Bitcoin (BTC) is a leading cryptocurrency globally when it comes to market capitalization and popularity. Powered by blockchain technology, it brought about the rise of other cryptocurrencies on the market. On the other side is IOTA, a new Internet of Things (IoT) cryptocurrency created to compete with Bitcoin. Different technology powers this newer currency.
Between BTC and IOTA, which one should you invest in and why? If you're wondering, this article has the answers you need. As you read, find out the similarities and differences between the two cryptocurrencies and which one will be a better investment choice.
Overview Of BTC And IOTA
Bitcoin (BTC) is the best-known cryptocurrency out of the many that exist. Its blockchain technology is what encouraged other crypto assets to emerge, and so it is known that most currencies use the technology. IOTA, however, is a new cryptocurrency that is different from Bitcoin. Instead of using the popular blockchain technology, IOTA came up with its own called Tangle Technology.
Bitcoin Versus IOTA Cryptocurrency
Let’s compare the two currencies to see which one is a better choice.
Transaction Fees
Cryptocurrency investors usually consider transaction fees before they decide to invest in any asset. When you buy and sell Bitcoin, you’re subject to a transaction fee of 0.001 BTC. This fee is given to the miner. There are even minor transaction fees for Bitcoin transactions on Robinhood, which is famous for free transactions. That trend will probably continue on Webull and other new online investment exchanges. On the other hand, IOTA only offers free transactions.
Cryptography
Another aspect to consider is the cryptography of the two currencies. Bitcoin is the most popular cryptocurrency and the first on the list when it comes to market capitalization. Hackers can gain a lot just by stealing a few BTCs. Thus, Bitcoin uses secure methods like a P2P network and private key cryptography to prevent theft.
Since IOTA does not use blockchain but Tangle instead, its cryptography and security are different from Bitcoin. Tangle works only with quantum-resistant cryptographic algorithms. This will reduce the chances of a brute attack on your IOTA coins drastically.
Micropayments
When Bitcoin was first released, one of the reasons it became increasingly popular was the low transaction fees. But now that it's considered the king of all currencies, the transaction fees are very high, discouraging many people from investing in Bitcoin.
As for IOTA, there are no transaction fees, so there is no limit on the minimum transaction. Even if you're dealing with just one IOTA, you can exchange it at no cost at all.
Adaptation
While Bitcoin is easier to find than IOTA, the latter is easy to incorporate. Bitcoin makes up almost eighty percent of the cryptocurrency market, so you can find BTC on practically any exchange around you. But it’s hard for it to adapt to exchange systems.
On the other hand, IOTA's technology, Tangle, is easy to incorporate with other programming languages, technology-wise. This is different from how blockchain can adapt. All companies have to rearrange their entire systems before they can support BTC.
Wrap Up On BTC vs IOTA Cryptocurrencies
So far, investors are still getting the impression that Bitcoin and its blockchain technology is better than IOTA and Tangle. This is because the latter is limited by popularity, real-world implementation, and the difficulty of finding quantum computers.
Even with this, as technology begins to advance, IOTA might end up overshadowing blockchain. If you want to jump on IOTA before it blows up, you can convert BTC to IOTA and start trading.
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