I think we were all impressed by IOTA’s recent bull run. This obscure cryptocurrency went from zero to crypto-hero after forming some strategic partnerships. Its most recent price increase put it among the top five cryptocurrencies, displacing favorites like Bitcoin Gold, Litecoin, and Dash.
This was only to be expected
IOTA, its team, and its holders should be extremely excited about its recent performance. It is terribly impressive. The cause of this recent price action is also worth being very proud of: IOTA is teaming up with a number of huge tech firms, including Samsung and Microsoft. Whenever collaborators as large as those are announced, you usually can expect good things from a project.
While this is all exciting, I would wager that it is not the last time we see a cryptocurrency explode in value because of strategic partnerships. In fact, that’s one of the greatest things about cryptocurrency: It may be young, but it is far from immature.
What I mean to say is, no one in cryptocurrency was surprised by an asset exploding, but some may have been surprised that it was IOTA. Cryptocurrency enthusiasts have almost become desensitized to huge runs like this one. We have seen ETH and BTC gain and lose up to 20% of their value in a matter of hours. We regularly see coins no one knew about explode onto the scene in spectacular fashion. Hell, we’ve even seen virtual cats cripple an entire network.
However, this desensitized crypto-self can still get excited – and crushed, if the market ticks downward. A five dollar MIOTA was surprising, but a 90% gain in crypto isn’t unheard of; in fact, some expect it.
It is expected because so many believe these assets to be undervalued, and heavily so. I tend to agree. Let’s take a look at Bitcoin, for example. This crypto has the promise to bank the unbanked and be peer-to-peer digital cash. Current usage – while hard to truly know – probably puts the network somewhere around 30 million users and counting. That is nothing compared to the billions of unbanked people around the world. Even if Bitcoin expanded to cover 1 billion people, its price growth would likely be commensurate.
I do not pretend to be an expert in markets, nor would I suggest anyone see me as one, but the general sentiment in the cryptocurrency community is that there is still significant growth to come.
So while few may have seen this coming, most expect some market players to explode in value like IOTA has done.