Must-watch: 500 Billion Reasons why IOTA

The reason IOTA remains even if Crypto is heavily regulated.

The reason IOTA remains even if Crypto is heavily regulated.


Against the background that the CEO of Facebook’s wallet company “Calibra” David Marcus appeared before the US Congress and had to answer critical remarks, the question of the Raison d’être of cryptocurrencies arises once again.

Cryptocurrencies have recently reached another peak in terms of valuation and the associated media presence, yet neither the regulatory hurdle in western financially strong countries and anywhere else has been overcome, nor is it clear to what extent these countries allow a future for cryptocurrencies at all.

The discussion between congressman Mr. San Nicolas and David Marcus made it clear why governments have made few compromises so far.

Facebook assumes a number of users in the billions. A not insignificant circumstance in this debate.
Assuming that each user deposits an average of $100 in his Calibra wallet, a total of at least 100 billion US Dollars is drawn from the US economy, which now competes with the Dollar as a payment medium.

The situation could be even more dramatic if the 90 million companies that offer their services on Facebook were to deposit parts of their assets in Calibra in order to remain liquid in day-to-day business.
That would mean that potential monetary value in the trillions would counter the Dollar and greatly affect the economy.
This problem affects every country.
A possible consequence can be that Facebook achieves an insanely high market power so that even the state is no longer a regulatory counterweight to what it was created for.

This is also true for the concerns expressed in the discussion against cryptocurrencies outside of Facebook.

From the point of view of the state, a currency substitute or a counterweight to the recognized and regulated currency of a state is the Achilles heel of financial and moral sovereignty.

Central banks, in the USA the Federal Reserve and the European Central Bank in Frankfurt have the official mandate to guarantee currency stability.
Of course, during a Facebook Libra hearing, Bitcoin is also in the dock, because as a borderless electronic currency without any regulation, you have to ask what happens to government currencies when Bitcoin et al achieve a mainstream growth that is still considered possible at the moment, and whether or not cryptocurrencies survive the regulatory grid of governments.
The answer to this question is still unknown, but what we know is that it won’t be a clear yes, or a clear no.

So what would happen if the majority of the highest evaluated projects in the Kryptorealm were to be banned from citizen participation by regulations?

The fear of regulation

Cryptoland is not a homogeneous mass of people with the same intentions. Some use crypto for web-based services, many use the technology for research and development of their products, most simply want to invest, and a hard core of early adopters link Bitcoin to their ideology and a free world without the permanent intervention of the state in every human affair.
This ideological part, the crypto-anarcho-liberals, would certainly say that the decentralized nature of a network would prevent state intervention anyway, but it should be clear that the use by the average consumer would thus be largely excluded and also a high valuation of the corresponding currency.

This eternal Damocles sword sits deep in the minds of investors because the fate of regulation can hardly be prevented.
The question that needs to be asked is to what extent this inevitable regulation will change things for Bitcoin and other projects.

The crypto-anarchy liberals are quite right that the Bitcoin network cannot be shut down so easily, but they also know that the ecosystem no longer offers incentives should financial access to the mainstream be prevented.

This topic is no reason for Bitcoin enthusiasts to throw the towel, especially because a handful of congressmen were recognizing Bitcoin as an innovation they’re fond of, the majority of all other crypto-projects, however, still hang on the navel of unregulatedness, because many services or tokens have uncontrolled and disruptive characteristics, which in the medium term do not get any state approval and therefore no secure financing or future.

The network effect and the connected success Bitcoin undoubtedly inherits, is not what 99% of all other projects could ever offer.

So, at this point, it makes sense to find out which characteristics a crypto-project should have in order not to fall into the same category of regulatory anxiety.

And the answer is refreshingly simple: Where no values have yet been sent, and consequently no regulation had to be set up to protect the national currency.

A currency replacement like Bitcoin originally aimed for (which changed to digital gold), and as other projects like e.g. Nano still aim for, are logically a red flag for governments.

The exception

IOTA, the non-profit organization from Berlin, on the other hand, does not aim to be a currency substitute and its application concept goes much beyond than that of any other project.

One can criticize this statement, but it becomes clear when one considers that IOTA is developed with the goal of functioning in the IoT and securing the connected devices, monetizing them and enabling a global data market, not just human to human transactions on the Internet (which it will be, additionally).

This is not remotely a danger to the fiscal sovereign, but a helpful innovation that offers various possibilities that every state tries to strive for anyway.

-Data integrity in a dystopia of the transparent customer established by corporations (such as Facebook)
-Monetarization of unused data that can be very valuable for research and development.
-Interoperability
-A network that, despite many billions of devices, cannot be taken over and hacked by third parties, as it’s relying on the fundamentals of DLT
-No transaction costs
-No Mining
-Microtransactions, with any value.
-An indispensable network for the ongoing industrial revolution.

These unique properties of IOTA’s Tangle vision are diametral to most other projects, and thus, not in a competition but desired by governments.

It’s a technology that is urgently needed at a time when autonomous technologies are making their way into society and hold potential risks for humans and the environment.

So it is no big deal to understand that IOTA will survive a wave of regulation in one piece, with its quest for a safe and functional Internet of Things.

Industry adoption already started

Of course, this will be in the interest of the governments, who will thereby find a secure ground for data protection, innovation, and the future economy, without losing their sovereignty.

Austin, Texas, for example, signed a partnership with IOTA, same as Taipei.
In terms of standardization, the Object Management Group is already in the process to create a standard for the IoT, based on IOTA’s Tangle.
One of the biggest semiconductor producers on the planet, STMicroelectronics, recently made public, that they will integrate an IOTA library in their STM32Cube.
Hundreds of other entities are researching and evaluating the possibilities of the IOTA Tangle. On the list is also Bosch, VW, Fujitsu and dozens of universities.

So in the midst of the recently discussed regulatory hurdles for crypto, IOTA is already at the doorstep to innovate the space, because it’s not even seen as a problem, but as the solution.


The coming update: “coordicide” is on its way to fully decentralize and scale the IOTA tangle. The IoT revolution can start for everyone.

More information on coordicide.IOTA.org

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