Dash and cryptocurrencies provide solutions to fiat currencies that continue to devalue around the world; the UK pound being one example has lost around 99.5% of its value since the 1700s, the US Dollar has lost over 96% percent of its value over the past century, and other less successful currencies are even worse.
This devaluation draws attention to the fact that fiat currencies are not able to adapt to changing scenarios and when they do, it is usually adapting against the best interests of currency holders. The most extreme examples are in countries with hyperinflation like Venezuela, Weimar Germany, and Argentina, but inflation and devaluation can still be seen in first world nations. Even worse, attempts to hide and prevent inflation can cause devaluation to show up in other areas. This was the case with the Euro crisis and Greece, Italy, and Spain since each country was using a common currency and monetary policy, but were free to pursue independent fiscal policy. So when these Southern European countries became more in debt than their Northern neighbors, the Euro currency could only devalue so much and thus the devaluation appeared in Southern Europe through a slower economy, higher borrowing rates, and higher unemployment.
Many also claim that fiat currencies are safer from manipulation than cryptocurrencies because it has the backing of the government, but this is not always the case. The most famous example is when George Soros “broke the Bank of England” by shorting the currency enough to force the English government to exit the European Exchange Rate Mechanism. The governmental policies caused the currency to differ from its true market rate, which was leveraged by private investors and cause rapid changes in purchasing power for average consumers.
These events are examples of how fiat currencies are constantly working against the interests of its consumers and are either manipulated by governmental officials or large private investors. The advent of cryptocurrencies provide consumers with another choice.
Cryptocurrencies offer both a solution to and a replication of fiat currencies
Cryptocurrencies were originally founded with the goal of being a decentralized, digital, and peer-to-peer currency that had a fix supply independent from any governmental manipulation and statistically implausible to control. That was the goal of Bitcoin, however, since then there have been many other cryptocurrencies that have emerged that share this view and others that do not share this view. The most common difference is coins that have a fixed supply and those that do not, but each must still be evaluated on their intended use. Dash, Bitcoin, and Bitcoin Cash are some examples of cryptocurrencies that have a limited supply of coins that will ever be mined, which gives consumers confidence that the currency will not be debased under current code protocols. Then there are coins like Ethereum that do not have a fixed total supply like Dash, Bitcoin, or Bitcoin Cash, but are striving to be a platform more than a currency so limited supply is not as applicable. Different cryptocurrencies are attempting to satisfy different consumer demands by providing different services and thus have different structures.
However, despite consumers having choice freedom to have sound money, there is still a demand for unsound money. This is seen by the creation of pseudo-banking-fiat currencies like ripple, pseudo-government-fiat currencies like the Petro, and so-called ‘stablecoins’ like Tether. All have received heavy skepticism within the cryptocurrency community for their questionable trustworthiness. They do not have a fixed limited supply, have high levels of wealth concentration, and seem to have the ability to easily change their protocols or issue new supply. A possible explanation for their popularity is a lack of understanding of monetary theory and the difference between sound and unsound money, as this is what is commonly seen in everyday politics.
Dash educates consumers and demonstrates advantages of sound money
With the plethora of cryptocurrencies available, Dash makes itself stand out from the crowd by educating consumers and solving real world problems to show the advantages of sound money. Dash has displayed its most valuable services in Venezuela, where consumers quickly accepted Dash as a solution to their hyperinflation problems. Dash is so popular that there are already over 1500 merchants accepting Dash, which is nearly half of the entire global merchant adoption. Dash has demonstrated its advantages so well that neighboring countries that are not suffering from hyperinflation are already seeing growing adoption.
Dash has been able to accomplish this rapid adoption because its unique treasury system allows professionally paid community outreach specialists to educate consumers about Dash and how its unique features can benefit their lives through sound money. Consumers, especially those living in countries suffering from hyperinflation or economic malaise, do not always have the time to properly research the large cryptocurrency space to see what solutions are out there and which are best for them. Since Dash is able to make sound money easily accessible and understandable for consumers, Dash lowers the switching costs from unsound fiat currencies and makes Dash adoption easier.