Navigating the crypto markets can be challenging, considering the thousands of different coins and tokens at your disposal. Almost everyone is familiar with Bitcoin and Ethereum. But there are many coins that provide great utility out there that you might have overlooked.
One of these networks that provide utility and innovation is IOTA and its MIOTA token. In this article, we will provide you with a comparison of BTC to IOTA. We also point out their differences and similarities and go over their fundamentals.
Overview of BTC
Bitcoin was the first cryptocurrency to see the light of day that set the new monetary paradigm. It introduced us to the idea that currencies weren’t obligated to rely on governments or financial institutions for their issuance. It provided the first peer-to-peer payment network. Transactions happened thanks to a protocol instead of a trusted third party like a bank.
The project uses the proof-of-work algorithm that allows miners to confirm transactions and create new coins. Worth noting is that only 21 million coins can ever be created, as this feature is hard-coded in its protocol.
Some of the major advantages of the blockchain technology on which it relies are decentralization, immutability, and security.
In 2021, Bitcoin experienced its largest bull market ever, and its price reached as high as $69,000 per coin. At that moment, its entire market cap was valued at over $1 trillion. However, since the beginning of 2022, Bitcoin has been in a bear market that has continuously pushed prices downwards. At the moment of writing, BTC trades at around $20,000, a retracement of over 75% from its November 2021 all-time high.
Overview of IOTA
IOTA relies on a decentralized ledger. However, unlike Bitcoin and the majority of the cryptocurrencies available on the market, it’s not a blockchain. Instead, it runs on a patented technology called Tangle.
The main goal of the Tangle technology is to bring greater scalability and provide a platform for the expansion of the Internet of Things (IoT). Since there are no miners or validators, there are no fees on IOTA, which allows IoT devices to communicate with the network and with each other at near-zero costs.
Released in 2017, right before the peak of the bull market of that period, the MIOTA token reached an all-time high price of $5.36 in December that same year. The ensuing bear market pushed prices as low as $0.12. However, in 2021, IOTA reached $2.5 proving it still had potential. The current bearish sentiment in the markets has caused the price to crash to around $0.3 at the time of writing.
BTC vs IOTA: Key Differences
The main differences between Bitcoin and IOTA are the following:
- Bitcoin has a maximum supply of 21 million coins, which has not been reached yet, whereas all MIOTA tokens that can ever be created are already in circulation — 2.78 billion.
- Bitcoin uses proof-of-work to confirm transactions, while IOTA uses Directed Acyclic Graphs (DAGs).
- Bitcoin’s network can become congested when there are too many users. IOTA’s network scales with size and retains its speed regardless of the number of users or devices transacting on it.
- Bitcoin remains a solid store of value and provides great utility as a digital savings account. IOTA is a purpose-built network that allows IoT devices to seamlessly communicate and record their transactions in an immutable manner.
- While IOTA provides better scalability and utility, Bitcoin remains a blue-chip cryptocurrency that has gained the trust of millions of users worldwide.
You can purchase both BTC and MIOTA on various exchanges including Godex.io and take advantage of their volatility as an investment vehicle.
Summary
Bitcoin is the first cryptocurrency and provides a solid store of value. Its limited quantity contributes to its scarcity, which ensures that its price will continue to rise in the long term (regardless of short-term volatility). Conversely, IOTA provides a scalable network for IoT devices and sets itself as a lightweight, future-proof platform for immutable transactions.
