Bitcoins are valuable but investors are getting tired of them. Sure, the coins are worth thousands of dollars now, but how much will they be worth a decade or two from now? Does the bitcoin have what it takes to survive and retain its value in the long run? These are some of the questions that have had investors supplementing their bitcoins by investing in altcoins such as Ethereum and IOTA. This article delves a little deeper into these altcoins, discusses the benefits and drawbacks of each and ultimately gives a verdict of which coin you should go for as an investor who wants to get significant returns years down the line. So, first things first, we’ll go right into the basics of IOTA and Ethereum.
IOTA and Ethereum
Ethereum doesn’t need much introduction in the altcoin seen. Valued at around $400 apiece, the altcoin is the second most widely used coin in today’s market after Bitcoin. Ethereum is basically a blockchain-based coin that allows users to make peer-to-peer smart contracts. That means that anyone with Ethereum can make binding digital contracts with any other owner using blockchain technology. The ability of this coin to make contracts, in addition to its decentralized applications making capabilities, makes Ethereum invaluable as far as technology is concerned. It certainly doesn’t look like the coin will become obsolete any time soon.
IOTA is a new cutting-edge coin that has joined the altcoin market with a twist of its own. Unlike Ethereum, it does not use blockchain technology but instead relies on it to conduct business. Think of it like this. There are two parties, each wanting a product from the other. Both of these parties own independent and complete blockchain. IOTA, in this case, would work as a middleman, facilitating the exchange of commodities via the blockchain. It would ensure each party retains its digital integrity. IOTA would facilitate this without charging either party a fee for the transaction. In an ideal situation, IOTA would enable corporations to carry out transactions without fees, provided the firms owned their own blockchain.
IOTA vs. Ethereum
In the now, Ethereum is a better contender in the market because it has been around for longer and investors trust it. That does not mean that is the stronger of the two cryptocurrencies.
Ethereum is a safe digital currency. Investors have seen it in action for years, and the coin itself underwent massive testing before it was released into the market. It allows smart contracting and the making of dapps, and the fact that it facilitates a multitude of projects shows that it is here to stay. Now let’s stack up that technology against IOTA.
IOTA is new, sure. Because of that, it has fewer competitors, a bonus for early investors. It attracts no transactional costs unlike the Bitcoin and other altcoins. That’s about everything that’s positive about IOTA. On the other hand, IOTA is a pre-mined currency showing potential issues with adoption and pricing, can’t handle complex transactions and relies on an almost unrealistic assumption that corporations will agree to share their blockchain technology with each other to simply make agreements.
In short, IOTA might be a viable digital currency in future, but for now, Ethereum holds the better cards.