The Iota cryptocurrency is now the fifth most valuable coin in the cryptocurrency market. IOTA recently surpassed Litecoin, NEM, and NEO with regards to market capitalization and is now valued at $3 billion. According to Coinmarketcap.com, IOTA was introduced on July 13 last month with an introductory price of $0.638503. Its price however devalued to 0.159508 but is now slightly above $1.
What is IOTA?
IOTA is just another altcoin. iota.org calls it the backbone of the "Internet of Things." This cryptocurrency was created to help computers communicate and make free transaction settlements.
It also uses a distributed ledger called 'The Triangle.' Most cryptocurrencies such as Bitcoin uses the blockchain technology.
The developers use "the triangle technology" because the blockchain technology has drawbacks such as the inability to make micro payments in the ever changing internet of things. IOTA is a non-minable cryptocurrency unlike Bitcoin and Ethereum; this means that its coin supply of 2.7 billion coins will not change, unlike Bitcoin and Ethereum whose coin supply keeps increasing due to coin rewards awarded to miners.
The benefits of non-minable cryptocurrency such as IOTA
Cryptocurrencies that are non-minable have the potential of increasing in size since their supply is constant.
When compared to Bitcoin, IOTA's price can increase due to the lack of currency supply. Bitcoin's price can devalue or stagnate because new Bitcoins are being introduced into the crypto currency market. IOTA is thus a good investment option for cryptocurrency speculators. Since IOTA is the 5th most valuable cryptocurrency, its position might go up depending on its price since the price of IOTA coins is constant.
Bitfinex.com, the largest cryptocurrency trader, recently introduced IOTA among the crypto currencies it trades. Its introduction to a large cryptocurrency site brings the confidence of the coin in the market.
New crypto currencies
According to Coinmarketcap.com, an average of three cryptocurrencies are added in the cryptocurrency market each day.
In the past one week, coin market cap identified 22 new crypto currencies and added them to its platform. Recently added cryptocurrencies are Bolenum, 0x, Health Care Chain, The Champion, and Excelcoin. The performance and acceptance of new cryptocurrencies are uncertain since their developers are unknown plus there is little or no information regarding their Market Capitalization and coin supply.
