Bitcoin

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

Published

6 years ago

December 22, 2017

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

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

Bitcoin Price Dumps Below $41,000 Amid Uncertainty

Published

4 months ago

December 18, 2023

Crispus

Bitcoin price dumped hard on Monday, briefly slipping below $41,000, erasing gains recorded in the previous week. The premier cryptocurrency seems to have exhausted its recent rally propelled by industry vulnerabilities. At the time of writing, the world’s largest cryptocurrency was trading slightly lower at $41,385. Bitcoin’s total market cap has dipped by 2% over the past day, while the total volume of BTC tokens traded over the same period climbed by 58%.

Fundamentals

Bitcoin price has been facing retracements and a rollercoaster over the past few days after recently rocketing to a 20-month peak. On-chain data has suggested that many investors used the opportunity to take some profits, leading to a decline in the asset’s price.

Bitcoin’s price slump is mirrored in the wider crypto market, with the global crypto market cap decreasing by 1.85% over the past 24 hours to $1.55 trillion. The total crypto market volume has increased by 32% over the same period. The Crypto Fear and Greed Index has plunged from a level of extreme greed to a greed level of 70, suggesting a decline in risk appetite.

Ethereum, the largest altcoin by market capitalization, is currently trading at $2,167, down almost 3% for the day. Meme coins have been hit hard by the market slump, with Dogecoin and Shiba Inu down by more than 4% over the last day.

Last week on Thursday, cryptocurrency experts took notice of…

Bitcoin

Bitcoin Price is in Consolidation Mode Despite Market Optimism Post-Fed Decision

Published

4 months ago

December 14, 2023

Crispus

Bitcoin price edged lower on Thursday despite optimism in wider markets on the back of the Fed’s interest rate decision. The flagship cryptocurrency has been consolidating above the critical level of $42,000 after briefly topping $44,000, its highest level in 20 months. Bitcoin was trading 0.71% lower at $42,569 at press time. BTC’s total market cap has increased by more than 3% over the last day to $832 billion, while the total volume of the asset traded over the same period jumped by 22%.

Economic Outlook

Bitcoin price has been trading sideways over the past few days, suggesting a pause in its recent rally towards $45,000. The premier cryptocurrency has decreased by 4% in the past week but remains 15.22% higher in the month to date. The digital asset has staged a significant recovery this year after a torrid 2022 in which a string of scandals, including the collapse of FTX, led to a market meltdown, undermining the credibility of the sector.

The crypto market has been buoyed by the Fed’s latest interest rate decision. The US Federal Reserve on Wednesday held its key interest rate unchanged for the third consecutive time, in line with market expectations. With the easing of the inflation rate, members of the Federal Open Market Committee (FOMC) voted to keep the benchmark overnight borrowing rate in a targeted range between 5.25%-5.5%.

Additionally, the central bank indicated that three rate…

Bitcoin

Bitcoin Price Blasts $44K in Spectacular Surge as Spot Bitcoin ETF Approval Looms Large

Published

4 months ago

December 6, 2023

Crispus

Bitcoin price has been hovering above the $43,000 psychological level over the past two days amid anticipation about the potential approval of a spot bitcoin ETF. The flagship cryptocurrency has climbed more than 16% in the past week and nearly 170% in the year to date. Bitcoin’s total market cap has increased by nearly 5% over the past 24 hours to $858.9 billion, while the total volume of the token traded rose by 43%. The Bitcoin price was trading at $43,914 at press time.

Fundamentals

Bitcoin price has posted significant gains over the past few days, climbing to its highest level since April 2022, before the crash of a stablecoin that started a litany of company failures, pummeling crypto prices. The world’s largest cryptocurrency briefly topped the crucial level of $44,000 on Wednesday amid rising momentum despite being massively overbought.

According to analysts, with no spot bitcoin ETF approvals yet and the halving event five to six months away, the market is riding on FOMO. Capital has been flowing in the Bitcoin market amid enthusiasm that the launches of spot ETF will bring in billions of dollars of new investment into the crypto sector.

Investors have already started providing capital as seed money for ETF products. Notably, a recent report by CoinDesk showed that the world’s largest fund manager, BlackRock, received $100,000 in capital from a seed investor for its spot bitcoin exchange-traded fund…