![]() ![]() Thanks for your response! I fully agree with what IOTA/the tangle is.ĭespite not having a central authority, the possibility of such cannot be neglected. I would think you can hedge a transaction with a third party provider (bank) which takes over the fluctuation risk and you pay a premium for it or you could introduce a stable coin on top of the tangle to mitigate the fluctuation risk. So how could you address volatility in Iota transactions in a machine economy where value is transferred between organizations (not within). Just have a look at the Quantity Theory of Money (if you not already know it), where in a centralized world a central bank can interfere with the money supply and which of course is missing in a decentralized world with all tokens already in circulation and thus, demand and supply solely depending on the market. ![]() Regarding volatility: having now retail investors trying to make a profit and corporates buying Iota to enable their use case, I guess volatility is always there within decentralized cryptos. So why would you buy Iota tokens then? In order to participate in the infrastructure and guarantee a high TPS you would need Iota tokens which therefore drives demand for the token. Given the political risks which we have experienced in the past, also in western democracies, I see quite a value proposition in a decentralized network. By being decentralized everyone can participate without having the risk of interference by a central authority. Regarding value proposition: I would rather see the Iota network as a utility providing the infrastructure for the machine economy. Let me address the value proposition first and then come the volatility. I also thought about the value approach quite a bit. I'm no expert, these are market mechanisms, personally I want IOTA to rise in value and, for example, if I want to buy a kitchen on the IOTA network, I would look to use a stable coin built on a layer 2 environment, denominated in my country's currency, so that I don't get any price swings between buying and installing the kitchen. lower velocity and maybe less wild price swings but you're right that if there is a supply/demand issue then the markets will be more volatile, more liquidity will help this. The new changes to IOTA will incentivise people to hold so that they have access mana, this may mean a slower movement of money, ie. So the real answer is no currency is stable. Actually the dollar has recently been falling in value too because they have been printing money, if you trade internationally you'd notice it but if you live within the system, in this case America, then you're all in the same boat so the value seems more stable. If you mean stable like a fiat currency, well it's not likely to happen any time soon, gold is 10 trillion $ and even that is not stable. Posts that are not related to IOTA can be made elsewhere, e.g. This includes, but is not limited to, no: personal attacks, threats of violence, slurs, trolling, profanity, posting people's private information (doxxing). No buying/selling of iotas on Reddit (only trust the listed market exchanges) scammers may try to scam you! Report any scammers to mods here. Related Subreddits: r/IOTA / r/IOTAsupport / r/iotaTipBot / r/IOTAmemes / r/CryptoCurrency / r/CryptoCurrencies Rulesįor discussion of non-market-related IOTA topics, visit r/IOTA. Supply & Units: i./lsq4610.jpeg / i./Y6zOB5G.jpg IEN Application: goo.gl/forms/OrrXmhu1rKfy2dgp2 InformationĮcosystem Fund: /iota-ecosystem-fund-2-millionĪMA: r/Iota/comments/6hugtq/ask_us_anything IOTA is focused on being useful for the emerging machine-to-machine (m2m) economy of the Internet-of-Things (IoT), data integrity, micro-/nano- payments, and other applications where a scalable decentralized system is warranted. Further, unlike blockchain architecture, IOTA has no separation between users and validators (miners / stakers) rather, validation is an intrinsic property of using the ledger, thus avoiding centralization. Scaling limitations have been removed, since throughput grows in conjunction with activity the more activity, the more transactions can be processed & the faster the network. IOTA uniquely offers zero-fee transactions & no fixed limit on how many transactions can be confirmed per second. ![]() The IOTA Tangle is a quantum-resistant Directed Acyclic Graph (DAG), whose digital currency ' iota' has a fixed money supply with zero inflationary cost. IOTA is an open-source distributed ledger protocol launched in 2015 that goes 'beyond blockchain' through its core invention of the blockless ‘Tangle’. For discussion of non-market-related IOTA topics, visit r/IOTA Please focus discussion on IOTA investment, trading, and market-related activity. ![]()
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