Is Dash Still A Good Investment in Late 2021?
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 its tiny brother litecoin, but the real question is how will the future play out?
While we used to be very bullish about Dash, ultimately in the last year we’ve abandoned our vision of owning a Dash masternode due to lackluster adoption both from the general public (retail investors and spenders) and more-so institutional entities which seemingly have no interest in Dash.
Our Analysis on the fundamentals of Dash:
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 used to have an adequate community, some real-world adoption, and did the job it was designed to do (be digital cash) quite well, and I used to like it more than other cryptocurrencies for use as a ‘digital cash.’ However in the last 1-2 years the momentum for dash has faded; the posts on subreddits are down compared to 1-2 years ago while most other big cryptocurrencies subs have grown by 10-20x in the number of posts and (active) subscribers they have.
A couple years ago we outlined that dash didn’t really have a big great reputation, and that while everyone knows what bitcoin is very few people knew what Dash is — This was a MAJOR problem in terms of the long-term outlook of Dash and the potential investment returns it can bring, and unfortunately the Dash community and team has not, in our opinion, succeeded in spreading the Dash message enough to move it forward in the past few years, making it far further and further behind in the top 100 cryptocurrency rankings, and in our opinion, destroyed Dash’s future prospects.
Due to this failure we no longer think Dash has the potential to really be digital cash — Dash definitely had the technology, the capabilities, the infrastructure, the community, and the potential to become true “digital cash” a few years back if it kept it’s momentum, but it didn’t.The community faded, the development slowed, the marketing and adoption decreased — ultimately everything worsened in terms of Dash’s future prospects.
Our Tragic Outlook on The Future of Dash:
We used to prefer Dash to Bitcoin due to it’s closer-nit community, it’s hybrid POS and POW model, it’s treasury system, and it’s overall much easier to use wallets and mobile payment systems. We don’t prefer Dash to Bitcoin anymore.
Despite all of those seemingly advantages Dash and its community didn’t succeed in ‘spreading the good word’ in the last few years, the treasury system has resulted in little to no real adoption change, and its hybrid POS & POW combination failed to manifest in the ways that were intended and resulted in lots of centralization and in our opinion corruption and poor capital allocation of treasury funds.
Ultimately it appears the very things that could have brought Dash’s success have more or less developed into elements that will likely keep it from becoming mass-adopted or particularly loved by either the general public or institutions — this is especially true with the advent of more and more scaling solutions and side-chains that will allow payments in larger cryptocurrencies with lower fees, not to mention tons of payment systems like uTrust which allow easy payments with them.
Sadly the future of Dash appears to be slowly fading away down the list of top cryptocurrencies until it is left as nothing more than a distant memory for most people, a novelty — with that being said there’s always a chance some ridiculous dogecoin-like event could occur to propel it up again, although obviously that’s unlikely.
Do We Currently Invest in Dash?
While we used to invest in Dash, and thought it had a solid 10% or so chance to become something great, that didn’t end up occurring so far and due to fundamental developments in other coins and the adoption they’ve received we’ve chosen to liquidate all our Dash holdings and distribute it to other coins in our portfolio — primarily bitcoin and monero in this case.
To clarify we used to have around 15% of our cryptocurrency portfolio in Dash, but have since reduced that allocation to 0% of our portfolio, with no plans to add again. Ultimately you may not agree with our assessment of Dash, and that’s fine, but as someone who’s been involved in the Dash community and Cryptocurrency in general for years, it’s my humble opinion that it’s time to throw in the towel for this one.