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Why IOTA Belongs On Your Focus List

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For the serious student of cryptocurrencies, IOTA is a name most likely you know well. However since only about 8% of Americans own any crypto, and then 80% of those folks own bitcoin, it’s time to get to know your neighbors.  

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Ok, let’s start with a trick question.  Over the next 10-20 years, which technovation will have the greatest impact on society: cryptocurrencies, the Internet of Things (IoT) or Artificial Intelligence (AI)?  

The answer is: they will each be so big and so important that it really doesn’t matter.  As an investor you can go with anyone of these themes. But then, you might want to focus attention on IOTA. It could be like getting a techno triple play.  

This is not to suggest dumping your bitcoin, Ethereum, Ripple or other major names. In an uncertain world, the big guys still carry a better risk profile.  But in today’s market, altcoins represent the most depressed values. Out of this group, IOTA offers investors participation in crypto, IoT and AI.

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I do not own IOTA so objectivity isn’t being compromised.  Here are a few things about IOTA that stand out.

Ideal For High Volume Small Transactions

For all their benefits, single layer blockchains present a scaling nightmare to bitcoin and even so called second generation names like Ethereum.  Solutions like the Lightning Network and Raiden, when fully deployed sometime later this year, will help. But the ability to process 50,000 transactions a second is still a way off.

IOTA is specifically targeted for high volume transactions at near zero costs.  This makes a competitive stand against the ultra fast but high cost giants like Visa, MasterCard, etc. The secret is that IOTA doesn’t depend on a blockchain.  

Instead, developers have created something they call Tangle. IOTA is a blockchain free cryptocurrency.  Tangle is designed to remove the necessity of predetermined block times. Instead of many nodes confirming a transaction, the sender of the IOTA transaction must confirm two other transactions on the Tangle.

In other words, the entire time and energy intensive crypto mining process in sidetracked replacing it with a user verification process. To put it more simply, every user becomes a miner in the network.

This reduces cost to the point where IOTA transactions are near zero.  Compare this to a Visa or MasterCard debit card merchant service charge of 1.5% or a credit card fee of 2.9%-4%+ and there is no contest.

Is Tangle more secure than blockchain?  An honest answer is Tangle has not been tested enough to get enough data.  But if you accept that small transactions are less of a so called “attractive nuisance” than the size Bitcoin is best handling, then the effective security risk becomes tolerable.

IoT And AI: Real And Imagined

Small and even micro-transactions will be the measure of IOTA for the immediate future and there is nothing wrong with that.  After all we are talking about a multi trillion dollar global market. But this isn’t what crypto visionaries see as the end game.

Advocates of IOTA paint a glowing picture for the crypto in IoT and AI based on the near zero transaction cost and huge supply of the currency.  If things turn out this way, it means that IOTA is appealing to an entirely different segment than bitcoin, ether, Ripple or many altcoins.

By huge supply we are talking about each traded IOTA quoted in MIOTA or a million units. Total supply is defined as one Petalota. That equals 10 IOTA to the 15th power. If you prefer real numbers, the total supply is 2,779,530,283,277,761. Try saying that number quickly. Certainly the founders of IOTA had such a global vision when they decided to create such a massive supply.

Supply/Demand and Pricing

The one thing about the IOTA story is how can this massive supply benefit investors. It seems counter intuitive.  But I must be too dim witted to appreciate this because back in December before prices tumbled, the public valued IOTA at nearly $15 billion. Since then, like all cryptos, IOTA dropped more than 80% to around $2.6 billion. So did the end of the so called crypto bubble sour investors.  Not at all. Since the April 10th low, the price has jumped 70% to $4.7 billion or about $1.68 per MIOTA.

As we said at the start, long time IOTA watchers will find nothing surprising.  But for the majority, you will want to keep an eye on IOTA; it is not just another altcoin. And it’s price is still less than one-third of last December.  

Featured image courtesy of Shutterstock. 

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.4 stars on average, based on 75 rated postsJames Waggoner is a veteran Wall Street analyst and hedge fund manager who has spent the past few years researching the fintech possibilities of cryptocurrencies. He has a special passion for writing about the future of crypto.




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  1. justinorwell

    April 19, 2018 at 9:04 pm

    Great article! i think IOTA is one to watch for the future due to their proposed use of DAG as a blockchain alternative. However the theory/idea of using DAG as a blockchain is un-proven even in the research community. I’d rather stick with some other IOT platform that is backed by sound and established research e.g. SDChain. Mainnet in August..need i say more?

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Altcoins

Five Low Market-Cap Altcoins With Huge Potential

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With more than 1,600 altcoins in circulation, finding the appropriate balance between risk and reward isn’t always easy. Making matters more challenging is the fact that hundreds of projects have already been labelled duds by researchers who have tracked the life cycle of digital currencies beyond their initial coin offering.

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While many investors are perfectly content sticking with bitcoin, Ethereum and a couple of others, those of us in search of the next ‘diamond in the rough’ must venture beyond the ten largest cryptocurrenices by market capitalization.

Below, we look at five low market cap altcoins with significant upside potential. It’s difficult to say whether these coins will generate 100 times ROI or anything that mirrors the rapid rise of bitcoin and Ethereum. However, the project specifications suggest they are a good place to start.

DragonChain (DRGN)

The DragonChain project emerged out of Disney in 2016 and was later developed as an open source platform. In its modern form, DragonChain is a business platform that allows for the creation of a secure and scalable blockchain. Part incubator, part marketplace, DragonChain provides smart contract infrastructure with a focus on security, development and scalability.

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DRGN, the currency powering the DragonChain platform, has a total market capitalization of $185 million and a price-per-coin of less than $0.80. When measured in terms of market cap, DRGN is a top-100 cryptocurrency project. Given its potential to transform small business adoption of blockchain technology, DRGN may be considered undervalued due to its limited exchange listings. The coin has yet to make its way onto the major exchanges but can still be found on platforms such as Kucoin, IDEX and EtherDelta.

Ark (ARK)

Those of us familiar with ICON know there is huge potential in connected networks. The Ark platform is a smaller-cap alternative that connects every single cryptocurrency through a “virtual spider web of endless use cases.”

Ark employs a Delegated Proof-of-Stake (DPoS) consensus protocol that promotes decentralization and universally accessible programming language in support of wider adoption. Ark falls within the broader category of platform coins, which means it is best served as a buy-and-hold strategy.

ARK token is currently ranked 62nd in terms of market cap with a price per coin of less than $3. Its primary markets include Binance, Bittrex and Upbit.

Vertcoin (VTC)

The next cryptocurrency on our list is ranked all the way down at 153rd in terms of market cap. Vertcoin captured our attention for its outstanding development team, transparency and ASIC-resistant standard (the latter makes VTC one of the most decentralized cryptocurrencies on the market). Proponents of decentralization will therefore find plenty of upside with this coin.

Interestingly, Vertcoin is also one of the oldest cryptos on the market. Founded in 2014 as an alternative to bitcoin and Litecoin, VTC aims to become the utility coin of the future. The project is on the forefront of Lightning Network development and was even mentioned in Litecoin’s whitepaper as a candidate for cross-chain atomic swaps.

At the time of writing, VTC token is valued at over $2. It has not been immune from the recent market downturn but its long-term prospectus is as solid as they come.

Power Ledger (POWR)

The POWR token is also ranked outside the top-100 in terms of market cap, putting it alongside some of the more obscure cryptocurrencies. However, the platform’s value proposition is as tangible as it gets.

Power Ledger is headed by Jemma Green, who recently became the major of Perth, Australia. The platform allows consumers to trade electricity with one another in exchange for real-time payments facilitated through the blockchain. The company calls itself the “peer-to-peer marketplace for renewable energy” because it allows consumers to select clean energy sources and receive more money for excess power using low-cost settlement technology.

PWR experienced explosive growth during the height of the bull market. Tokens are currently valued at around $0.40.

Deepbrain Chain (DPC)

Hacked reviewed Deepbrain Chain during the ICO stage back in December. Though the results were underwhelming at the time, much of the concern stemmed from KYC implementation issues and unusual token metrics.

Valued at less than $1 a coin, Deepbrain Chain can be considered a bargain for its role in using artificial intelligence (AI) to lower the cost of computing. Deepbrain Chain is operating in one of the fastest-growing markets (AI), which partly explains its undervalued status. As the company rightly explains in its whitepaper, 5,000 AI startups came into existence between 2012 and 2016, collectively raising over $22 billion. However, unlike those companies, DPC has already established a firm partnership with Neo and is widely considered one of the leading AI projects in the blockchain space.

Deepbrain Chain has a total value of $139 million, placing it in 113th spot by market cap.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.5 stars on average, based on 410 rated postsSam Bourgi is Chief Editor to Hacked.com, where he specializes in cryptocurrency, economics and the broader financial markets. Sam has nearly eight years of progressive experience as an analyst, writer and financial market commentator where he has contributed to the world's foremost newscasts.




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Altcoins

Cryptocurrency Bull Brian Kelly Rallies Behind Bitcoin Cash

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Bitcoin vs. bitcoin cash

Cryptocurrency investor Brian Kelly believes bitcoin cash is an essential buy for digital currency holders in the wake of an important meeting of BCH miners over the weekend.

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Bitcoin Cash: A Must-Have

In a Monday interview with CNBC‘s “Fast Money,” Kelly cited the development of a new bitcoin cash development fund as the principle catalyst for the forthcoming rally.

Miners are “going to take some of the rewards they get from mining and put it in a fund to build stuff on top of bitcoin cash,” Kelly, who heads BKCM investment firm, said of the fund. “That’s how blockchains gain value.”

He added: “You’re going to be getting more use cases to the extent that usefulness translates into value. That could be a positive for bitcoin cash.”

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Bitcoin cash was among the worst performers last week following a hard fork upgrade that gave it 32MB blocks and smart contract capability. The upgrade was intended to bring new functionality to the blockchain but instead left a huge chunk of the BCH community behind. As of Friday, nearly one-in-five bitcoin cash nodes were running old software. In other words, they missed consensus.

The market’s reaction to the hard fork last week was relatively muted, which some say reflects general apathy toward bitcoin cash. Kelly’s bullish outlook shined the spotlight back on the digital currency, which continues to be one of the market’s best performers since early April in spite of its recent skid.

BCH/USD Price Levels

The value of bitcoin cash fell on Tuesday, mirroring a general decline in the cryptocurrency market. At press time, BCH was down 4% at $1,191.

Bitcoin cash has shed more than 16% over the past seven days, dragging its market cap all the way down to $26 billion. By comparison, bitcoin values have declined less than 5% over the same period.

Despite its recent skid, bitcoin cash is trading well above its April low of $608.23.

More than $617 million worth of BCH exchanged hands on Tuesday, according to data provider CoinMarkeCap. Overall trade volumes for all cryptocurrencies was roughly $16 billion.

OKEx was the largest market for BCH transactions, accounting for roughly 20% of daily turnover. LBank facilitated 12% of daily transactions and HitBTC 9%.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.5 stars on average, based on 410 rated postsSam Bourgi is Chief Editor to Hacked.com, where he specializes in cryptocurrency, economics and the broader financial markets. Sam has nearly eight years of progressive experience as an analyst, writer and financial market commentator where he has contributed to the world's foremost newscasts.




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Altcoins

As Gemini Embraces Zcash, Japan’s Coincheck Delists Privacy Coins

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Japanese crypto exchange Coincheck has announced it will remove privacy coins from its trading platform in the wake of a “drastic review” of its internal controls. The decision paints privacy coins like Zcash in a negative light vis-a-vis consumer protection and stability.

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Coincheck to De-List Privacy Coins

Beginning next month, trading of Zcash (ZEC), Monero (XMR) and Dash (DASH) will no longer be possible for Coincheck users, according to a recent statement issued by the firm. The so-called privacy coins are being removed as part of a “new management strategy that thoroughly protects customers.”

Traders have until June 18 to withdraw their coins or risk having them converted to yen at market price. According to CCN, Augur coin (REP) will also be de-listed due to its association with online gambling.

Rumors have circulated for months about Coincheck’s plans to de-list anonymous cryptocurrencies in the wake of a high-profile cyber heist in January. The attack, which targeted $530 million worth of NEM tokens, resulted in a sweeping review of domestic cryptocurrency exchanges by Japanese regulators.

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Coincheck may not be the last Japanese exchange to de-list anonymous coins. Japan’s Financial Services Agency (FSA) is said to be encouraging other domestic exchanges to do the same.

The Coincheck platform has since been acquired by Monex Group, one of Japan’s largest online exchanges. The purchase allows Monex to rehabilitate the troubled exchange following a disastrous PR campaign.

Privacy Coins: An Opportunity and a Challenge

Though privacy coins had nothing to do with the Coincheck heist, regulators have made a causal link between anonymity and criminality when it comes to cryptocurrency. Pressure from regulators could force more exchanges to de-list privacy coins to avoid further complication down the road.

Debate over privacy coins extends far beyond the currency and into the realm of politics and philosophy. Banks and governments have a vested interest in keeping anonymous currencies in check. On the opposite side of the spectrum, privacy advocates like Edward Snowden argue that anonymous coins are the future of trade regardless of whether criminals take advantage of them.

Research carried out by the University of Michigan-Dearborn’s Jeffrey Quesnelle concluded that Zcash had no major vulnerabilities when it comes to privacy. This has been confirmed by other privacy specialists who say ZEC is the most anonymous privacy coin of all. That’s because it employs zero-knowledge proofs as well as enhanced encryption techniques that completely obscure the sender’s address. This is in contrast to other privacy-focused protocols, which generate fake addresses to hide the sender’s identity.

The U.S.-based Gemini exchange recently announced it had gained regulatory approval to begin listing Zcash. Deposits in ZEC were enabled on Saturday with full trading support expected to be launched on Tuesday.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.5 stars on average, based on 410 rated postsSam Bourgi is Chief Editor to Hacked.com, where he specializes in cryptocurrency, economics and the broader financial markets. Sam has nearly eight years of progressive experience as an analyst, writer and financial market commentator where he has contributed to the world's foremost newscasts.




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