Siacoin project originally got conceived in 2013 by David Vorick and Luke Champine and got officially announced in 2015. The goal of Sia is to create a cloud storage platform that is decentralized. They are different from the cloud storage platforms we have today that are centralized (Amazon cloud for example). Instead of leasing storage capacity at Amazon cloud (centralized), users can simply hire storage from each other, by means of its distributed storage platform that runs on cloud. Anyone can become a part of this platform and that is why it is distributed and decentralized. You can give Sia some of your storage capacity and you will be rewarded in their Siacoin.
Advantages of Sia
- Siacoin states that it would cost around 23$ per month to store 1TB of files on Amazon S3 and only 1-2$ per month through Sia. This is obviously a big advantage when compared to its competitors.
- You control your own data and files. Unlike the traditional providers of storage, where third party or companies can access your files or even control it, Sia encrypts and distributes your files across a decentralized network. For example if you hire storage from me (we are both users of the Sia platform) to store an important file, I will not be able to see it. It is encrypted and little parts of your file gets distributed all over the network. Only you will be able to see your complete file.
- The software of Sia is open source and leading software engineers can contribute to it. Sia has a community of developers as well that create new applications on their API.
- By using the Sia blockchain, storage providers compete for your business and this makes prices so affordable. Siacoin is used to pay the storage providers and it can also be mined.
Skynet is a new feature build by Sia and came out this year. It is a decentralized file sharing platform and CDN (content Delivery Network). This is a big step for Sia and now they have created a file sharing platform as well, rather than only a file storage platform. The developers see it as a storage foundation for a free internet. Right now you can share your files on Skynet and it will be public for other people to see, as long as they will have the right Skylink that goes with it. Later on they will create a privacy feature in Skynet and then you will have the choice to either be public, or private. If you opt for private, you are most likely going to be able to share your files or content only to the ones that you have invited (maybe people have to pay a fee before they are allowed in).
Sia has over 1.2 million downloads and 341 storage providers. Their total storage capacity right now is around 2PB and in use is 780TB. Most of the providers come from Europe and the USA. Asia is an area where Sia can still improve.
Siacoin weekly chart
Here is a weekly chart of Siacoin compared to the dollar on Bittrex with the indicator OBV :
One thing pops up in my mind. Why is the On Balance Volume (smart money) rising since 2018 and price is going lower inside a channel ? Siacoin had a high of around 0,09$ and its low so far after the all-time high has been 0,00077$. Siacoin has been crushed like many other projects and the question is if it will ever recover back to its all-time high ? No one can really answer this question of course, but I am intrigued by the OBV indicator and the channel it is in and at the same time the price development of Sia. For a couple of years now we see bullish divergence on Siacoin, but so far price does not reflect it. Until price will break out of this channel to the upside, we have to assume that price wants to remain inside this channel and create lower lows and lower highs. If OBV breaks the channel to the downside, that would be rather bad news. We have to assume that all the bullish divergence did not work out and price will most likely fade away in time. However if it stays inside the channel, I will assume there is still hope to see an explosive price rise in Siacoin in the years to come. What is encouraging to see is that in general the green candles are the bigger candles over the years presented on this chart. We obviously see the big dump (red candle volume) during the coronavirus scare, but more of the bigger candles are green candles. This means there is still interest for this project and someone (or more people of course) are scooping up Siacoin for very cheap prices.
My own view
Siacoin was one of the first projects I found really interesting in cryptocurrencies back in 2017 (end of 2017). I really liked the concept of file storage in a decentralized distributed way. Everyone can participate and offer their storage capacity that is still free on their computer for rewards. As a concept it can work and change the way we are doing it now, which means in a centralized and expensive way. Siacoin is fighting against the likes of Amazon and Google and that is very brave and will be hard to beat. I decided to invest a very small amount (it was one of my first dips in crypto) and I saw it rising 5x in no time ! However since I did not understand much yet and was greedy, I did not sell and saw it go all the way down. I did not re-invest in it yet and by creating this article I am learning myself as well to see if it is still worth it or not. The developers are still working and Skynet is a good example of their work. Seeing the OBV on the weekly chart, the bullish divergence, I might consider investing again to be honest. I will however not invest too much and will keep it small, since there is uncertainty if price can actually recover or not. If I lose my money, I will be ok with that. In this case you might see it as a bet and it can turn out very profitable. I like the idea and concept of this project and it can really revolutionize the way companies or people store their files and keep them safe.
Siacoin is an interesting project that is still developing, even after the heavy bear market we had. This project has been around for some time now and is still to be found in the top 100 of coinmarketcap. Next to their file storage platform that is decentralized and distributed, they have created Skynet, which is a CDN and file sharing platform. Sia competes with giants like Amazon and Google, so it will not be an easy competition. Sia is a lot cheaper (1-2$ per month per TB) than Amazon (23$ per month per TB) for file storage and that is a big advantage for them. Decentralization and the concept of everyone being able to participate are two other advantages I see over something like Amazon. The price of Siacoin has been going down for years but we see an interesting upwards trend in OBV and often volume precedes price. This would mean that the price of Siacoin should be rising in the upcoming years if we have to believe this indicator. I personally still believe in this project and will consider re-investing in it since prices are still very cheap at the moment. However I do think it is wise to keep the amounts small for investing in this project, because there is uncertainty for me on the price of this cryptocurrency. You should be willing to accept the risk that you can lose all your money, by investing in this currency, but this goes for every single cryptocurrency out there I guess.
This is not financial advice and I am not a financial adviser. Please do your own research and make your own decisions.