Token Price

This article is a translation of the German IOTA Beginner’s Guide by Schmucklos.

Current Token Price

  • iotaIOTA$2.071.79%

Professional price predictions

Here you can find analyses regarding the potential future value of the IOTA token. Please always keep in mind that these analyses are hypothetical and use a lot of assumptions. IOTA still is a high risk investment and the value of the token could also drop to a value of 0.

Fundstrat reports

FSInsight is a market-leading, independent research firm. Its focus lies on U.S. macro market strategy and they have leveraged those fundamental insights to become leading pioneers of digital assets and blockchain research.

Fundstrat report 2020

Fundstrat report 2021

Why should the token price increase?

IOTA is creating a completely new ecosystem in which various services can be offered or purchased autonomously. Therefore, the following points, among others, will cause an increase in the price of the tokens:

1) The price of all cryptocurrencies (except stablecoins) is not determined by states as with fiat-money, but only by supply and demand. The number of IOTA tokens is limited and all of them are in circulation so every use case will reduce the supply of tokens and thus increase the price. The increasing adoption in the industry and IoT will generate an ever increasing demand and the capital needed to keep future applications running will be huge. Below are a few examples that could cause a shortage in IOTA tokens:

  • No inflation: The number of tokens is limited and all IOTA tokens are already in circulation.
  • Mana: Every node that wants to participate in the network needs the IOTA token. This is because only the token generates Mana and without Mana only very limited participation in the network is possible. Should the network be close to its processing capabilities, someone who wants to make many transactions in a short time will need Mana for the executing node to be favored over other transactions (possibly spam). This can best be compared to buying a higher bandwidth from an Internet provider.
  • International exchange medium: If you want to implement cross-country and cross-company processes, trade or logistics between machines these transactions can take place without much delay and without having to agree on a trading currency etc. The only requirement is that machines have direct access to a stock exchange either directly or via a financial service provider to make conversions. This could be, for example, the house bank of a company, which keeps the fiat accounts anyway.
  • Anyone who supplies data (sensors, etc.) and offers them on marketplaces can be paid with IOTA tokens.
  • The targeted protocol standard for M2M payments in industry 4.0 is adopted.
  • Machines or devices pay each other autonomously for services (machine economy).
  • Smart Mobility: Sharing concepts, compound tickets.
  • Car wallets enable a variety of autonomous services, such as Jaguar Land Rover.
  • Data marketplaces: Purchase or sale of data using IOTA tokens, for example Industry Marketplace 4.0 with eCl@ss,Telco Asset Marketplace, Maschinendatenmarktplatz.NRW or the Senseering – MyDataEconomy platform.
  • Feeless micropayments are only possible with the IOTA token. There is currently no comparable technology (sharing, streaming, payment by data points).
  • IOTA token as currency in games: See Gaming.
  • Smart Cities: Here, all services could be paid for with IOTA tokens.
  • Firefly Wallet gets the function of a “messenger with payment function”. The user should be able to handle cryptocurrencies as easily as when sending text messages or scanning a QR code.
  • Firefly Wallet will allow third party apps in addition to the easier and faster buying/selling of MIOTA. It will also allow exchange transactions of EUR / MIOTA in real time (module with bank license and direct bank account). A bank that would offer this real-time service would always have to keep a large stock of IOTA tokens.
  • Regular IOTA tokens as carriers for digital assets: These tokens can display real world assets based on IOTA (on Top) in a tamper-proof way. They could be used, for example, to redeem vouchers or tickets or to regulate ownership (shares, real estate etc.). This is called tokenization.
  • IOTA Smart Contracts: For the original transaction and the initialization request to create an SC at least 2 IOTA tokens are needed to create a SC. SCs will greatly expand the use of the IOTA token because IOTA tokens are held and moved by the SC. IOTA tokens are also used when a particular SC requests them to pay SC processing fees (rewards).
  • A lot of new ideas and business areas will emerge in the new IOTA ecosystem and use the IOTA token for value transfers.

2) Speculation: When the first real applications are running, IOTA will be in the public’s and investors’ focus. IOTA does not yet have any metrics for the current price. With IOTA it is only about metrics as soon as the real economy uses the protocol and also transfers monetary values via it. Then serious investors or speculators can think about how the ecosystem will grow or shrink and estimate the likely price based on these calculations. Ultimately, pure fantasy and the greed of new investors will drive the price (see Tesla).

3) Value transfer (value storage): Why should the IOTA token not be able to establish itself as an alternative pure currency? With increasing use cases and growing acceptance from industry or implementation as a payment function in smart cities, stores, games, etc. this is more likely than many think.

Original source

Last Updated on 10. April 2021