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Here’s Why The Siacoin (SC) Economics Set It Up For Future Gains

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Siacoin

Siacoin (SC) has been a wild ride over the last six months or so. Back in April, SC went for around $0.0008 a coin. By mid-June, this was up to close to $0.02 a piece – a close to 2,500% run. By November, however, things had dipped to $0.003 and it looked as though the mid-year run was all but behind the coin.

Then things started to pick up again.

At close of play yesterday, Siacoin logged fresh all-time highs and recorded a market capitalization of just shy of $764 million. Today, things have corrected somewhat, but this is likely far more to do with a space-wide correction (and the resulting collateral implications for the smaller coins) than it is any fault of Siacoin’s.

SC Daily Chart

SC Daily Chart

With this in mind, then, where can things go from here?

Let’s take a look.

First up, it’s worth noting that there may be a couple of days of weakness ahead. The wider markets, as mentioned, have taken something of a hit today and there’s a good chance that the weakness will continue moving into the holiday period.

With that said, however, these can be great opportunities to pick up some cheap coins – assuming you can uncover those that have the potential to piggyback the overarching upside momentum as and when things turn around.

So, is Siacoin one of these potential winners?

We think so. For anyone new to this coin, it’s a key component of a storage network type system called Sia, which is similar (in some ways) to the already established networks out there – Storj, etc. It’s also very different in other ways and it’s in one of these differences that we base our long-term bull thesis.

Basically, anyone that wanst to ‘rent’ out some of their hard drive storage space to Sia users has to download a local file and then tell the protocol how much you want to rent out (how much space, that is).

You then have to buy some Siacoin and ‘stake’ it, as a sort of signal that you’re active. Storj doesn’t require this. You then have to make sure that the company always has access to the file (so, you’ve got to leave your computer on). If the person whose file is on your computer tries to access it and it’s not available because you’re not connected to the network, you lose some of your Siacoin (it gets burnt).

And this is why we like it.

First, because participants have to buy Siacoin before they can rent out their storage space. This produces a steady and consistent demand for the coin, which over time should translate to a price increase.

Second, because the supply decreases over time as participants fail to meet the availability rules associated with the network and – in turn – have their Siacoin burnt as punishment. This will cause a steadily decreasing supply of the coin which, again, will gradually push up price (assuming demand for the service remains constant or increases).

Keep in mind that the company has to compete with Storj in this space and that its ability to do so is not guaranteed – Storj has some big names behind it and is (probably) the most well-established player in the decentralized peer-to-peer storage game as things stand. With that said, however, it’s incredibly competitive from a price perspective and this economics of the Sia system, as outlined above, position the coin for appreciation on two fronts as and when the company grows its base of users.

Bottom line: this one could be a winner and right now it’s correcting after a big run, meaning some cheap coins are on offer ahead of a recovery.

 

We will be updating our subscribers as soon as we know more. For the latest on SC, sign up below!

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.


Image courtesy of Sia.tech

Bitcoin

Blockchain technology outshines Bitcoin and Gold during global pandemic

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As the popularity of cryptocurrencies such as Bitcoin begins to level up with investments made in metals such as Gold, together they have both made significant advantages for investors who have taken a leap to invest in them.

However, thanks to the pandemic and the dynamic shift in investing and the economy, many investors have seen fluctuating losses and gains thanks to the uncertainty of the current business world. 

Many investors that backed companies who have exposure to blockchain technology have seen an approximate amount of 54% return on investments over the past year. This is even after considering how hard the global tech market and companies have been hit since the beginning of the pandemic.

What is blockchain technology?

Blockchain technology was first introduced as a supportive technology for Bitcoin. A blockchain is a simple, unchangeable and un-hackable digital ledger that holds transactions in little blocks attached to a chain. The transaction is duplicated and distributed across the entire network of systems on the blockchain, making it available for everyone on the network to see. 

Each block in the chain contains various transactions which are recorded on the participant ledger every time a transaction takes place. The database is decentralised and is managed by multiple participants known as Distributed Ledger Technology (DLT).

Although blockchain technology was birthed from Bitcoin and was widely adopted for the use of cryptocurrencies, the way it works and its security has made…

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Bitcoin

Bitcoin Surges After Tesla Bought $1.5 Billion Worth of BTC

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Cryptocurrency

The sudden rise of Bitcoin has been connected to the decision taken by the Tesla electric car company to buy $1.5 billion worth of Bitcoin.

The company explained in a filing with the Securities and Exchange Commission (SEC) that it bought Bitcoin to diversify its cash returns and more flexibility.

Musk’s Tweets also impacted Dogecoin’s price

Tesla also added that it will start accepting Bitcoin payments for all its products, although this will be based on a limited basis and applicable laws. If the company concludes and starts accepting cryptocurrency, it will make it the first major car manufacturer to accept Bitcoin payments. The company’s founder and Chief Executive Officer Elon Musk has developed an interest in Bitcoin and cryptocurrencies.

He has been tweeting severally about the viability of the Dogecoin (DOGE), which doesn’t have an important market value attached to it.

Few hours after endorsing Dogecoin, the cryptocurrency rose by an impressive 50%. But regulatory authorities are still concerned about the risks in cryptocurrency investments, with several regulatory bodies warning traders and investors they could lose all their money from crypto investments.

But for Tesla, the company decides to diversify its funds and increased its cash returns. However, Tesla also warned investors about the volatility of Bitcoin’s price in its SEC filing. According to the SEC…

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Altcoins

XNO Token of Xeno NFT Hub listed on Bithumb Korea Exchange

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Hong Kong, Hong Kong, 25th January, 2021, // ChainWire //

Xeno Holdings Limited (xno.live ), a blockchain solutions company based in Hong Kong, has announced the listing of its ecosystem utility token XNO on the ‘Bithumb Korea’ cryptocurrency exchange on January 21st 2021.

Xeno NFT Hub (market.xno.live ), developed by Xeno Holdings, enables easy minting of digital items into NFTs while also providing a marketplace where anyone can securely trade NFTs.

The Xeno NFT Hub project team includes former members of the technology project Yosemite X based in San Francisco and professionals such as Gabby Dizon who is a games industry expert and NFT space influencer based in Southeast Asia.

NFT(Non-Fungible Token) technology has recently gained huge focus in the blockchain arena and beyond, making waves in the online gaming sector, the art world, and the digital copyrights industry in recent years. The strongest feature of NFTs is that “NFTs are unique digital assets that cannot be replaced or forged”. Unlike fungible tokens such as Bitcoin or Ether, NFTs are not interchangeable for other tokens of the same type but instead each NFT has a unique value and specific information that cannot be replaced. This fact makes NFTs the perfect solution to record and prove ownership of digital and real-world items like works of art, game items, limited-edition collectibles, and more.

NFTs are already being actively traded in markets globally. For…

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