Therefore I want to introduce you to IOTA! I’ll explain what IOTA is and list 10 reasons why IOTA is a good investment!
What is IOTA?
IOTA is an innovative solution for IoT (Internet of Things) as it is one of the first cryptocurrencies without blockchain. Instead it is based on the so called Tangle.
IoT: Connecting everyday objects via the Internet to enable them to send and receive data.
To explain the Tangle, let’s quickly summarize how the traditional blockchain works:
- Multiple transactions are bundled into blocks.
- Each block is then verified by miners.
- Each miner receives a unit of cryptocurrency for their verification.
More information on how it works, please read my blog post about cryptocurrencies.
In order to conduct transactions in the Tangle, 2 parent transactions in the network have to be verified first.
Because there always have to be 2 transactions verified first, it can be argued that the transactions fees are not zero. Yet, the transaction fees are basically not existing as the verification process can be done very quickly without much computing power.
10 reasons why IOTA is a good investment!
Obviously nobody knows if it will be a great investment in the end, only time will tell – but don’t you wish you would have invested more in Bitcoin a few years ago? Me too!
So let me list 10 pro arguments for IOTA:
1. Innovative Tangle technology and no blockchain
As mentioned in the introduciton,while other cryptocurrencies make experiments and adjustments to the blockchain, IOTA is using a new technology: The Tangle.
2. Scalability: More activity; faster network
There is no fixed limit on the amount of transactions that can be confirmed in the network (per second). While other blockchain based cryptocurrencies have a problem with scaling, the IOTA network is profiting from more activity. The more activity, the faster the network!
3. No transaction fees!
Just no fees for transactions!
4. No mining and therefore more decentralized
As blockchain cryptocurrencies, with Bitcoin leading the way, have problems with mining centralization, there is no mining in IOTA. As every participant in the network verifies parent transactions while sending transactions, centralization is completely avoided.
5. Market cap start in top 10 – now available at a lower price
While writing this, IOTA is on rank 8 of current market cap. It dropped from 5th place and also the price: While the price was around 0,00022 BTC/IOTA in the beginning, it is now at 0,00016. So rather enter the market now while the price is cheap.
6. Co-founder of trusted IoT alliance consortium
The whole topic of IoT is the future! Connecting everyday objects via Internet to allow them to send and receive data is something that is more than likely to happen – and IOTA is specializing on this, hence co-founding the trusted IoT alliance consortium.
7. Cooperations with big companies
Even before they hit the exchange market on Bitfinex last week, they were able to pull off cooperations with huge companies like Microsoft, Bosch, Cisco, Innogy and Ubuntu.
8. 2 million dollar ecosystem fund
In May – still before hitting the exchange market – they announced a 2 million dollar ecosystem fund for new projects and developers. Expect more announcements in the upcoming weeks and months!
9. Growing Community
The community is consistently growing. If you check their slack channel, you can see that they already surpassed 8,000 members and counting.
10. Veteran team
Last but definitely not least, the team of IOTA. The core team consists of blockchain veterans. There is a reason why they were able to pull all that off. If you research the team members, you can learn that those guys are working with blockchains for years and seem to be ahead of everyone else.
My investment / status
My investment: 3.7 GI (roughly 1,500 $ with current exchange rates)
I bought some of them at 0,00017 BTC/IOTA and some of them at 0,00015 BTC/IOTA. (The current price is 0,0001625. BTC/IOTA)
This is definitely a long-term investment and I do not expect any ridiculous jumps soon that would increase the value ten times or more.
So if you find this investment interesting, you can go to Bitfinex and invest with Max!