Recent Buy – IOTA

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An update on a recent purchase in my blockchain/cryptocurrency/digital asset portfolio. I am continuing to add and deploy capital in this space, which is nascent and has immense potential. There are so many exciting projects that its hard to pick the ones that can really change the world.

Over the past month or so, Ive been reading about this token and one reader on this blog pointed it out too a few days ago. But as is the case with crypto, if you dont move fast enough, the prices run away and you end up paying quite a premium. Same happened with this one, but as it turns out, it wasnt too late — the token price has already doubled since my purchase a little over a week ago.

I bought 268 MIOTA (IOTA) (so, 268,000,000 IOTAs) tokens in this transaction. I intend to buy more as I learn more about the space, but I decided to start with this amount. IOTA is a very interesting project, which breaks the rules of some of the other cryptocurrency world and forges its own path.

IOTA is designed for the Internet of Things — which allows machines to communicate and exchange token between each other. This is achieved by using a non-blockchain architecture and instead going with what the foundation calls “Tangle”, a directed acyclic graph (DAG). The protocol is designed with scalability in mind, something that most other blockchains struggle with and have had to resort to separate layers to provide scalability. The beauty of this system is: while blockchains slow down with more blocks to get validated as transactions increase, the IOTA tangle increases throughput in conjunction with activity, i.e., the more activity, the faster the network. In addition, the system is designed to have no transaction fees, so all of the value gets transferred with no losses to miners and other middleman.

While not built using IOTA and built on Ethereum instead, this project from HP Enterprises demonstrates exactly the type of applications IOTA is perfectly suited for. In this project, HPE demonstrates empowering iRobot’s Roomba vacuum cleaner to buy electricity directly from a utility company to recharge itself. Similar projects are extrapolated for autonomous cars negotiating grid prices and recharging themselves when needed. For any such machine-to-machine communication, IOTA is perfectly suited if the platform can take off and gain traction in the marketplace. The IOTA marketplace is also showing a lot of promise in this nascent stage.

The foundation has already caught the imagination of a some of the largest companies in the world, as they have started experimenting using it in their systems and integrate it into their products and services. It is one of the most original projects out there in the crypto world, and I still have a lot of questions before I understand it fully. But for now, I will leave you with the following reading material if you are interested in learning more about IOTA.

What do you think of this purchase? Do you own IOTA or have an opinion on this project. Share your thoughts below.

13 thoughts on “Recent Buy – IOTA

  1. IOTA has been making the headlines in recent days. The jump in price caused the financial sites to jump all over it and I read the head of the IOTA foundation announced a deal with Microsoft, Samsung and others. Man, does my head spin with all this crypto news coming out. It seems endless and really tough to speculate on the next big thing. How are you storing all your different currencies? There is no one size fits all wallet out there. Thanks for sharing your recent pick up.

    • Yes, lots of headlines coming out of IOTA camp. There was also an announcement coming out of Volkswagen, Bosch & Cisco experimenting with the token for some applications. Definitely some cool apps will come out of this technology I think and the potential is more suited to what blockchain is touted to bring, even though IOTA isnt technically blockchain.

      Best
      R2R

    • That was a cool experiment. There are already some really cool use cases being thought up that will be possible with blockchain and esp with IOTA’s tangle. Autonomous systems bartering and negotiating.

      R2R

  2. Apple says:

    Yes I have IOTA, it’s sitting on the exchange. Where are you storing yours?
    Keeping alt coins safe seems to be the hardest thing. I do have a ledger nano but am not comfortable using it (!).

    • Alice says:

      I’m not R2R but I’m just going to put this here. I personally use the desktop wallet in “light wallet” mode. Also your computer or exchange doesn’t actually store iota. Your iota is forever in the tangle, and your seed address is your little pin point in that tangled web. As long as you save your seed address somewhere, you can access it from anywhere. For IOTA you can also print out your seed address and keep it in paper form, safe from hackers but not safe from fires.

      It’s important to know that your seed address is different from your “receiving address” in iota, and receiving addresses should be changed every time you receive iota for security purpose. I’m not sure if you can see your actual seed address on your exchange but you can easily create a new one.

      Personally, my seed address is saved in KeePass, which keeps all my passwords encrypted. My actual encrypted keepass file is in my dropbox folder, which means it’s always backed up online if something happens to my computer.

      In the past I lost 5 bitcoins to a really bad hard drive crash that couldn’t be recovered. So I ensure my important data is always available in two locations. I also have a ledger nano, that could be one of your two locations but last time I checked it didn’t’ support iota yet. It might soon.

      • Thanks for sharing, Alice. The seed addresses and the fact that IOTA needs you to change everytime is a bit confusing to me. I am still reading up on it before I can safely pull it and store it somewhere safe. Thanks for sharing the info. Appreciate it.

        R2R

  3. Alice says:

    It’s a bit crazy and frustrating to think that something with zero fundamentals can gain so much value while real companies break their necks trying to create great products that people actually use, yet their value is much less.

    I’m in a few cryptos (as you saw in a previous comment of mine) but it’s because I believe in the technology behind it and not so much because of the coins. It looks like you got in just in time. The price went a bit crazy and it became the #4 coin based on marketcap. Now the harder part for all of us is to try staying responsible and not chase performance and try limiting the gold rush feeling by being logical.

    • Hi Alice,
      The cryptoasset space is something that everyone is scratching their heads about. I wouldnt really say that there are no fundamentals — there is definitely value in what the cryptospace offers. The surge coming from this new platform and paradigm is something that most incumbents cannot take lightly — and definitely a lot of philosophical questions that go with it.

      From Day-1 I’ve always questioned on how much blockchains can scale and even in this nascent stage, they are struggling with scalability. This is because they are using a brute-force method where all the data is available and validated by majority of the nodes in the network…and that definitely hits some roadblocks. IOTA has a neat approach with the DAGs and I can see a lot more usable apps built and successfully scaled on this platform, which is why I bought in.

      The recent rush has been spectacular and the amount of funds moving in are insane. Yesterday, there was more volume flowing into IOTA than ETH and BCH! Its really catching the attention of the masses. I also saw a poll somewhere that IOTA will be the big growth story of 2018 ahead of other coins. I sure got in a good time, but wish I had bought more 🙂

      Thanks for stopping by and the comments.

      R2R

    • Hi Dan,
      IOTA is available to trade on Bitfinex and Binance for now — maybe some other exchanges too. There have been some hints looking at the code that its coming to Bittrex soon as well.

      R2R

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