- Ryan Taylor, CEO of the Dash Core team, says that the solution to market volatility is Dash’s instant transaction confirmation system.
- Taylor believes that Dash’s functionalities can solve the problem, but more communication is needed with exchanges that do not supportthe instant confirmation function.
Volatility is a problem that mainly affects Dash
The statements were made in an episode of the Abra Money 3.0 podcast. Taylor was discussing with Abra CEO Bill Barhydt how volatility remains one of the most important market problems. The CEO of Dash’s Core team also said that this problem is much more serious for smaller cryptocurrencies than Bitcoin, in terms of market capitalization.
In this regard, according to Taylor, Dash is a cryptocurrency vulnerable to volatility. Taylor said:
The volatility issue is real. It’s even more real for a smaller cryptocurrency like Dash, which has about 25% higher volatility than Bitcoin does.
However, Taylor spoke of a possible solution. When referring to Dash’s advantages over other cryptocurrencies, Taylor stated that the most determining factor when talking about volatility is time. For this reason, he said that by reducing the confirmation time in transactions, the Dash user would be protected against volatility:
(About Dash Users) it can allow them to only take cryptocurrency fluctuation risk for a period of a couple of minutes.
During this year, Dash implemented an upgdate to the InstantSend and ChainLocks functionality. These functions allow its users to complete transactions and permanently close blocks in seconds.
In spite of the possible solution proposed by Taylor, he also said that it is necessary that the cryptocurrencies exchanges accept Dash’s functionalities. For security reasons, most exchanges do not support these features. Taylor believes it is necessary to “educate and answer the questions of the exchanges”.
Dash builds alliances and emerges as a competitor of Ripple
Recently, CNF reported on the new alliance that Dash made with Cubobit. The alliance will create the RemeZaZa remittance exchange platform for Mexico. The platform will use Dash’s instant confirmation functionality, that could make Dash a competitor of Ripple‘s On Demand Liquidity.
Fast payment solutions are undoubtedly one of the most attractive aspects of these cryptocurrencies. In addition, they could contribute to greater global adoption. For now, cryptocurrencies like Bitcoin are used primarily as a store of value.
On this point, the CEO of the Core team said that Bitcoin is an ineffective store of value, due to the effect of volatility. It remains to be seen if a greater use, by the exchanges, of Dash’s functionalities would actually diminish the problem of volatility. At least, among the users who adopt this cryptocurrency.
The price of Dash is at the time of writing at $ 55.31 and follows the downward trend of the market, registering a loss of 2.91% in the last 24 hours.