Is IOTA Coin The Next Bitcoin?

Is IOTA Coin The Next Bitcoin?

The IOTA Coin could become one of the best performing cryptocurrencies in the future, and that’s because it solves one of the most crucial issues with Bitcoin; transaction fees. Imagine this; when you send a buddy of yours $5 worth of Bitcoin, you will also need to pay some transaction fees associated with the use of the network that your transaction will take. So, usually, paying small sums with Bitcoin becomes pretty much redundant.

Unfortunately, we might see this becoming one of the greatest issues of Bitcoin before the world start to adopt this crypto currency. For example, when you’re at the grocery store buying a couple of things, you might expect to spend less than $10. Let’s say that at this time, Bitcoin has been gaining popularity and your grocer accepts Bitcoin. When you send those $10 in BTC, you might incur a network transaction fee that pretty much increases the bill to a point that you will prefer to pay in cash.

Does the IOTA Coin solve a real-life problem?

There’s a real life example of this. Street vendors or small grocers in Paris have now started to accept credit card payments. However, they claim that they cannot accept payment with a card unless you pay over $14. That’s because the company which helps them accept credit cards takes a fee. This fee can eliminate their profit if they use their credit card machine for less than $14. Thus, it’s an issue which has already surfaced in the world and could hinder how Bitcoin enters our lives.

What does the IOTA Coin do?

The IOTA network is based on the idea that one should carry out a mining procedure which verifies transactions as well as transacts on the IOTA network. This leads to a 0% network transaction fee, thus allowing people to carry out micro transactions. Essentially, one could send $.00000056, the price of 1 IOTA Coin to your buddy without incurring ANY transaction costs. That means that people could be much more attracted to the IOTA Coin because of its ease of application to real life and how user-friendly the coin is. With no network transaction fee, retailers and supply chain managers can greatly benefit from this.

Think of the automotive industry. When a car manufacturer wants to build a car, it will license some of the production to companies overseas who are more cost effective. These offshore companies will ask for hardware from a third company, which manufactures hardware from plastic. This plastic also needs to be bought from another company. Throughout this money flow, the banking transaction fees can add up to millions of dollars. Millions spent on just moving the money from a person to another. Using IOTA Coin, these supply chains could end up saving so many resources with 0 transaction fees. Thus making collaboration much more cost effective and raising the overall interaction that companies have with each other. This opens up many horizons for the IOTA Coin; the applications aren’t just for personal use but can be applied to whole industries.

Could the IOTA Coin Become the Next Bitcoin?

Yes, there are many chances that people realize the potential that the IOTA Coin has over Bitcoin. As of now, they’re working on the first version of their project with the funds received from their ICO. As of now, the IOTA Coin’s market cap is $1.2 Billion. There are strong communities which support the coin and it’s been gaining a lot of attention in the past months. Finding more of these ICOs which actually have a real project is getting harder, but we think that the IOTA Coin has a lot of potential in the future. So, will IOTA Coin become the next Bitcoin? There are good chances of that happening but as we know, the cryptocurrency market is so volatile the coin could pretty much disappear tomorrow. Nonetheless, it remains one of the most relevant Coins launched in 2017.

If you’re interested in altcoins like Ethereum, check out our guide for how to invest in Ethereum here.

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About Article Author

Michael Serrano
Michael Serrano

Michael is an engineer and a bitcoin evangelist. He has been involved in cryptocurrencies since 2013. His biggest wish? 1 billion users of bitcoin, ether and litecoin by 2020. In the last 10 years he has worked for various early-stage start-up as a back-end developer.

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