Siacoin is a blockchain-based storage provider. They were one of the first cloud-based blockchain storage solutions. The platform is encrypted for privacy by default, users Control encryption, and decryption keys.
No third party has access to stored data on Sia, unlike traditional cloud storage providers.
The platform is decentralized for failure redundant file storage across multiple nodes around the world. Uptime is as good, if not better than rival storage providers.
Their long term vision is to become the backbone storage layer of the entire internet. The Siacoin team believes data should be free to everyone.
In this Siacoin rice prediction, we are going to analyze everything about the project to help you determine whether or not it's a good investment for you.
Siacoin (SC) Historical Price Analysis
Siacoin (SC) has been in the cryptocurrency market since 2015 and has its fair share of pumps and dumps throughout the years of its existence.
Its all-time low came several months after it was introduced by Nebulous, Inc, which saw its price falling as slow as $0.00001262 on December 28, 2015.
SC traded horizontally for the first half of 2016 when suddenly its price experienced some major positive price action that can be attributed to the impending 2nd bitcoin halving event in 2016.
Like many altcoins in the industry, the cost of SC has always been in direct correlation with the prices of BTC.
Looking at the charts of previous years corroborates this observation as most of the significant price movements of SC synchronizes with the few considerable price action of bitcoin.
This is most apparent during the late 2017-2018 bull run of the crypto industry and its subsequent and prolonged bear market.
The height of the bull run saw Siacoin's price soaring as high as $0.092868 on January 6, 2018. However, as soon as it reached this price point, it started its gradual descent to its current price, except in May 2018, just before it gets listed in Binance.
Current Price, Market Cap, & Supply Details
Siacoin (SC) Future Price Forecast Predictions
There is no sure way of predicting future prices of any asset; this is made even more complicated when trying to predict the prices of cryptocurrencies like Siacoin.
A quick search around the internet will show you that many analysts have varying opinions on what could be the prices of Siacoin in different time frames.
The only thing that is sure here is the fact that no one is sure of their prediction. We can only make observations from past price actions, identity price correlations and make informed assumptions in our effort to draw up a viable price trajector for the project.
More often than not, prices of cryptocurrencies are highly correlated to the price action of bitcoin, which many pundits believe moves in periodic price cycles.
These cycles usually happen after significant development on bitcoin such as bitcoin mining reward halving events, changing regulatory environment, protocol upgrades, and forks.
The price movement of BTC seems to be the single most crucial factor in determining the price of many of the altcoins in the industry, and Siacoin is no different.
We believe that with the recent bitcoin halving event, the continuous development of the Siacoin infrastructure, as well as the intent of building business partnerships with allied industries, will serve as catalysts for a new bull cycle for Siacoin.
For these reasons, we plotted a relatively optimistic price forecast for this digital asset in the short and long term, as shown in the following section.
Short Term Forecast
Long Term Forecast
Siacoin Price Prediction 2020
We believe that the recent bitcoin (BTC) mining reward halving event marks the beginning of a new bull cycle for the cryptocurrency industry.
This assumption is supported by observations gathered from previous halving events of bitcoin. In the short-term, Siacoin may experience bullish price action, with its price reaching $0.01 by the end of the year.
This prediction rides on the premise that BTC will continue to gain value throughout this year and will carry this momentum over next year.
Siacoin Price Prediction 2022
We are projecting that by this time, Siacoin would have reached a new all-time high at $0.10, which is around 50x its market value at current prices.
While this might be an overly optimistic forecast, this is not impossible either. This would likely happen in the year 2021 with some profit-taking shortly afterward, which will lower the price to around $0.0916 going into the year 2022.
This will be the 7th year since Siacoin was introduced, and we expect many of its essential features would have been released and partnership gaining ground.
Siacoin Price Prediction 2025
In five years, another bitcoin halving event would have occurred, which once again will signal the start of the new bullish crypto cycle.
2025 will be a year after the 4th halving event and likely time when a significantly positive price movement for bitcoin would likely to occur.
This also marks Siacoin's first decade of existence, and much of its infrastructure would have been released by then. Partnerships with allied industries would have matured, pointing to an ideal situation where Siacoin might experience another massive price surge.
Given the projected market of the Cloud market in 2025, a price of $0.5105 or higher for Siacoin is plausible.
Is Siacoin a Good Investment?
SC is a long term investment at this point. The projected value of global cloud computing by 2025 will be $712.83 billion. If SC captures 1-2% of this market, each token could be valued at $0.17 – $0.34.
These estimates are very conservative base multiples and don't take into account a crypto bull run, which could see the price rocket much further beating their all-time high prices and push to $1.00.
The Sia project is stable and could deliver outstanding gains if they continue development.
How to Buy Siacoin?
Interested buyers who want to buy Siacoin will be happy to know that there is an abundance of ways how to procure this digital asset. It is currently listed in many of the leading cryptocurrency exchanges in the industry today.
Please note that buyers might not be able to buy Siacoins (SC) with fiat directly through these exchanges.
They will have to buy bitcoins or ethereum first then trade them to Siacoins, after which they can withdraw their token to their preferred Siacoin wallet.
Those who want to buy Siacoins directly with fiat might want to use Instant Cryptocurrency Exchange, ChangeNow. It offers a simple yet powerful interface that allows users to purchase Siacoins using credit or debit cards through its partnership with Simplex.
Be mindful of how much SC you leave on your hot wallets. Be extremely deliberate when setting up ephemeral accounts.
Always fund ephemeral accounts with the smallest amount you are comfortable with losing. If you are handy with code, you could use Sia cold storage.
For all other storage, you should always use a hardware wallet, Ledger, or Trezor are our preferred choices.
With Sia, you can only use Ledger, and it requires command-line skills.
More Information About Siacoin
What is Siacoin?
The Siacoin project is an open-source, decentralized, blockchain-based storage solution. Similar to cloud services offered by Dropbox, Google Drive, Microsoft Onedrive, iCloud, and Amazon Cloud.
What sets Siacoin apart is how they manage downtime through the division of data, security with private keys (Google can't do this as this directly affects their ability to market to you, third parties will always have access to your data), and their price which is cheaper than its competitors.
Siacoin works by allowing hosts/ hard drive owners to rent their unused hard drive space to renters for a fee. The Siacoin platform uses smart contracts to lock up SC coins.
This ensures renters pay hosts as agreed, and hosts also have to put up SC as collateral. It also ensures uptime as the host can be charged for being down.
Siacoins' vision is to free data for everyone, and they plan to use unused hard drives from all over the world to create the world's largest storage database.
The company behind SiaCoin is Nebulous, Inc. The company started in 2014. In November 2014, the whitepaper was released.
Siacoin did not raise startup funds with an ICO. Sia raised funds from independent investors. The initial round of funding raised $1.25 million.
Nebulas Labs received these funds to develop Sia. Siafunds are another token on the network.
These are tokenized securities that pay out the holders a certain amount of Sia on the conclusion of every contract. In their second round of funding, they raised $3,250,000
Sia received their second round of funds because of their monumental achievements. At the time of funding, they had stored over 4 PB of data, distributed among 925,000 storage smart contracts.
The Sia network then had an additional 2 PB of available storage capacity. The Sia software had then been downloaded over 1 million times.
The Sia roadmap is detailed with simply understood objectives, and it is also available in real-time.
This sets them apart from most blockchains. Their community updates are frequent and informative if you don't like reading they have a youtube page that provides a 1-2 minute video with all relevant updates.
The Nebulous/Sia team has been together a long time since 2014. They have developed a group vision. Their investors include A_Capital, Bain Capital Ventures, Bessemer Venture Partners, Collaborative Fund, Dragonfly Capital Partners, Fenbushi Capital, First Star Ventures, Hack VC, INBlockchain, Raptor Capital Management, and SV Angel.
Siacoin proprietary software splits files into separate segments before they are uploaded. 30 hosts will each receive 1 portion of the data.
This creates no signal point of failure redundancy.
Siacoin creates these file segments using Reed-Solomon erasure coding. The technology comes from how CD' s/DVD's were encoded to still play even if damaged.
If 20 of the 30 hosts fail, the renter/end-user can still access and download their data. If one more of the hosts goes down, the platform will automatically assign a new host to the renters' data.
Each segment is also encrypted before it leaves the renters' computer. The hosts store only encrypted files on the Sia platform. Traditional cloud storage providers don't encrypt your data by default.
Segmented storage adds a layer of security. Fragmented files are incredibly hard to read. The files need to be reassembled to become readable.
This decentralized approach is what makes blockchain technology the perfect solution for cloud services.
Renters on the Sia platform create file contracts, these contracts determine uptime commitments, pricing, other criteria the host and the user want to include.
Sia recently added price gouging protection to the renter, to protect the service from host exploitation.
Ephemeral accounts were also created to speed up the download process, by giving hosts access to a pre-funded account, hosts can access funds faster and speed up the download process.
Unfortunately, hosts can also steal these funds at any point, and the renter has no recourse. Siacoin advises renters to fund the ephemeral accounts with small amounts of SC.
The file contracts are almost like smart contracts; they create service level agreements (SLAs). These agreements are then stored on Sia's blockchain when transactions are completed.
The host has provided adequate uptime, and the renter has stored their data for the intended time. These smart contracts are enforced to use the network, and no third parties are involved in the process.
Renters use Siacoin to purchase storage, but hosts also need to deposit Siacoin into every smart contract as collateral.
Small transactions flow between the host and the renter. This process is slow, taking up to 2.5 seconds. This is one of the scalability issues the network faces.
Ephemeral accounts solve the problem for now but will be gamed by hosts eventually. The collateral staked by hosts provides a financial disincentive to not be online.
Renters have to prepay for their contract, SC is set aside for transferring, and storage contracts typically last 90 days, contracts are automatically renewed. If the deal is canceled, all unused SC is refunded back to the renter.
When the contracts end, the host needs to provide proof that they stored the renter's file by the contract. Sia calls this storage proof. This storage proof has to appear on the Sia blockchain within a certain amount of time.
If the storage proof appears on the blockchain, the host is paid; if it doesn't, the host is penalized.
Siacoin uses Merkle trees for its storage proofs. Merkle trees allow the network to confirm a small piece of data (hash) is part of the broader set of data uploaded.
These proofs are tiny and ultra-secure; they will ultimately reduce blockchain bloat.
Blockchain bloat is toxic for this platform as it can take days to sync the renter or host to the Sia blockchain. Siacoins' Lite Wallet could solve this, but they are still in beta testing.
Siacoin has officially launched sharing and content distribution. Skynet marks the moment “the tech is ready” for intensive marketing.
Video streaming and SiaStream are groundbreaking blockchain services allowing the streaming of media via a decentralized network, SiaStream is currently in beta, their alpha version will be available to the public soon.
Their services can also stream 4k video content seamlessly, which is impressive but cannot stream to your smart TV yet.
Nebulous Github is stacked with commits, pushing the Siacoin blockchain forward.
Sia remains on the cutting edge of what blockchain cloud storage could be. They are actively involved with end-users, trying to optimize product delivery, creating a more usable product.
Siacoin is mineable. It uses the Blake 2B hashing algorithm. SC was a GPU mined coin until Bitmain released an ASIC miner capable of mining Blake 2B.
Bitmains' Antminer A3 was intensely profitable, and this played a role in Siacoins' choice to fork the blockchain. This protected their vested interest in the Obelisk and the Obelisk SC1 miner, which was half as powerful as the Antminer A3.
Siacoin did this by designing a failsafe algorithm into the Obelisk SC1, incase Bitmain did not act transparently and fairly. This is the narrative push by Sia. Bitmain indeed did not act in the best interests of the Sia mining community. Sia took action to protect the network, as centralization can cause the death of a decentralized blockchain. Bitmain essentially attacked the Sia network and the Sia mining community. In our opinion, Sia acted correctly, but it's mining project, Obelisk, is simply the lesser evil and a money grab.
90% cheaper $1-2 per TB per month. Comparatively, 100GB of storage on Google Drive will cost $2 per month. Unfortunately, Sia is not as intuitive as Google Drive. The profitability is not there for individual hard drive owners either. Massive data centers will dominate this market, which is great for consumer pricing but not for decentralization.
Siacoin Market Competition
The current cloud computing market's major players are:
Delivering various services:
- Infrastructure as a service (IaaS)
- Platform as a Service (PaaS)
- Software as a Service (SaaS)
The major problem for Siacoin is competing against companies that provide a full stack of solutions that integrate within their services. This makes them more attractive for businesses that want one solution to solve all their problems. Siacoin is only focusing on data storage and has a long way to go before they can compete. Their price point can only get them so far if their services can't integrate with other service providers.
Carbon and Siacoin integration allow users to purchase Siacoin using their credit or debit card. The delay imposed by exchanges is ridiculous, from KYC (Know Your Customer), and maintenance periods to liquidity issues, which could force the user to register with another exchange and start KYC all over again, or be financially penalized for their immediate need. The Carbon Siacoin relationship solves these issues and creates an alternative crypto onramp for the benefit of the whole crypto community.
Cloud storage is the future of data storage. As humanity stores data more and more content online, hacking attacks of cloud services is inevitable. How secure is your data on Amazons' or Googles' servers unencrypted? Major cloud service providers do have some of the best engineers working on their security. User error is still to blame in some cases. Having access to encrypted data is useless without the decryption key.
Siacoin is still not a household name for cloud storage, but with the release of Skynet, this could change. They could begin a more aggressive marketing campaign, turning their blockchain into the premier cloud service provider. They have a lot of development ahead to make this a reality, as cloud service providers offer suites of options and lock users in with additional services that make it hard for them to leave.
The additional cost of swapping cloud providers can be astronomical as each host machine needs to be integrated into the new system. Countless man-hours have to be allocated, and users need to be retrained on how to use the systems. Sia does have a cost advantage, but in its current state, it can't compete with major cloud service providers. They can, however, offer solutions to blockchain developers and home users. The Carbon Siacoin relationship does make their service easier to use. Major cloud providers have had these payment systems in place since inception, and it took Sia half a decade to create the same ease of use.
As a simple, cheap backup solution, they are miles ahead of their competition, Their network is in the PB range, which is no small feat and they now offer streaming services, which opens another niche market, home entertainment.