During the last year we have seen hundreds of cryptocurrencies created but most people only know about Bitcoin, Ethereum and Litecoin. Mainly because these are the only coins that you can buy on Coinbase. These 3 coins are well established and have been growing exponentially all 2017 and especially during the last weeks. But would they keep growing drastically and generating lots of income for investors? Would they be around in 2 years or is there are another coin that would reign in the future?
A simple way to analyze this is just be seeing the current technology trends. Artificial intelligence, robots, chatbots, conversational technologies like Siri and Alexa are increasing the number of Internet of Things (IoT) devices in our lives. In fact, there would be at least 28 billion IoT devices by 2020!
IoT is basically a concept of connecting any device to the internet. This includes everything from coffee makers, washing machines, headphones, lamps, and almost anything else you can think of. There are going to be so many devices that they are going to communicate with each other as people communicate with other people. And this is where IOTA comes in.
IOTA focuses on providing secure communication and payments between machines. Lets say that a self driving car needs to recharge its battery.The car will communicate with the charging station and pay by using IOTA. The transaction has no fees and its done in a really short amount of time. Unlike Bitcoin or other cryptos, transactions on IOTA are free and super fast! Awesome right?
The developers at IOTA are using a new technology called the Tangle instead of using the blockchain. This technology could either revolutionize the world or fail since they are the only ones using it right now. Most likely it will disrupt the world. This coin is supported by the IOTA foundation which coordinates and fund development in the IOTA ecosystem. Additionally, they created a data marketplace and companies like Microsoft, Samsung, Airbus, Bosch and PwC are are active contributors.
In terms of technology, use cases, support and team IOTA is a great candidate to become a really big cryptocurrency during the next years. The only thing is that it has a big market cap of 2,779,530,283 compared to bitcoin which only has 16,747,612.
So for IOTA to go from a 3 or 4 dollar coin to 100 dollars the crypto market would need to grow much much more. With all the great things coming on 2018 definitely the market will continue to expand and although I do not think IOTA would go to 100 dollars next year it would definitely make some significant increases.
How do you buy it?
Right now very few exchanges offer IOTA and you need to buy it with BTC. So how I do it and also the easiest way is to buy bitcoin on Coinbase and then transfer it to Binance. Once you have BTC on Binance you can use that to buy IOTA.
Hope you understand more about IOTA now and the HUGE potential that is has. This is a coin to hold as it is a really good technology that would become essential in the IoT world which will mature during the next years. As always you should do your own research and read as much as you can about any coin before investing.
Have fun and if you want to know about the tools I use to invest in cryptocurrencies subscribe for the next article!