Siacoin (The Long Term Hold)

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On a fundamental level, Sia takes cloud storage out of the hands of monolithic providers and puts it back into the hands of individuals.  This offers users a peer-to-peer storage ecosystem that allows anyone to rent out or take advantage of spare hard drive space.

All services on the network are paid in Siacoin, and all transactions in the Sia ecosystem are secured through filing contracts and storage proofs. You never have to worry about an attack on servers, because no outside company or third-party can access or control your files, unlike traditional cloud storage providers. Essentially, you’re flipping the script on iCloud, making it decentralized and in the end more affordable compared to the older systems.

This time I won’t put down a price prediction because when I do that,  I tend to get people who disagree and act like I was giving them the inside scoop. I’M NOT. I’m here to discuss what I think a company can do in the future to hopefully add value to your crypto-portfolio. Anyway, Siacoin is one of the many companies who’s biggest seller is the fact that it is a blockchain based company. Like with all the companies who try to sell blockchain as a save all answer to all the current problems, Sia aims to compete with Amazon, Google, Apple etc. This is good! The Sia company has goals that put it in line with actually being a competitive company and put value to the holders of Siacoin (or investors). Thinking of a similar company with the same goal of being a competitor, Ripple wants to be the forefront of money transferring (basically). Looking at Siacoin they have a clear objective of wanting to be your go-to for online storage and make sure your information is NEVER compromised. Sia distributes and stores redundant file segments on nodes across the globe, eliminating any single point of failure and ensuring uptime that rivals traditional cloud storage providers.

“We believe that neither individuals nor institutions should be beholden to large corporations. Sia was created to promote and safeguard users’ freedoms. It’s our attempt to bring decentralized storage built on blockchain technology to the mainstream without sacrificing price or performance.”

Sia’s platform consists of both providers (hosts) and clients (users).  Through the platform, users commission storage space from hosts, and the hosts are compensated for their services in Siacoin.  The ecosystem will provide flexible storage options and will be largely free-market driven.  Providers can set their own prices, advertise their level of reliability, and set standards for penalties should problems arise in storage or files be lost.  Additionally, they can choose to deny a client storage if they’re uncomfortable with the nature of that client’s data (e.g. sensitive, illegal, or ethically questionable materials).

sia cloudClients also have a series of protections in place to safeguard their own interests.  They have the option to split copies of their data between multiple providers to ensure file security and retrievability. For instance, if a provider were to lose a client’s file or simply refused to release it, the client could retrieve his/her files from another provider’s storage. Both parties can also agree upon contractual penalties that a provider will incur if s/he doesn’t provide proof of storage or withholds a client’s data. Clients have the option to reward providers with uptime incentives on top of the additional storage fees, as well.  With these payments, clients incentivize providers for being more attentive to their needs, including faster document uploads, enhanced upkeep to process requests, etc.

siasave

Looking at the picture above we can definitely see that the costs are EXTREMELY cheap compared to the top companies listed. At $2 for storage and $1 for bandwidth, how can you go wrong with trying this product out? No way in hell will your information ever be stolen, shared without your permission, or lost forever. That’s a quality product at a great price, and ignoring the price of the coin itself, you can definitely see the competitive advantage that Sia has in this industry – if only they were selling stock I feel like a lot of people would be lining up at the IPO trying to get a piece of the action.

If you now blockchain, and know it well you would know how the price of this coin could increase. First of all, it has a use case that people will one day see and begin to join the Sia network. The nodes are what keep the network running (in a decentralized manner of course) and for the nodes putting in computing power (and electricity costs) they get compensation in the form of Siacoin. Obvious right? But it seems that people forget the main fundamentals of how blockchain works. The miners out there keeping the network alive get paid in cryptocurrency and thus put more coins in the market, BUT the use of the coin in the process of buying storage keeps the prices stable and as more people join the Sia network (as a customer) they help keep the supply and demand balance well enough to drive up the price. That concept is supposed to work for all blockchain companies, but people like to get caught up in the hype and think that a certain coin is going to KILL the old system, instead of thinking of it as a company who has to compete and drive down prices to get customers.

Siacoin is a buy and hold coin in my opinion. At the price of $0.020240 and moving, it seems to be a cheap price for a company who aims to be your trusted online storage. All that needs to happen is time to pass and the team at Sia to keep pushing its goals and become a global competitor in digital storage. As more people jump into the network to help it grow, and more customers start to use the product provided, a price far above the current price is definitely possible! As for the price and when? I could not tell you obviously, but based on the road map provided by Siacoin – be on the look out for big moves to be made in the next two years!

Remember that this is a case situation and no guarantee can be made on the outcome of your investment based on this knowledge. Article written and interpretted by Cole Horton, and influenced by Colin Harper of Coin Central. 

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Real World Application (After the BIG Crash)

A Man Is Trying To Sell His Car.

Take any business class in college and you’ll notice one thing that stands out as a universal theme. Money, the glue that holds the market intact. With a business its main goal is to generate as much revenue as it can… but at the cost of providing some sort of real world benefit. Without a product or service at the end, what can a business really do you for or the real world? In order for these companies to survive they have to help YOU, the consumer in some sort of way. If a company has nothing behind it you have a Ponzi scheme (BitConnect) which is an evil form of business that we as a society aim to stay clear from. Think about it, you can fall in love with a concept all you want, but if it isn’t practical or has utility what are you really in love with? You’re probably in love with the possibility of it getting hyped up for NO reason and making you RICH. Don’t lie to yourself because we’ve all made that bet before on a coin or two or three. It’s okay to speculate, but when reality comes crashing down all you have left is well… nothing because the rug was pulled under you so fast that you had no idea what actually hit you.

The goal in this new market is to pick the few winners that we hope can survive the big crash and make it on to become big names someday in the near future. We’re not predicting the future instead we are looking at coins or tokens with the best possibility of finding real world utility. Once the market matures we can set our sights on finding the left over companies who can create the greatest return of value for its shareholders or coin-holders (this is the daily goal of investing in stock markets).

First, I will release the picks in the form of a list then describe them below in as basic of a concept as I can. Reason being is because you didn’t pay me to be your financial adviser and instead I’m leading you into the direction to make your own call and hopefully be comfortable with your own decision. NOTE: The list is in no particular order and is incompelete.

  1. Bitcoin
  2. Ethereum
  3. Ripple
  4. Factom
  5. Golem
  6. Siacoin
  7. Civic
  8. Neo
  9. Steem
  10. Decentraland
  11. Wax
  12. Syscoin
  13. OmiseGo
  14. Dash
  15. Storj
  16. Stellar

 

  1. Bitcoin (BTC) – This is the gold standard of all cryptocurrency. The first one to hit the streets and the biggest one we know of today. At this point in Bitcoin’s life it is mainly used as a great store of value. Supply and demand play a big role in its future value. At 21 million coins and a growing population of people with access to information it is not hard to see how 21 million coins (a very limited supply) can go quick. It seems that with the fees ever so growing and wait times getting longer that this coin can really only be used to store value long-term value.
  2. Ethereum (ETH) – I hate to have to go through the basic ones like this but the value is there. Ethereum is the king of contracts and tokens. Look at the list of tokens out there, it’s obvious that Ethereum holds the number one spot for the amount for tokens using their native blockchain. In the real world, this platform has the ability to change the way a long of companies operate. In and of itself, Ethereum will be mostly behind the scenes, but its use is evident.
  3. Ripple (XRP) – Say all you want about XRP. This coin, and the company are here to stay. First, we must realize the difference in the Ripple company. You have Ripple (the actual company), RippleNet (the juice behind the company and its native blockchain), and finally XRP (the native digital asset). We are focused currently on the digital asset in this article so let’s start by saying that it has potential. If you have someone institution that wants to send, let’s say $38,000,000,000 you’re going to need those coins to be worth more that $1 a piece to be able to even handle such a load.
  4. Factom (FCT) – The coin that is the Fort Knox of data storage. You want to make sure that you’re about to hire a clean person with no criminal record? Factom keeps track of EVERYTHING about anything so that nothing is secret about a person or organization. Yes, this can be scary, but people forget that the government doesn’t already do that. Actually, speaking of the government, back in 2016 Factom was awarded a contract by the Department of Homeland Security for $200,000 to develop a system of security of digital identity for Internet of Things (IoT) devices.
  5. Golem (GNT) – Need to borrow a super computer for some reason? Seek Golem. A supercomputer powered by multiple PCs to entire data centers. If one computer on the network fails, no worry for it is decentralized, and like most of the coins in the market, have no one weak point that can be penetrated and ruin the system. So you have full-time access to a supercomputer that is almost always guaranteed not to die out on you.
  6. Siacoin (SC) – The cloud storage of blockchain technology. Just as Google Drive holds any information you want on THEIR servers, Sia can hold anything you want on their native blockchain. How? through the combined usage of all the computers on the network. When you join the network you can sell excess storage on your computer to anybody else and get paid to do it. Your information is broke up into little pieces and encrypted then sent out in many pieces across the network to other computers.
  7. Civic (CVC) – Equifax needs to read this part of the article. Civic is designed to secure people’s personal information away from hackers. Knowing how blockchain technology works it’s easy to see how this company works. Instead of having one point of entry, hackers would need a very LARGE team to even think of penetrating the Civic platform (almost impossible). Many companies in the world that hold personal information can greatly benefit from this company.
  8. Neo (NEO) – the Ethereum of China as they say. This coin aims to compete with Ethereum in a lot of ways and maybe someday in the near future they may be competing head to head. Smart contracts, platforms and tokens are the basics you need to know about this coin. Just as Ethereum, you can build any kind of token you want and release to the public. We see this coin as a foreign competitor that can possibly thrive right next to the top coins in the market. A quick tip, you hold this coin in your NEO wallet, you get paid in GAS token which itself is a token that is slowly gaining value in the market.
  9. Steem (STEEM) – the platform that aims to be the leader in social media, blogging, and content creation alike. Similar to YouTube, Steem has DTube which aims to be a main competitor. Although they might need to really consider a name change, DTube is the decentralized YouTube that wants to take away bias in who gets monetized and who doesn’t. No more rules that hurt the content creators who are just trying to make a living and releasing good content. There’s a lot more, but that’s your job to look into.
  10. Decentraland (MANA) – Straight from the website on this token, “Decentraland is the first virtual platform owned by its users. Grab a VR headset or use your web browser and become completely immersed in a 3D, interactive world There are plenty of opportunities to explore or even create your own piece of the universe. Here, you can purchase land through the Ethereum blockchain, creating an immutable record of ownership. No one can limit what you build. With full control over your land, you can create unique experiences unlike anything in existence. Your imagination is the limit: go to a casino, watch live music, attend a workshop, shop with friends, start a business, test drive a car, visit an underwater resort, and much, much more—all within a 360-degree, virtual world”.
  11. Wax (WAX) – I’ve mentioned this coin many times on my blog (twice) and I feel like it has potential to actually rock the $50 billion market that it resides in. A token that is traded on the WAX platform that users receive or pay out whenever they want to exchange “digital clothing”. Just how we in the real world buy and sell clothes and receive USD, on the Worldwide Asset Exchange we can buy and sell virtual skins and receive the native token. A Mike Novogratz favorite and a personal favorite of mine as well. Not too much of a gamer, but when there’s an idea like this that is virtually NEW to the market, I don’t see this having a hard time penetrating the market once it gains the proper traction it needs.
  12. Syscoin (SYS) – straight from the website, ” FULLY DECENTRALIZED MARKETPLACE. We have developed a state-of-the-art marketplace where you can securely and reliably buy and sell any items you wish. Entire stores can be created directly through the marketplace where you can sell your own products or re-sell others’ products for commission. Like Ebay or Amazon without corporate gouging, political interference, downtime, maintenance or hefty fees. Truly 1:1 global commerce. No middle man”.
  13. OmiseGo (OMG) – “OmiseGO is a public Ethereum-based financial technology for use in mainstream digital wallets, that enables real-time, peer-to-peer value exchange and payment services agnostically across jurisdictions and organizational silos, and across both fiat money and decentralized currencies. Designed to enable financial inclusion and disrupt existing institutions, access will be made available to everyone via the OmiseGO network and digital wallet framework.”
  14. Dash (DASH) – Supplied by coinsutra.com, “Dash is unlike other cryptocurrency projects like Ethereum or Stratis which are more of a development platform. Dash advocates itself as peer-to-peer decentralized electronic cash. It intends to be as liquid as real cash which we use in our respective countries like USD/GBP/EUR/INR or CNY. Dash is built upon Bitcoin’s core code with the addition of new features (such as privacy and quick transactions). Like BTC, Dash is open-source and has its own blockchain, wallet infrastructure, and community. But unlike BTC, its transaction fee is negligible. Moreover, it looks like from the attitude of the development community that Dash will only remain as digital money for the internet, which is a good thing”.
  15. Storj (STORJ) – This is similar to Siacoin, you can think that if this and Siacoin were to make it into the mature market someday into the future that it would be like Apple vs Android. Some people would trust Siacoin because it was bigger early on in the cryptocurrency market or Storj because it’s the new kid on the block. Nonetheless, this is blockchain technology meets encryption meets cloud storage. Your payment? Storj.
  16. Stellar (XLM) – a Ripple fork that aims to do what Ripple is doing, but more in the free side. What do I mean? Currently they are non-profit and want to be a leader in global payments. Can they do it? Maybe, if the team can gain even more traction and maybe one day go to for profit instead, they’ll be able to catch up in market cap and join Ripple in being leaders for global payments that are frictionless, and far times more of an improvement over the traditional payment systems like SWIFT.

 

 

 

Siacoin Price Prediction/Analysis

In my long and winded yet incomplete analysis of Siacoin, I found a range of probabilities that the coin could hit. The range which changes every second can be pinpointed from $.30 to $1.26 depending on the hour. The correlation I used was from two coins whose circulating supply was similar and with market caps above Siacoin. Ripple and Cardano both had the similar circulating supply and a market cap far above Siacoin, which could be seen as a push for the coin to reach. Page one of the excel sheet you’ll see the analysis I just subscribed above, page two and three uses a scatter plot to depict the correlation coefficient of returns of Siacoin/Cardano and Siacoin/Ripple. Overall, there is a 15% correlation between Siacoin/Cardano and a 20% correlation between Siacoin/Ripple returns. That is simply the correlation of percentage returns and nothing else! Page one is more in line with speculation and emotion driven momentum which the crypto-market seems to abide by at the moment.

Click the link below to access the simulation spreadsheet.

SIACOIN SIMULATION