The market for cryptocurrencies is growing considerably well, and new digital currencies are entering the market every month. Among the newly-introduced cryptocurrencies, IOTA is making headlines with its phenomenal rise in value. In the recent past, the IOTA coin has emerged as a reasonable digital financial asset for investment. It has become the seventh-largest cryptocurrency by market capitalization. Total IOTA coins circulating in the market are now worth $11 billion. This makes everyone excited to invest in IOTA. However, before doing that, traders and investors are looking for a reliable IOTA price forecast that can help them make a better decision.
The following information discusses the five essential things on the IOTA coin that everyone should know before investing.
What Is IOTA?
IOTA coin is a cryptocurrency based on the technological developments associated with the Internet of Things (IoT). As IoT technologies contribute to innovative solutions and make waves in the consumer space, the value of the IOTA coin increases. As a cryptocurrency, IOTA is developed on the IoT interface. The term “IOTA” stands for “Internet of Things Application.”
IOTA is a decentralized cryptocurrency, which is primarily used for facilitating business communications and online transactions. Unlike other cryptocurrencies, the IOTA coin is not based on blockchain technology. Instead, the coin leverages the role of IoT technology.
History of IOTA Coin
The IOTA Coin was founded in 2015 by German developers – David Sønstebø, Dominik Schiener, Dr. Serguei Popovm, and Sergey Ivancheglo. In the past five years, the IOTA foundation made multiple developments in its cryptocurrency to improve the market for IOTA coins. In the initial days, the IOTA market supply was fixed at 2,779,530,283,277,761. Therefore, the total number of IOTA coins issued is nearly 2.8 quadrillions.
The Working of IOTA Coin
IOTA can be purchased from various platforms, and it involves zero transaction fees. Besides, the IOTA coin is not available for mining. All IOTA transactions are verified at the source. This is how the IOTA coin works.
What is IOTA Coin Used For?
IOTA has some really good real-world uses. It can be applied to unlimited transactions on the crypto exchange platform. It gets processed instantly, and the IOTA process is free of cost on all transactions. Hence, the IOTA coin can be of great use in the global payment system.
In addition to individuals, organizations can also use IOTA coins to transfer funds and leverage the power of free transactions in the micro-payments industry. IOTA coins are also used to make calls over the blockchain for transactional purposes.
Growth of IOTA Coin in Price So Far
According to IOTA price prediction, the price movements of IOTA have registered steady growth in the past five years. As of May 4th, 2021, the price of the IOTA coin stands at $1.98. In 2015, the IOTA coin entered the market at a $0.35 price. So far, the live market cap of IOTA is $5,516,698,515.
There are some known risks of investing in IOTA coins. Firstly, IOTA is not well regulated by the crypto commissions around the world. Several crypto regulators warn investors of the dangers associated with IOTA transactions. This is because the IOTA coin does not run on the blockchain.
Manipulation of IOTA can also occur as the growing prices of IOTA can attack high-end investors, who could easily shift the paradigm of the market at their will.
IOTA Price Prediction for the Next 5 Years
IOTA is not a finished product, and it is currently using a centralized coordinator. The IOTA project has certain technical flaws and even security bugs. Despite these drawbacks, the IOTA coin is set to grow well due to the rapid use of IoT applications and devices in all walks of life. Most crypto experts predict that the price of IOTA could go up to $4.88 by 2023.
All things considered, this IOTA price forecast sees an upward trend in the future of the IOTA coin. Investing in IOTA is a decision that is based on the risk appetite of the investor. Investors can use Bitcoin and Ethereum to exchange IOTA at the right time.
Victoria has recently joined our team as a content officer. She has written a number of news articles in a different niche such as Stock market, Emerging technologies, Economics, and various analysis. She has 10+ years of experience in writing and has interviewed multiple personalities of various backgrounds. She also loves to write books on personal finance.