We all remember the news that Robert Bosch Venture Capital made an investment in IOTA token. They purchased a “significant amount of IOTA tokens”. The token price spiked significantly on the markets.
So why did RBVC bought these tokens? This was their answer:
“Bosch is one of the pioneers actively driving the adoption of distributed ledger technology in the automotive and Internet of Things (IoT) industry. The investment in IOTA’s token, the first ever token investment of RBVC, will help us working closely with the IOTA Foundation to explore the industrialization of this exciting technology.”
So far so good. Now my question: Why would an multi billion dollar company invest in a crypto token?
Number one reason for a company to make an investment is to make profit in the long run. It’s not charity or anything else. A company has to make a profit to survive. So they expect the value to rise. But why would the value rise?
The price of anything will only rise if the demand is higher than the supply. The demand will rise when this “thing” seems to be needed. We know that the supply of the IOTA token is fixed. So no change on the supply side. My expectation is that the demand will rise over time. This demand will come from the industry. Why? Because profit! I will explain it.
The machine 2 machine economy is being developed by the industry. Only the industry (small group of people) knows the true value of machine 2 machine economy. These machines will create value and slowly take over a big part of the current world economy. These machines will use IOTA tokens and that will be the biggest reason why the demand will rise as never before. Is this the only reason that the demand will rise? Definitely not.
The companies which are participating in the datamarketplace will eventually buy IOTA tokens too. They see the potential and future value of the datamarketplace and guess what? You need the IOTA token to participate with the datamarketplace! If companies want to buy valuable data (which will reduce their own costs and make their profits skyrocket), they need IOTA tokens to purchase those data. This is one of the demand increasing projects which will develop sooner than you will know.
Growth explosion is inevitable. Behind the scenes proof of concepts are taking shape and soon it will become commercial products and services. There are hundreds, maybe thousands of concept products and services which are in development right now made by multi billion dollar companies (and small start-ups), that will change our daily lives. All of these things will make the demand increase, which will make te price of the IOTA token spike. And I didn’t even mention Qubic and revolutionizing the financial markets and many other projects. One thing is for sure, IOTA will be a part of our life.
These are some of the 50+ companies/universities which are looking at and working with IOTA.
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(These are my own views and speculations, not an investment advise.)