IOTA (MIOTA): What the Tangle Holds for the Future of MIOTA
When rumors were rife about IOTA and Microsoft in November, the price of IOTA (MIOTA) grew up to $5; for many enthusiasts, was a good sign of better things to come for the cryptocurrency. This growth was short lived and the price dropped to $3 following the digital asset crash, a slight improvement from the previous $2.
Currently, many cryptocurrency lovers and IOTA addicts are torn between buying and offloading. Whether your intention is to hold or day trade, it is important to focus on the path the coin takes in the next few months. As much as the coin is technologically endowed, you need to separate the hype and the facts.
Enter the Internet of Things Application IOTA (MIOTA)
Tech savvy users and developers have termed MIOTA of the future. The beauty of it is that it tackles the problems of scalability head-on. This seems to be critical area where other major coins have failed the user. The developers behind the IOTA ecosystem focus on the future with more people using connected smart applications.
This is a smart choice given that there has been improved internet connectivity and this will explode in a decade going forward. The figure can go as high as 50 billion. This seems possible given that there are more smartphone and computer users compared to nine years ago when Bitcoin came into being.
People are moving from the conventional methods of sending money and embracing digital platforms. This is quite practical if you are a fan of micro-transactions. IOTA aim is to tap into the potential that comes with software as a service (SaaS). The habit of consumers purchasing a single item several times is what will make the ITOA platform cut a niche in the future market.
If you are a keen online shopper, you must have noticed that with micro- transactions are on the rise and this tend to lower the cost of transactions drastically. To tap into this virgin niche of under $0.75, the developers have launched the “Tangle” to handle the anticipated souring number of transactions.
Why IOTA Tangle?
With most blockchain technology powered cryptocurrencies, the use of miners to solve cryptographic puzzles is the norm. The IOTA (MIOTA) Tangle is known to be block-less and does not employ the services of miners.
This simply means that the Tangle is not centralized. In addition there is no Proof-of-Work or Proof-of-Stake. When you make a transaction, it is used to verify other two transactions. This speeds up the network and makes it possible for many users to transact at any given time.
Tangle enables the system to be fee free. This enables users to purchase virtually anything using the micro-transaction function. It does not make sense to buy a product or service and the transaction costs more than what you purchase.
With blockchain based cryptocurrencies, transaction fee is used to reward the miners. This tends to slow down transaction speeds since miners will go for high value transactions and ignore small traders. This leads to congestion like what Bitcoin is going through at the moment.
IOTA (MIOTA) Performance
Currently, MIOTA is trading at $2.42 (at the time of writing) and in the last 24 hours has dropped 4.60%. On January 17, the coin was fell to $2.18 but managed to overcome the drop to finish the day 11% stronger to close at $2.78.
The drop being experienced by IOTA affects other currencies across the globe. The entire cryptocurrency market seems to be shrinking by approximately $80 billion to stand at around $500 billion. IOTA is currently ranked 11-th largest cryptocurrency with a market capitalization of $6.5 billion. In today’s trading IOTA prices stood at $2.40 as of 21:00 GMT after losing 5.90% value.
As much as there is no astronomical growth anticipated soon, IOTA engagement with companies process may mean monetization of its APIs through B2B and the fee burden passed on to the user. The consumer might not readily notice the fee increase from their micro-transactions but this might hurt the growth of MIOTA in the future.
Despite the IOTA developer big promises, it has had a share of glitches with its wallet. The consumer has been left wondering if MIOTA is the way to go especially when their wallet balances red zero while they hold good amount of the coin. This might have been resolved but the buck stop at the developer.
As we anticipate some changes in IOTA (MIOTA) as it positions itself in the cryptocurrency market, the Tangle technology will tell the direction the coin takes. Putting off Microsoft and other corporate entities and delivering on its technology promises might seem the coin joining the ranks of BTC and ETH soon.