The FTX crash has also hit the IOTA crypto price in recent weeks. The price of cryptocurrencies fell sharply in a very short time span. In the last 2 weeks, however, the price of the token has stabilized again. How are things going in the last few weeks of the year? Here’s an IOTA prediction 2022.
IOTA Crypto – All you need to Know
What is IOTA?
As mentioned in the previous sections, IOTA is not strictly a blockchain. It is a scalable open-source tokenized communication protocol. The intended use is the transfer of values. The IOTA Foundation (foundation under German law) based in Berlin develops the protocol on a non-profit basis and makes it available.
Origin of the name IOTA
The name IOTA comes from the ancient Greek alphabet and means “something small”. The iota is the 9th letter of the ancient Greek alphabet and is pronounced the same as today’s “i”. The Latin letter “i” is also derived from it. In the IOTA communication protocol, the “i” stands for 1 IOTA and is the smallest tradable unit of value on the network.
The goal of the IOTA Foundation
The goal of the IOTA Foundation is to create a layer of trust for the Internet of Everything. This should enable devices to exchange data and values unchangeably and free of charge. Furthermore, IOTA is working with the industry and the Object Management Group to standardize the communication protocol. Thus, the core goal is that IOTA becomes the “Ledger of Everything”.
IOTA must meet these requirements
In order to achieve the above goals, the following features of the IOTA ecosystem are essential. The network must be highly scalable to handle a significant number of transactions per second. In addition, the network must not have high requirements so that low-power devices are also able to participate directly in the network.
But the most important thing about the network is that transactions can be sent without paying network fees. In other words, if you send 50 MIOTA, the currency of the ecosystem, exactly 50 MIOTA should reach the recipient.
IOTA 2.0 Development Network – First step to the goal
In June 2021, after numerous tests, the IOTA 2.0 Development Network (DevNet) was launched. This is the first fully decentralized, scalable, and fee-free IOTA network, as envisaged when the project was founded in 2015. So DevNet 2.0 includes no more fees, no blocks, no chain, no miners, no waste of energy, no censorship, and no centralization (without a coordinator).
The IOTA Token – You need to know that before investing
Now that you know all the information about the project, you can now address the question of whether it is worth investing in the ecosystem. In this section, we clarify all questions about the token MIOTA. The name of the token results from the fact that you cannot buy the smallest unit of IOTA on the exchanges, but only 1 million IOTA, hence MIOTA (1 MIOTA = 1 million IOTA).
How many MIOTA tokens are there?
The number of existing MIOTA tokens is currently 2,779,530,283. All tokens were already sold in a crowd sale in 2015. Thus, the company of the IOTA Foundation was able to earn the equivalent of 434,511.63 US dollars. A positive aspect of the project is that the IOTA tokens were issued fairly. There were no blocked tokens, no early-stage corporate investors, and no tokens were issued to the founders. Thus, the reasons bought their tokens with their private assets. Furthermore, the community donated 5% of the tokens to the IOTA Foundation to ensure the sustainability of the project.
It is extremely important for the IOTA ecosystem that the price per token is kept rather low. The goal is to use the tokens for micropayments between machines, so a high price is a hindrance. Therefore, in the distant future, it may be necessary to increase the maximum number of tokens. This is possible with a simple trick: the decimal point can be easily moved.
Increasing the maximum number of tokens is usually bad for the owners. Consequently, when more tokens are in circulation, the price decreases as the supply and demand quantity shifts. In the case of the IOTA ecosystem, however, this is not the case.
The following example serves to explain: Let’s say you own 1 IOTA. This can be divided into 1000 MicroIOTA. If you now decide to increase the tokens of MIOTA, this does not refer to the total amount, but there are now simply smaller units. Practically, this means for the user that if they had 1 IOTA in their wallet before the decimal point shift, they still have 1 IOTA in their wallet after the decimal point shift. However, the smallest unit is no longer IOTA, but in this case MicroIOTA. In concrete terms, this means that a new unit, in this case, MicroITA, is added to the IOTA unit system. This has no consequences for the price and for the user.
By 2022, researchers expect that more than 50 billion devices will be networked in the IoT. The goal is for machines to pay for services with small amounts of IOTA tokens. There are currently approximately 2.78 billion MIOTA. Now imagine the following example: the majority of IoT devices receive the equivalent of 1 USD in IOTA for service on average. This scenario means that there is no doubt that the price of an IOTA must increase due to the scarcity. As a result, in due course, a split into smaller units is required in order to continue to grow. New applications may also require an increase in the future.
This is how much 1 MOITA costs
The price of a MIOTA on November 27, 2022, is $0.21, which results in a market capitalization of almost $598 million. The all-time high was 5 years ago and was $5.69.
How do I buy MIOTA?
You can buy MIOTA on most exchanges. MIOTA is available on Binance, Coinbase, Kraken, and other major exchanges, among others.
IOTA Wallet: How do I store IOTA?
There are several ways to do this. The most important thing is, no matter what form of storage you use, that no third party can gain access to the coins.
The simplest method is the in-house smartphone wallet, called Firefly Wallet. This can be downloaded directly from the respective app stores. For security reasons, however, this wallet should only be used to store small amounts, since a cell phone offers a high potential for hackers to attack. The download link for the Android app can be found here , for iOS here .
Another possibility is a browser extension, eg Metamask. A tutorial for the installation can be found here . However, only small amounts should be kept here, as the risks are similar to those of a smartphone wallet.
The safest method is to keep your MIOTA on a hardware wallet. The hardware wallet stores the user’s private keys offline and securely. This reduces the risk of losing your coins to a hacker attack to almost zero. So it makes the most sense to keep large amounts on a hardware wallet.
How did IOTA price Perform in the last few weeks?
The IOTA course had to see losses in the last few weeks. At the beginning of the month, the IOTA price rose from $0.25 to $0.27. But as a result, IOTA suffered a heavy loss due to the FTX crash. It went down to below $0.20.
In the days and weeks that followed, the price stabilized slightly again. Most recently, IOTA settled between $0.21 and $0.22. Since the price did not rise as much as other cryptocurrencies in the last rise, the IOTA token fell to 65th place in the ranking of cryptocurrencies by market capitalization.
Why is IOTA down in 2022?
In 2022 there was a strong bear market that caused almost all cryptocurrencies to fall in price. IOTA was hit particularly hard . At the end of 2021, the IOTA rate was still $1.48. But in the months that followed, IOTA lost massively in value. Losses were almost 85%.
The fact that IOTA has lost so much and keeps falling in the list of cryptocurrencies is due to the fact that IOTA has not been able to develop significantly in recent years and could not take the hype from 2017 with it. At that time, the IOTA token rose to fourth place among the coins. The IOTA forecast for the end of 2022 is therefore not particularly positive either.
What is the IOTA forecast for the end of 2022?
With the FTX crash, the IOTA forecast for the end of 2022 has deteriorated again. In our last forecast before the crash, we had assumed a slightly positive forecast. But at the moment there is little sign that the IOTA price could rise in the coming weeks in December .
However, December could again bring slightly bullish prices for cryptocurrencies. It is difficult to predict whether a possible increase in bitcoin and other altcoins will also have a significant impact on IOTA. On the other hand, a further drop in the price below $0.20 in the next few weeks is also rather unlikely.
IOTA Prediction 2022: Where will IOTA price reach?
With the current direction of the IOTA course, it is difficult to justify that the course should rise sharply in the next few weeks. A slight year-end rally in the overall market could have a slightly positive impact on the IOTA price, improving the forecast for year-end 2022.
All in all, we assume that IOTA will move sideways with possible deviations from the current price of plus 10 percent to minus 10 percent. Therefore, we see an IOTA forecast of $0.20 to $0.24 by the end of 2022.
Is IOTA Crypto a Good Investment in 2023?
For a long time, IOTA was considered a future project and one of the most exciting topics on the crypto market. But those days seem to be long gone. Other projects have had an excellent technical development, while IOTA is still struggling with a possible decentralization of its network.
Nevertheless, there has been greater progress in the last 1-2 years. The potential of the Tangle structure as an alternative to the blockchain is still huge. However, an investment in IOTA represents a great risk, which could also pay off strongly. If you are willing to take risks and still believe in a future with IOTA, we recommend a medium to long-term investment.
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