When most people think about IOTA (MIOTA), the first thing that comes to mind is communication between devices. While this is exciting, it might come off as too futuristic for it give IOTA, the push it needs to grow in value in the short term. For instance, you don’t expect your fridge to start buying stuff on your behalf in the near future. We are a little bit far from that, at least from a mass market point of view. Could this be the reason why IOTA has dropped so much in the last three months? Was it overpriced, relative to its current market value? The answer is a big NO!
As a matter of fact, IOTA is one project that fits pretty well in the growing decentralized environment. To understand why, you need to look at the problems facing blockchain technology at the moment. One of the problems most blockchain projects have is that of transaction costs. Bitcoin, for example, has seen an increase in costs as its price increases. This is a problem that IOTA eliminates with its Tangle technology that allows for free transactions. This makes IOTA a great crypto for international payments in the decentralized environment.
IOTA (MIOTA) also handles the problem of speeds that faces many blockchain projects at the moment. Speed is critical if decentralization were to ever fully go mainstream, and on this front, IOTA is at the top. Together with a few blockchain projects, IOTA can handle millions of transactions per second, which makes it ripe of adoption as a global payment method.
IOTA also happens to solve one problem that blockchain technology has not fully tackled, and that’s the problem of quantum computers. Experts have postulated that blockchain based cryptos can be hacked by a quantum computer. Though these computers are yet to get refined, they are a serious threat to blockchain technology. IOTA by its very nature is designed to be quantum proof. This is a feature that makes IOTA the perfect currency in the cryptocurrency space. It’s fast, secure, and free.
So why has IOTA dropped so hard, going from highs of $5 to its current price of under $1? There are several factors to this. The first one is the perception that IOTA is meant for machine-to-machine communication, a technology that is a little bit far from going mass market. This perception has contributed significantly to IOTA’s drop, even though as we have seen above, it is not the only facet to IOTA.
The other factor that has driven IOTA (MIOTA) down is the overall drop in the crypto market. Most cryptos are down, with Bitcoin dropping from $20,000 to its current price of under $7000. This has played a role in pushing down IOTA. Once the overall market sentiment changes, IOTA’s fortunes will change too. It has all the characteristics of a crypto that can be used as currency, which is good for both its short-term and long-term value. There is a good chance that IOTA will head back to its recent highs of over $5, making its current price a great entry.