In this guide, we will voice our own and market’s opinion on IOTA future while discussing IOTA price forecast for 2020 and beyond.
Please bear in mind that you should take this and any other prediction with a grain of salt since predicting anything is a thankless task, let alone predicting the future of a novel, highly volatile financial asset like MIOTA.
Now, let’s head into it.
Before we delve deep into the Iota price prediction and answer questions if Iota is a good investment or not, why will IOTA succeed or fail or why will IOTA price rise or drop, let’s quickly throw a glance at what is Iota and its to date history.
IOTA was started to provide distributed ledger technology for the machines and internet-of-things (IoT) space where small connected devices regularly share data.
Because these machines and devices are generally specialized to be low power and perform only specific functions IOTA does not use a traditional consensus mechanism like proof-of-work or proof-of-stake nor does it use a blockchain structure. It rather uses a different type of public ledger with a popular moniker “The Tangle”.
The goal of the project is to allow these devices to conduct micropayment transactions between themselves and potentially to securely transfer data. At the core of the project is what is referred to as the ‘Tangle,’ a directed acyclic graph (DAG) that acts as the public ledger system. The team believes that this structure will allow for feeless payments, lower compute cost, and the ability to connect to billions of devices.
The efficiency of this system also grows as the number of participants increases as transactions will be processed at a faster rate. One of the project’s more recent releases was a data marketplace that allows for storing and selling data streams while masking the source of the data.
However, one thing to remember when it comes to IOTA – it is still a completely centralized endeavor with no concrete date for removal of their coordinator.
This was blatantly clear in February 2020 when their core wallet – Trinity got hacked and user funds stolen. In order to investigate the issue, IOTA paused the whole network by taking the Coordinator offline for couple of days.
IOTA Roadmap for 2020
The Foundation already has plans in place to make community engagement on development, research and adoption a lot more interactive and open in the new year, starting almost immediately.
IOTA Roadmap is very detailed and transparent and you can scrutinize their plans on this link.
In short, Coordicide will be the buzz word of the year for IOTA community and the last update we had on this project was the creation of a testnet without Coo to prove that the network can work without the Coordinator. Thus we arrived at CLIRI which is a fork of IRI (IOTA Reference Implementation) in which all trace of the Coordinator was removed. CLIRI is a test therefore it is not ready to be tested in the main network. Anyone who wants to research the CLIRI function can do so in the following GitHub repository https://github.com/iotaledger/cliri
CaptainAltcoin’s IOTA Price Prediction for 2020
IOTA, as the rest of the market, is tied at the hip of bitcoin’s price action. If bitcoin embarks on another bull run, IOTA can hope for one as well.
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With the latest development in the world and the impending worldwide economic crash, bitcoin failed to decouple itself from traditional markets and lost 40% in one day.
The rest of the market slumped in an even harsher fashion, losing 50%+ in one day. Since this is a black swan event, an unpredictable event that is beyond what is normally expected of a situation and has potentially severe consequences, there is no one who can legitimately claim that he or his algorithm can predict short-term price developments for anything, let alone cryptocurrencies.
Many experts agree that it will get worse before it gets better, both in terms of human health and economic situation.
We can only speak in very general terms and make a forecast that cryptocurrencies will probably drop below even the 2018 lows (many of the altcoins will most probably dip to unprecedented depths and record new all time lows).
Once this tough situation passes, a crazy bull run is what we all hope for and probability for such development is pretty high.
IOTA fundamentals in 2020
- IOTA listened to critics and will finally deliver. A good example is the short-term switch to binary, and switch to UTXO.
- CFB seems to have blocked several progress over the last years, this is now solved.
- Part of the Chrysalis update will be rolled out this year which will bring significant improvements to the mainnet.
- Qubic is finally coming to a point where community can start testing. Also Qubic will benefit from the crysalis updates.
- Some of these updates will also make sharding easier to implement (although this is something post-coordicide).
- Meanwhile GoShimmer/Bee team continues building the coordinatorless network of which the first testnets are to be expected this year.
- Coordicide itself will probably happen next year.
- We might get some additional nice features brought by the research teams such as colored coins.
The feeless and scalable approach of IOTA is still unique in the crypto space. And will ultimately be rewarded with IOTA being the first-class choice as open and standardized DLT in future IoT applications.
So in a year from now IOTA may have solved every open big issue. If IOTA gets standardized by OMG, and their current partnerships will show their first real results, we can expect IOTA to grow exponentially.
The main currency in cryptocurrency markets is Bitcoin and given this, altcoins tend to fuel Bitcoin runs and Bitcoin tends to do the same in return. Given this relationship, Bitcoin price movements (or lack thereof) tend to effect altcoin prices.
When Bitcoin goes up swiftly, it will likely:
- Suppress or depress altcoins as money flows into Bitcoin;
- Or, take altcoins along for the ride
In cases when Bitcoin plunges, it will likely:
- Depress altcoins as money flows into fiat;
- Or, cause altcoins to boom as money flows into them, but this is rarely the case.
When Bitcoin moves sideways, it will likely:
- Cause altcoins to mimic that as traders wait for a clear sign on the direction of the market;
- Or, cause altcoins to flourish as traders look for returns in altcoins and try to get favorable trades in terms of BTC pairs.
To summarize, Bitcoin is the focal point of the crypto market in many ways, and with BTC trading pairs on every exchange, the gravity of Bitcoin is hard to evade.
IOTA-BTC Price Correlation
The vast majority of trading that occurs in the crypto markets are between BTC and altcoin trading pairs. Since most altcoins do not pair with fiat currencies (and only a few are paired with stable coins like USTD), Bitcoin is the next best option. Therefore, when Bitcoin is stable, it forms as the ideal base currency for buying altcoins (which is why altcoins tend to do well when Bitcoin goes sideways).
Correlation is measured on a scale from -1 to 1. Values above 0 shows the degree to which altcoin is moving in the same direction as BTC prices (either up or down in tandem), and values below 0 shows the degree to which altcoin moves in the opposite direction of BTC prices (so when BTC goes down, altcoin goes up, or vice versa). Values around 0 shows that when BTC price moves, altcoins stays steady, or alternatively that when altcoin moves up or down that the BTC price is staying steady.
Based on the correlation analysis, BTC and IOTA have a strong positive relationship. The correlation coefficient of their prices is 0.62, which was estimated based on the previous 100-days’ price dynamics of both coins. Source – coinpredictor.io
The majority of projects will fail — some startups are created just to gather funds and disappear, some would not handle the competition, but most are just ideas that look good on paper, but in reality, are useless for the market.
Vitalik Buterin, co-founder of Ethereum said:
“There are some good ideas, there are a lot of very bad ideas, and there are a lot of very, very bad ideas, and quite a few scams as well”
IOTA (MIOTA) Future Outlook
As a result, over 95% of successful ICOs and cryptocurrency projects will fail and their investors will lose money. The other 5% of projects will become the new Apple, Google or Alibaba in the cryptoindustry. Will IOTA be among those 5%?
Highly likely it will.
Future of this world is data.And data is IOTA’s main target.IOTA targets IOT(Internet of Things). IOTA has even started data marketplace alongwith the partnership of Microsoft,Fujitsu, Bosch etc. You can check it here – The IOTA Data Marketplace.
But not all is bed of roses with IOTA. Tangle and IOTA approach to DLT is absolute cutting edge and highly experimental.
The team is, at times, pretty mullish in their decisions, like the one to use a balanced Ternarywhich is a numeral system that has 3 digits,-1, 0 and 1. Iota was made to be used with existing hardware, But all existing Hardware now is completely binary. This means that all of iotas internal ternary notation has to be encapsulated in binary, This will result in increased storage and computational overhead. Iota cannot be successfully implemented into the present hardware and even if it is it will cause a significant wastage of both storage and computation power.
Iota violates cryptography’s best practices i.e Don’t Roll Your Own Cryptoand this has resulted in a lot of vulnerabilities in the system and a team led by Neha Narula found many vulnerabilities in iota’s hash function curl and the one of iota’s co-founder (Sergey Ivancheglo) claimedthat they had deliberately added the flaws in the curl hash function as a ‘Copy Protection’. All of this summed up means one thing: IOTA might live through couple of orchestrated and, for a regular trader, completely unpredictable pumps but the majority of time will be murky sideways trading with small volume and no significant interest from the market.
Market prediction for IOTA – MIOTA Price 2020
With the market being completely unpredictable, forecasting the cryptocurrency price is really more of a gamble and luck rather than a data driven guesstimate.
Let’s throw a glance at the eminent publications and personalities, and their predictions regarding the IOTA price, which will give us another point of view to consider:
Walletinvestor is a popular website that does technical analysis-based price predictions of various cryptocurrencies and traditionally has a skeptical outlook for most coins. According to them, IOTA is expected to drop heavily to $0.05 per token in one year.
Trading beasts display that IOTA can climb to around $0.75 within a year which means it will essentially grow 2.5x in value in the next year.
Cryptoground predicts that IOTA might eclipse the current level by almost 3x and reach $0.85 by the end of 2020. They even added their version of IOTA price prediction 2024, where they stated that IOTA might reach $5.18 by 2024, a 20x increase to the current price.
Digitalcoinprice gave a neutral prediction saying that by 2020 end, IOTA might be worth two times more than now – around $0.5 per token.