However it’s not something we dump all our money into — or even a significant amount. We don’t even put the majority of our cryptocurrency-allocated capital into Dash, despite believing it’s the best Cryptocurrency currently available. Currently we aim to hold 1% of our networth in Dash, which may not sound like much, and it isn’t.
This is because we try to take a more conservative and fundamental approach to investing, focusing primarily on probabilities. In our view there’s a <20% chance Dash becomes something great in the future, but if it does the returns will be unbelievably good.
In our view Dash isn’t an investment, but rather a hedge & a speculation, and thus despite the potential returns it isn’t something we expect to make us a killing. It’s something we hold for the “worst-case” collapse scenario to ensure we don’t lose our shirts. $80 invested in Dash could realistically have $200,000 real purchasing power in such a meltdown scenario, so a few hundred dollars tossed at it is more than just a hedge, but an unbelievably good speculatory gain.
Unless we were short-term trading Dash, or buying enough to get a masternode, we’d keep dash at 12% – 18% of our crypto portfolio, simply because the probabilities and sentiment data we’ve accumulated don’t suggest a better risk-adjusted return compared to Bitcoin or Ethereum at this stage, however this outlook can quickly change due to the fundamentals of Dash depending on the marketing efforts of the Dash Foundation in a crisis-scenario.