Crypto competition is gearing up: IOTA already works for the future, while others run in place

Crypto competition is gearing up: IOTA already works for the future, while others run in place

The real supply of Bitcoin is low as 1/5 of BTC is permanently lost, a new blockchain protocol for digital assets will be built on Monero and the EU projects dedicated to building smart cities

According to The Wall Street journal, 20% of all Bitcoins are lost forever

It is just an estimate, no one knows it for sure. It creates a new niche for businesses recovering lost wallets. More and more companies could try to help their clients restore access to lost Bitcoin funds. The success rate is low, near 30%, but these companies don't see any shortage of customers.

To be honest, it couldn’t be regarded as a good thing. It could be a good thing for those who hold Bitcoins and plan to sell them later for dollars. But for those who think that Bitcoin is gonna be a world dominating currency that’s bad news. Why? Because it’s a deflationary currency, and deflation can’t be good for economy. Inflation encourages spending because later you would buy less with the same money, so there’s no reason to keep it. Deflation does the opposite.

Why cryptocurrencies are rarely used now? Because their price grows over time, so it’s better to pay with usual fiat money. If we just buy and sell it like a commodity, that’s fine. For money, that’s unnatural. Deflation brings chaos in economy. Everybody holding the money instead of spending them forces manufacturers to lower prices more and more, receiving less profit from their business. Being unable to sustain their operations on the same scale, businesses have to fire their employees. Jobless people have to buy even less, and can’t pay their loans. Banks suffer from losses. Deflationary death spiral continues to spin downwards until economy collapses.

So let us question ourselves: do we really think it’s possible for Bitcoin to become a world common currency? The answer is rather 'very unlikely'. A very expensive commodity, that could be used for payment everywhere — that possible. But there must be other inflationary currencies backing it up.

Monero, a private cryptocurrency, will get a second layer

The new protocol for digital assets, named Tari, will be built on top of Monero blockchain.

The competition in a crypto sphere is gearing up. Each month dozens of new coins appear on the market, all claiming to be the fastest, or the most secure, or the most private ever. It’s hard to keep up with the competition. Many coins have the advantage of first movers, but over the time their technologies become outdated. All of them have to implement new features to be interesting to customers.

Monero, having only one feature that makes it valuable only to drug dealers and other criminals, has to offer something new. And it does, by offering a new layer, that’s a right move for Monero. This layer can be used to implement bonus programs for customers in various companies. If Monero could get some partnerships in this area, it will be enough to claim that it’s not only for launderers and drug sellers, thus potentially evading a possible great purge of private cryptocurrencies from the market later.

IOTA participates in a new project dedicated to building smart cities

This project is approved by the European Commission and it will transform 7 European cities, making them energy efficient and digitalized.

Right now, IOTA is one of the most promising technology on the market. Based on DAG, not on blockchain, IOTA has no problems with scalability or fees. It constantly seeks for partnerships and has a lot of possible use cases.

Future smart cities will have billions of interconnected devices. Cars, home devices, street environment, all this infrastructure needs a network and a common standard that it can rely on. IOTA is an ideal candidate. Contrary to a popular belief, it doesn’t even need to transfer tokens in a transaction to send any information. Information can be sent for free on Tangle. All companies that partnered with IOTA are developing IoT devices, they could have developed their own standards, and then struggle to make them connect. But now as they have it already developed by IOTA Foundation, why bother with it.

Over the time, we could see more and more real use cases for IOTA. Only 5 years left from now on to smart cities, that’s gonna be interesting.

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