Why I Am Buying Siacoin
I have been researching a number of cryptocurrencies the last few day in an attempt to find some that are worthy of my hard earned dollars. For each coin I ask four main questions:
What is it?
What problem does it solve?
What is the future for it?
Should I invest?
I have a whole Word document devoted to this process. Today, I would like to share with your the first of the coins that I am investing in. It is Siacoin and my reasoning is as follows.
What is it?
Siacoin is a privacy play. The technology, according to their website, splits and encrypts your data across a decentralized network. This gives the user an added layer of protection. Since the user holds the keys, they truly own all the data. No outside company or individual can hack into the system and steal your information.
With so many public cyber attacks in the news, the company could be on the verge of something big.
It currently has a market cap of $460 million and trades about $12 million a day. It is currently in the top 20 on Coin Market Cap and I feel like it will soon be moving into the top 10.
What problem does it solve?
The main problem it solves is that of cost. To date, cloud storage is expensive. Sia will reduce the cost up to 10 times. According to the company, storing 1TB of data with Sia would cost about $2, compared with $23 to store the same amount on Amazon S3. This is the type of savings that get the attention of bean counters at many corporations.
This is, in a sense, the battle for the future of cloud storage. It is never easy to take on the industry leaders, but it has been done before. Sia has the technology, now it remains to be seen if they have the fight in them to take on the giants.
What is the future for it?
Cloud storage is a huge industry. It is estimated that the cloud storage industry could reach $74.94 billion by the year 2021. That is not too far off. If Sia can position itself as an affordable alternative to traditional cloud storage they could easily be a billion dollar company.
Should I invest?
Yes, the potential is there. This could be big but the only issue I see is Sia gaining the trust of corporate America. This could be a major sticking point. However, if they can land one high-profile client, I can see the price of Siacoin exploding. The fact that is is so cheap at the moment ($0.017) that it seems like a steal.
Cloud storage has always scared me a bit because it is a centralized store of information. It is like a beacon of light for those that might want to hack in to find a treasure trove of information that might be profitable to them.
Agreed, but the problem is many people using conventional storage providers like Amazon cloud and Dropbox and open themselves up having their content data mined. Siacoin is cheaper than Amazon cloud and Dropbox per TB and there should be no risk of your data being snooped on.
I have the same fear. I hate storing anything that I think is valuable on Dropbox or Google Drive. Hopefully, Sia will solve that problem.
In comparison with StorJ and MaidSafe, I agree that Sia feels like the best move. It will be interesting to discover how the migration of StorJ to Ethereum will play out.
I looked at StorJ but not MaidSafe. I think with all the attention Siacoin is getting and the update that is coming, it should get a nice boost.
I got me some of these a couple of weeks ago.......I can really only go one way, and large corps would be crazy not to use it. Nice article, thank you :-)
Thanks for the reply. I think if they can land one big client, the price will take off.
Yes Siacoin will reach 1000 satoshi next days
There is supposed to be an update coming in a few days. That will probably give it a boost.
Thanks for sharing. So interesting for an crypto layman. Please could you elaborate a bit more: 'Sia gaining the trust of corporate America. This could be a major sticking point'. I don't understand the problem. I follow you.
Most corporations who use cloud storage already are using the big "trusted" names, like Amazon or Microsoft. Most of them haveprobably never heard of Sia and may view cryptocurrency as a fad or something not to be trusted. Once Sia gets a few big clients, other big companies will begin to trust them and do business with them.
Thanks @isoliz
Solid blog. Really appreciate you bring this to our attention. There's a lot of exchanges out there. I found that coinmarketcap.com gives quite a decent overview. This is quite an interesting website I found: https://www.coincheckup.com They give great insights in the team, the product, advisors, community, the business and the business model and other techincal insights. For example: https://www.coincheckup.com/coins/Siacoin#analysis For the Siacoin Indepth analysis.