In the last days, IOTA became really popular when its price passed from $1.4 up to $5.48 dollars. Its market capitalization has also grown exponentially. At the moment of writing this article, IOTA is the fourth cryptocurrency by market cap with $12.4 billion dollars. Bitcoin, Ethereum and Bitcoin Cash are the only cryptocurrencies with a higher market share than IOTA.
This amazing increase has different reasons and not only one. But we also need also to understand what IOTA is and how it works.
IOTA – Internet of Things 2.0
The IoT (Internet of Things) industry is growing, and every single year, there are new developments. As IoT keeps expanding, there is a higher necessity for interoperability and sharing of resources
IOTA is a platform that allows companies to trade different resources with a system called ‘Tangle’. With it, there is a real decentralization, no fees, infinite scalability and micro transactions. The IoT industry will be able to expand because of this cryptocurrency that is revolutionizing the market.
One of the reasons that explain the increase in its price, is the fact that it has partnered with Microsoft a micropayment-based data marketplace that works with ledger technology.
IOTA co-founder, David Sønstebø, has commented on the matter:
“The goal is to enable a combination of a business-to-business data economy, as well as enabling researches and even hobbyists to participate. The beauty of enabling fine-granular trade access is that we really don’t know who or how it will be used, except that we know it is a completely new paradigm.”
This year we have witnessed a community division in the Bitcoin network. The main reason was the scalability problem. Bitcoin Cash forked from the original bitcoin chain and Bitcoin SegWit2x was the cancelled fork that wanted to take another path.
Bitcoin fees and transaction times have been increasing through time due to the high demand of the market. More and more transactions were processed and the blocks were becoming full really fast. This is something that IOTA does not need to worry about.
IOTA works with a technology that is different than blockchain. It keeps being decentralized and secure, but in order to process transactions, two more should be verified. This is the way that IOTA has to allow endless scalability.
As the market keeps increasing, Bitcoin will also have to increase its fees. IOTA could solve several problems to Bitcoin and other cryptocurrencies. There are endless possibilities for scalability without fees in IOTA’s network.
Now IOTA has stabilized and its price could continue increasing as new investors arrive to the cryptocurrency market.
Do you think that IOTA will settle itself in the top of the cryptocurrency market?