BBC Brasil: What is the cripto that has valued 800% in a month – and is not bitcoin

bbc brasil

Original post: http://www.bbc.com/portuguese/geral-42321727
all credits to: BBC Brasil

– NOTE THIS ISN´T THE BEST PORTUGUESE TRANSLACTION –

Ilustração usando uma moeda do IOTA

 

The flashy growth of bitcoin in recent weeks has not been enough to quell the doubts generated by a market that offers gigantic returns but is not subject to regulatory controls.

But despite all these issues, a much lesser known cryptomaniac has presented a very expressive appreciation.

We are talking about IOTA, an investment product that describes itself as the “backbone” of the Internet of Things (IoT) economy, the term used to define web communication between objects and equipment.

The value of IOTA has increased 774% since early November so far. That made its market capitalization as high as $ 12 billion, allowing it to join the list of the world’s top five virtual currencies (bitcoin and bitcoin cash, eterter, IOTA and ripple) according to MarketWatch.

This was after reports were published that several high profile technology companies, including Microsoft, were coordinating efforts with the German NGO that monitors IOTA to create a secure data market so they are not wasted.

IOTA co-founder and CEO David Sonstebo told CNBC that “99% of this valuable information is lost in the void.”

“IOTA encourages the idea of ​​sharing data through its free transactions to pay a fee and assuring free information integrity,” he said.

According to the website Cryptocurrencychart.com, on December 6 IOTA was worth $ 4.5 per unit, while the bitcoin was $ 12,962.

Bitcoin
The controversial growth
Unlike conventional currencies, crypto-coins are digital representations of a value and are not issued by a central bank or credit institution. They are virtual currencies.

The most popular is even bitcoin, which had a growth of 1,200% in its value in the last year.

Virtual currencies are not regulated by governments, major banks or investment funds, but by private investors.

Bitcoin is basically a digital file that exists online and functions as an alternative currency. It is not printed by governments or traditional banks, but created by a complex computational process known as “mining.”

All currencies and all transactions made with crypto-coins are recorded in a global index – known as “blockchain,” a kind of decentralized database that uses encryption to record transactions.

In this way, files can not be copied or spoofed, and transactions can not be traced

The main ways to buy crypto coins are with “real” money, by selling paid products or services in bitcoins or by new companies that make their own virtual currencies.

IOTA differs from other crypto-coins by not using blockchain technology, but rather a tangle call, which promises to be faster and does not generate a fee charge.

Ilustração de Criptomoedas

BUBBLE

Many analysts, including Joseph Stiglitz, Nobel laureate, believe bitcoin will be the largest financial bubble in history. “Why do people want bitcoins? Why do people want an alternative currency? The real reason people want an alternative currency is to engage in illicit activities: money laundering, tax evasion, “Stiglitz said. Beyond the warnings made by economists, governments and central banks, investors are still betting on the growth of the crypto-currency market, although the question remains whether and when that bubble will burst.