Is IOTA a Good Investment?

tl;drIOTA is a cryptocurrency set up to allow data exchange between any data recording machine as part of the Internet of Things. IOTA is novel in that it doesn’t use a blockchain and instead enables a different type of system of a web of connections. IOTA has proposed a different data structure termed Tangle to store and manage numeric representations in a unique manner. It allows IOTA to overcome Bitcoin's scalability issue by removing the topographical hurdles of using a blockchain. The tokens are pre-mined like XRP, and the transactions are validated using Tangle, a Decentralised Acyclic Graph (DAG).
Is IOTA a Good Investment?
Is IOTA a Good Investment?
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Introduction

IOTA is a cryptocurrency set up to allow data exchange between any data recording machine as part of the Internet of Things. IOTA is novel in that it doesn’t use a blockchain and instead enables a different type of system of a web of connections. The new system is called Tangle and is based on a type of cryptographic verification known as Directed Acyclic Graph (DAG). In order to make a transaction, the user must validate two previous transactions on the web. This means the system is proportional in speed to the number of transactions occurring.

IOTA's network, transactions can be processed simultaneously. They aren't necessarily bound to follow a sequential order where transactions are stored in a queue. As more nodes become a part of Tangle, the network becomes more and more efficient and secure. The lack of a mining subsidy does not make the PoW “not mining”, it just makes it “extremely insecure” mining. With the current market value for access to the IOTA ledger, IOTA is able to offer extremely low-cost transactions. This is/was true of any distributed ledger that has low market value for access to the ledger.

 

How Does IOTA Work and What Is the Technology Behind It?

IOTA has proposed a different data structure termed Tangle to store and manage numeric representations in a unique manner. It allows IOTA to overcome Bitcoin's scalability issue by removing the topographical hurdles of using a blockchain. The tokens are pre-mined like XRP, and the transactions are validated using Tangle, a Decentralised Acyclic Graph (DAG).

In simpler terms, it's a network of non-sequential nodes which allows each node to be connected to several other nodes in sort of a 'tangle’. Although other blockchains are also DAG, they don't have the same parallel system. It means that on IOTA's network, transactions can be processed simultaneously. They aren't necessarily bound to follow a sequential order where transactions are stored in a queue. As more nodes become a part of Tangle, the network becomes more and more efficient and secure. The system doesn't also require full node miners as each new transaction can be validated by referencing the last two purchases. This doesn't only reduce the transaction processing time but also cuts down the number of resources required. 

In the end, an easy Proof of Work (PoW) quiz or puzzle is included to verify the transaction. This protocol of validating transactions results in no charges or fees and consumes lesser power. It also means that digital currency MIOTA can be used across a dynamic range of systems and devices without requiring too much power.

The lack of a mining subsidy does not make the PoW “not mining”, it just makes it “extremely insecure” mining. With the current market value for access to the IOTA ledger, IOTA is able to offer extremely low-cost transactions. This is/was true of any distributed ledger that has low market value for access to the ledger.

Financial Analysis

IOTA coin price is currently seeing a strong downtrend on the daily timeframe which can push the price near $0.8. MIOTA's price has observed a loss of 5% in the past 24 hours and is trading near the value of $0.98. The asset price has an ROI of more than 175732.03% which has profited the investors for a very long time. IOTA bullish momentum while going upwards can see a halt near the value of $1.2. A quick snapshot of ROI (return over investment) in different time frames till today here.

Meanwhile, the bounceback region for the asset price can be found near $0.8. IOTA/BTC pair is also in a downtrend but can soon revert to the uptrend. One can invest in IOTA according to the price action and positive signal MIOTA price has seen a downslide of more than 80% from its all-time high. The price of IOTA is currently trading below the 50 and 100 Daily Moving average, with an upcoming positive crossover. The asset price is currently taking the support of the 100MA line. If the price breaks down below 100MA then a strong downtrend can be observed in the future. One can position their funds in the IOTA as per their risk capacity and price action scenario.

A great capable marketing team and brand awareness have a direct impact on the success of any project. This is a popularity chart to give you an indication of how fast price is affected by growth in popularity here.

Projects with low liquidity and smaller market cap are generally riskier. As the projects become more popular and traded with more people, they are less volatile and considered better investments here.

MIOTA coin has a market dominance of 0.13% and is ranked 52nd in the CMC. The volume to market capitalization ratio of the IOTA hints towards a strong upside momentum for the future.

The weekly technical chart of the IOTA price suggests a strong upside momentum for upcoming weeks. On the daily chart, the asset price observed a strong downtrend on the daily chart. The price can soon see a reversal in the future.

You're saying that I should invest in IOTA Network?

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