Investing in cryptocurrencies reflects the investor’s opinion that in the future the cryptocurrency will be a functional means of payment. It’s that simple. How can the future of cryptocurrencies be predicted? Let’s have a look at it.
The main principle of IOTA – may it work?
Firstly, regarding the picture above, maybe that’s an extreme exaggeration, but maybe not really. After reading this article you’ll know. IOTA is cryptocurrency for IOT (Internet of Things). According to Wikipedia “The Internet of things is the network of physical devices, vehicles, home appliances, and other items embedded with electronics, software, sensors, actuators, and network connectivity which enables these objects to connect and exchange data. Each thing is uniquely identifiable through its embedded computing system but is able to inter-operate within the existing Internet infrastructure.” What is the role of IOTA? Imagine that there are millions of self-driving cars and you own one of them. The car can connect to others, buy real-time data of traffic (in exchange for IOTAs) and decide which route would be the fastest way to your destination. You might say: “All right, that sounds good but my self-driving car can buy data from Google or sb. else. Yes, but this is just one example. There will be devices from which Google will not be able to collect data like devices in smart homes. In future, we will have billions of smart devices and your device will just search for other devices and buy necessary data. So the answer is yes, IOTA can work and in my opinion, it will.
The best platform for cryptotrading is Binance!
And there are no transaction fees because all IOTAs are premined and transactions are verified by other transactions, not by miners. If you send IOTAs you have to, at first, confirm another two transactions and then your transaction could be confirmed. So your only transaction fee is a little energy for confirming another two (random) transactions. A potential problem is 51% attack, or in the IOTA’s case 34% attack because it runs on ternary code. The problem is solved by adding Coordinator which generates every minute Milestone (for more please see https://www.reddit.com/r/Iota/comments/7c3qu8/coordinator_explained).
The point is that unlike the bitcoin IOTA could be really decentralized cryptocurrency in future after removing the Coordinator which is run by IOTA foundation. Now you might be thinking why bitcoin is centralized. All right, bitcoin isn’t fully centralized but these days several mining pools have more than 50% hashing power so if they want to increase transaction fees in order to temporarily decrease price, they can. Yes, of course, it’s better than one central authority but still not good.
Every time you value an investment, you shouldn’t forget about risks. Right now cryptocurrencies keep rising so one can easily omit threats. In IOTA’s case it could be inability to remove Coordinator so IOTA will be centralized forever. IOTA’s programmers said they’ll remove coordinator but nobody knows when. Another threat is in ternary code – cryptocurrency based on ternary code is something new (it’s both plus and minus) and I believe that we haven’t discovered all the drawbacks about it. Interesting thing about IOTA is unprofessional behavior of programmers. Just try to read some discussions on Reddit etc. and you’ll see childish reactions from IOTA’s team every time someone points out on unimportant drawback about IOTA. And last one I’ll mention is “fake news” as it’s the most recent problem. If you try to do some Google research about IOTA you’ll find news about “partnership” with Microsoft or Samsung. Dominik Schiener, co-founder of IOTA, made it clear here: https://blog.iota.org/iotas-data-marketplace-setting-the-record-straight-576fbf0b4513. So whenever you read something about IOTA or other cryptocurrencies you should verify your information.
After reading about threats you might think it’s rather “shitcoin” than great cryptocurrency depicted as a tasty apple in contrast to other cryptocurrencies showed as a destroyed apple at the beginning of the article. But you should realize that these threats are very insignificant compared to IOTA’s huge potential: real-time data are more and more important and IOTA is the solution of instant buying of data needed by smart devices.
I recommend IOTA at least as mid-term or better as the long-term investment. Internet of Thing will not spread across the world in one or two weeks, neither IOTA will (except bubbles caused by the fake news).
Binance is well-known for its very low trading fees and hundreds of trading pairs. You can buy some IOTA on Binance, just click on the banner below, the registration will take seconds and you’re ready to make big money like me!
Disclaimer: This is my opinion and everyone is fully responsible for their own investment decisions.