IOTA (MIOTA) How Leadership is Holding Back the Technology
When looking into investing into anything my focus is not on the actual product I am investing but rather the leadership behind it. I belive at the core people are the only thing that leads to success or failure of a product. While researching IOTA (MIOTA) the tech behind it had me intrigued, but the leadership is causing me to worry. For starters let’s look at the technology:
What makes IOTA special
The three biggest issues with cryptocurrencies are:
- Transaction fees
- Speed of transactions
IOTA seems to have the technology to take huge step in solving all three of these issues. The “Tangle” technology appears to be a straight upgrade to its predecessor of “Blockchain”. The “Tangle” technology has already been tech proofed and proved it validity in the marketplace. On paper IOTA outshine all the current cryptocurrencies, it can be the next evolution to in the market.
IOTA’s short term issues
Although IOTA has a lot of promising tech, there are a few glaring issues. The first being the lack of a strong “wallet”. Digital wallets are crucial for any cryptocurrencies as it provides a way to store, receive, and send the currency. The whole point of a currency is to obtain and spend it, without the ability to do so why bother?
However the good news is IOTA is actively taking steps to produce a better virtual wallet and it seems well on its way to a speedy development. Currently there are promises for a secure virtual wallet to be released early January.
Another issue that IOTA is facing is its adoption. Currently there are no business expecting IOTA as a form of payment, there is no way to exchange IOTA directly for another product. This is not a new issue for any cryptocurrencies, all rising cryptocurrencies faced this issue. This will be fixed with time, as the market grows and continues to go mainstream IOTA just like Bitcoin will be able to be spent.
Both of these issues are well on there way to being resolved, so in the short term they are keeping the price down but in the long term if resolve provide no real disadvantages.
IOTA’s long term issues
Treatment of the open source community
One of the wonders of the crypto community is their respect and dedication to transparency for the user’s. The developers of most cryptocurrencies offer the source code of their product. This allows other developers to create tools that can interact with the product as well as help boost the whole industry forward by sharing any and all advances made toward the technology. IOTA on the other hand is doing the opposite.
IOTA have released their source code, however left in on purpose fatal bugs to the code. They have stated the reason for doing so is to stop other rising developers from stealing their code. This is the equivalent of releasing a recipe with a missing ingredient, and because of this missing ingredient it poisons everyone who uses it.
That goes against the whole point of the open source community, in fact it actually disrupts and creates a lack of trust within the community. It would have been better to just not release the source code at all.
Mistrust of feedback and criticism
The founders of IOTA are extremely passionate about the project. Its capabilities along with its development team have tons of promise. However they defend the product to the point of hostility. Often when positive criticism or feedback is offered it is met with hostility. The core founders: David Sønstebø, Sergey Ivancheglo, and Dominik Schiener have gotten into many “twitter wars” over criticism towards their product. While their passion is outstanding the hostility towards outside feedback worries me as the following they have created follows the same suit. The community is beginning to polarize, either your with IOTA or you’re against it.
What these means in terms of investing
In conclusion my biggest worry is the leadership. The technology seems to be revolutionary. However I am concerned with the culture the leadership has created and how it will affect its adoption. Sometimes a mob mentality towards a product can be highly profitable but it also might stop mass adoption.