(Updated in September 2018) Blockchain-based technologies have been promising to disrupt many traditional internet technology services for over a decade, and the current crop of crypto tokens are gearing up to take on some big names. SiaCoin takes aim at cloud storage providers, including both smaller companies like DropBox and technology giants like Google and Microsoft. Its purpose is to provide decentralized data storage, connecting people and companies that need to securely store their data with providers who have available storage capacity, allowing data storage at fractions of the current market rates. This analysis examines its business model and market environment to arrive at some SiaCoin price predictions for 2018.
What Are the SiaCoin Price Predictions for 2018?
A sign of a good coin that can hold its value throughout fluctuations in the market is healthy fundamentals. Is there a sufficient supply in circulation? Is there a demand for it beyond speculation? For SiaCoin, both of those fundamentals are very good.
SiaCoin is used for all transactions on the Sia storage network. You pay for the storage that you use in SiaCoin if you are a storage user, as well as depositing SiaCoin as a guarantee when you store others’ files. In other words, the use of the Sia storage network itself generates a strong demand for the coin. And the network is seeing quite a bit of use.
At press time, users were storing approximately 214 terabytes of data on the Sia network. Given that, at current rates, storing data with Sia is approximately 10 times cheaper than with a conventional cloud storage service, that number is bound to increase. That will further boost the demand for SiaCoin, supporting a steady growth in its price, which is of $0.006USD at the time of updating this article, a slight increase from last month’s $0.0057.
Similarly, the SiaCoin market has plenty of liquidity to support a steady expansion in its user base. Currently, SiaCoin has a market cap of about 237 million USD, with over 26 million USD in overnight volume consistently over the last several months. That means that the coin supply is available and supports growth as well.
These factors provide a degree of insulation from market shocks for the cryptocurrency, as well as serving as a good impetus for growth in value. That underpins our positive projections in our SiaCoin price predictions.
The fundamentals of the business model behind SiaCoin suggest that it is likely to increase in value over time, while its market environment suggests that it has a very high ceiling. Right now, the Sia storage network stores roughly 208 terabytes of data, but it has the capacity for nearly 4.5 petabytes. That means that its user base can increase to almost thirty times the current number before reaching capacity even without new storage providers signing on.
Similarly, the pricing on its services – which is set by the storage providers themselves – also gives the Sia network plenty of space to develop. The storage providers on the network right now offer storage for as low as $2 US per terabyte per month, while similar commercial services run from $20 and $30 per terabyte per month and may not offer the same level of redundancy and security features as Sia can.
SiaCoin also has many untapped market segments to work with. Currently, most of their users are private individuals storing personal files, but the system is easily scalable to accommodate complex content delivery networks. David Vorick – one of the founders of SiaCoin – has mentioned a collaboration with Netflix for distributed video delivery to be one of the company’s goals over the next several years.
Unlike many other cryptocurrencies, SiaCoin also has a more investor-friendly funding model as well. Instead of forcing investors to buy the actual tokens, they offer SiaFund tokens that function pretty much like conventional shares. Holders of those tokens automatically get a share of the profits from the Sia network. This makes it easier for SiaCoin to get the funding necessary for its ambitious expansion projects as well, making us bullish on long-term SiaCoin price predictions.
SiaCoin may not be a big name when it comes to cryptocurrencies just yet, barely breaking into the thirty top coins by market cap, but it has attracted attention from some of the cryptocurrency world’s largest players.
Of particular interest is the attention from the Chinese cryptocurrency mining pool AntPool. AntPool oversees nearly a fifth of all Bitcoin mining in the world, as well as having a strong presence in the hashing pools for other major cryptocurrencies. The people behind AntPool are not enthusiasts or believers clouded by sentiment, but businessmen focused on the bottom line. If they are dedicating processing power to a small currency like SiaCoin, it is likely that they see a huge profit in it down the road.
More important are the news from AntPool’s parent company Bitmain. In addition to owning AntPool and several other cryptocurrency hashing pools, Bitmain’s primary business is manufacturing dedicated cryptocurrency mining chipsets. In January, they released a chipset specifically designed to mine SiaCoin.
Given the expense of manufacturing such dedicated microchips, it is almost certain that Bitmain expects the SiaCoin network to expand significantly and a lot more new miners to join in on mining it. Because it has chosen to release the chipset right now, it is doubtless that it is banking on strong SiaCoin growth over the course of this year. When a big name in the cryptocurrency market like Bitmain is making these kinds of SiaCoin price predictions, we can’t help but agree.
Cloud storage is a major market that is ripe for blockchain-based disruption, but so far SiaCoin is facing a relatively weak set of competitors. That means that as the distributed storage market grows, SiaCoin is far better positioned to capture that growth than other cryptocurrencies focused on the same goal.
The major competitors for SiaCoin are Storj, FileCoin and Maidsafe. However, of those three, only Storj is actually live. FileCoin and Maidsafe are both based on some fairly interesting technology, but their implementations are far from ready. By the time they are, they are likely to find Storj and SiaCoin have parceled out much of the market already.
Storj is SiaCoin’s best competitor, and in fact has a slightly larger user base. However, that is for the same reason that makes it unlikely to surpass SiaCoin in the long run: it is not disruptive. While it is based on open-source and blockchain technology, it is fundamentally a traditional, centralized storage service with a dedicated network owned by a single company.
You can even pay for it directly in fiat currency, and its pricing is around the same level as that of Amazon or Microsoft. As such, it is not so much a disruptor as another iteration of the traditional file storage service, and is not likely to be able to compete against SiaCoin in the long term.
SiaCoin is a token that finds itself in the right place at the right time. It is market-ready just as interest is growing in private, decentralized, blockchain-powered cloud storage, and it has all the necessary technology and support to take advantage of that and grow very quickly. Given that kind of environment and SiaCoin’s success in convincing some major players in the cryptocurrency market, our SiaCoin price predictions for 2018 are very positive indeed. What are your thoughts about investing in SiaCoin? We would love to hear from you!