Market Mad House

In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche


Does the IOTA (MIOTA) Cryptocurrency have any Value?

The IOTA (MIOTA) is one of the most ambitious cryptocurrencies around. IOTA’s creators are trying to build an Ethereum alternative that will function as a global marketplace for data.

Moreover, they have even created an alternative to Smart Contracts called the Tangle. Smart Contracts are built on the Blockchain, the Tangle is built is on a directed acyclic graph (DAG).

The Blockchain is a series of blocks with a very-limited capacity for transmitting data. The DAG is a series of circles that provides a smoother and more open flow. Theoretically, the DAG can transmit a far greater volume of data.

Has IOTA solved the Blockchain Scalability Problem?

Therefore, the DAG is a sidechain; a bypass around the Blockchain, designed to solve the Blockchain Scalability Problem.

Simply put, the Blockchain scalability problem is a speed limit that prevents most Blockchain platforms from processing more than a few transactions a second. For example, Bitcoin (BTC) can process around seven payments a second, while Ethereum (ETH) can reportedly handle around 20 transactions a second.

The Scalability Problem makes it unlikely that cryptocurrency or blockchain can serve a mass market. To function as a mass-market solution; a cryptocurrency would need to process several hundred or several thousand transactions a second.

The IOTA Tangle solves the scalability problem. If it works as advertised, Tangle would add a lot of value to the IOTA (MIOTA). For example, Tangle could serve as the basis of cryptocurrency credit or debit cards or a blockchain banking platform.

Is the Tangle the Key to IOTA’s Success?

The Tangle might give IOTA a much higher level of security than existing sidechains. The problem with sidechains is that they have a lot less encryption than blockchains.

The Tangle would offer more security and capacity because it is larger and more complex than existing Sidechains or blockchains. The complexity alone generates more security.

An interesting way to think of the Tangle is as a mass of sidechains. Hackers will have a hard time cracking it because there are lots of routes for data to travel.

Theoretically, a Tangle will provide built-in security features that can make up for the lack of encryption. Password protection, identity checks, and automatic inventory monitoring are among the tasks a Tangle may perform.

The Blockchain is slow because it is heavily encrypted. Sidechains are faster because they have less encryption. However, sidechains are more vulnerable because they have less security.

The Tangle would add a higher level of security to a sidechain. Only time will tell if that layer of security would be sufficient.

Presumably, the Tangle would be cheaper than Ethereum smart contracts because there is no mining involved. That eliminates middlemen with an incentive to jack up the price.

Governments and corporations might prefer that business model because it would give them more control. Cryptocurrency Geeks will be leery because there would apparently be less privacy.

IOTA is a Marketplace for Data

A potentially lucrative feature of IOTA is the decentralized data marketplace. Theoretically, the marketplace would enable people and businesses to sell data to anybody.

For example, a self-driving car might “sell data” about driving habits or rider’s habits to automakers or Uber. The organization behind IOTA, the IOTA Foundation, has created carIOTA, a Tangle designed to facilitate data collection from vehicles, Blokt reported.

The marketplace would harvest data from the Internet of Things (Iot) and sell it. The business plan is not unique the ERC20 based Opiria (PDATA); the pre-ICO company Datafund, and Measureable Data (MDTA) are trying do the same thing.

The thinking is that selling data will give a blockchain platform a massive source of revenue to tap. Opiria CEO Dr. Christian Lange called personal data “is the oil of 21st Century.”

Consolidation of data markets will be a logical outcome as these companies merge or acquire each other. Mergers and acquisitions are inevitable because the data marketplace platforms lack the resources to exploit the opportunity.

Can IOTA (MIOTA) tap a $42 billion market?

Data can generate a lot of revenue. Statista estimated that Big Data generated $42 billion in revenue in 2018. That figure is projected to grow to $49 billion in 2019; $56 billion in 2020, and $103 billion in 2027.

The European Commission forecast that the value of European citizens’ personal data will reach €1 trillion ($1.17 trillion) by 2020, Datafund noted. If that claim is true, personal data would be worth 8% of the Gross Domestic Product (GDP) of the European Union in 2020.

The business model is similar to that at Alphabet (NASDAQ: GOOG), monetize data sell it, and use the cash generated to finance research and development. Alphabet (NASDAQ: GOOGL) or Google was very successful, but can IOTA follow in its footsteps.

The IOTA data marketplace would threaten privacy by turning personal data into a commodity. Yet IOTA would give average people more control over data by monetizing it.

A potential flaw is that average people would refuse to sell their data. A greater dilemma would be users demanding too high a price for data. Either way, there will be many roadblocks to widespread adoption, including laws governing data and its use.

The risks here are great because there is no guarantee there is a market for that data. Opiria, claims to have agreed to sell data to several large companies including Procter & Gamble, Daimler AG, Volkswagen, and General Motors.

IOTA (MIOTA) has Big Corporate Partners including Fujitsu

The IOTA Foundation claimed to that several large companies; including KPMG, Philips, Fujitsu, T-Mobile, Accenture, and Bosch, are taking part in the data marketplace. Unfortunately, the website did not say how those companies are taking part or if they are paying for data.

MIOTA’s value increased by 13% on 27 August 2018 after Fujitsu released a paper detailing IOTA uses, Sludgefeed claimed. The Fujitsu Proof of Concept Paper theorizes that IOTA can improve industrial production and Supply Chains.

“Fujitsu is well-equipped to help roll out IOTA as the new protocol standard as we are experts in both IT services and the manufacturing of IT products,”  Fujitsu program manager Leopold Sternberg said. Fujitsu’s experts apparently believe IOTA is capable of controling robots, the paper indicates.

Fuijitsu’s main goal is to create a Blockchain trail that will probably make it easier to keep track of products and supplies. Fujitsu (TYO: 6702) claims to be the world’s fifth largest supplier of information technology (IT) services. Moreover, Fujitsu claims to provide IT services in 100 countries.

How IOTA (MIOTA) plans to Make Money from Big Data

The IOTA Foundation has developed several potentially lucrative data tracking technologies. Marketplace sensors track data generated in specific locations such as a city in Poland.

A lucrative use of IOTA’s data sensors would be to track customers in a specific business – such as a retail store. Data sensors have obvious uses in factories and fulfillment centers where they can monitor shipping, inventory, supply chain, and production.

IOTA is trying to make money from Marketplace Sensors by selling streams of data to users. Anybody can apparently purchase a data stream from its website.

The revenue from the data streams will supposedly finance future technologies; including Feeless Micropayments and Secure Data Anchoring. The IOTA Foundation mentioned these solutions at its website, but did not say if they were in operation.

The obvious use of Secure Data Anchoring and Feeless Micropayments would be to create more streams of data IOTA can sell. Obviously, the billion dollar question will be is there a market for that data?

Potentially, Feeless Micropayments will have several lucrative uses; including e-commerce, gaming, wagering, tax payment, lending, banking, and the gig economy. Secure Data Anchoring would be invaluable for data storage and security purposes.

The IOTA (MIOTA) is a Good Speculative Cryptocurrency

I think IOTA (MIOTA) is a good speculative cryptocurrency play for two reasons.

First it, has an actual business plan selling something for which there might be a market – data. Second IOTA is cheap which reduces the risk of speculating in it.

The MIOTA Tokens had a Coin Price of 71.7¢, a Market Capitalization of $1.993 billion, and a 24-Hour Market Volume of $100.369 million on August 28, 2018. There is no Total Supply of MIOTA so the Circulating Supply of 2.780 billion MIOTA reflects the value of all the Coins.

IOTA’s value depends on upon two markets, one for cryptocurrency and one for data. That makes it highly vulnerable to inflation. Speculators should realize that MIOTA can lose its value. It is also subject to wide price fluctuations which can help speculators make money.

MIOTA is good for Speculators

This means people with a little cash can afford to take a risk on IOTA. Obviously, only use money you can afford to lose when speculating with MIOTA.

A cryptocurrency like MIOTA is like a small cap stock with an intriguing business plan. It has the potential a lot of money someday but probably will not. That makes money spent on MIOTA speculation not investment.

There are some serious drawbacks to MIOTA. It is not ERC20 or Ethereum-compatible; therefore, it is not compatible with most blockchain platforms or converted into other cryptocurrencies.

A greater drawback is that MIOTA has no value if IOTA’s without widespread adoption of IOTA’s technology. All cryptocurrency speculators need to look at MIOTA because it might make money someday. Everybody else needs to stay away from MIOTA because it has no value right now.