Connect with us

Bitcoin

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

Published

on

Siacoin
READ LATER - DOWNLOAD THIS POST AS PDF

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

Altcoins

Cryptocurrency Collateralized Debt Positions Are Growing in Popularity

Published

on

collateralized debt position
READ LATER - DOWNLOAD THIS POST AS PDF

While Bitcoin (BTC) continues to hover around the magical 10,000 price level, altcoins continue to fight an uphill battle.  Simply put, hopes of a future bull run continue to diminish as Bitcoin maintains its dominance.  One school of thought is that a few altcoins will survive and flourish, but which ones are anyone’s guess.  That being said, it’s hard to go wrong picking against the top coins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and EOS.  These projects have managed to find a foothold in the market and have a better chance than most of staying there.  While traders wait for their positions to increase in value, one opportunity that may be worth looking at is initiating a collateralized debt position.

What is a Cryptocurrency CDP?

In traditional terms, a CDP is essentially putting up collateral in order to receive a loan against the deposited amount.  There are several examples of this in our day to day lives.  Auto title loans from large companies like TitleMax are extremely popular with consumers.  Consumers are essentially able to use their car as collateral in exchange for a cash payment which can then be used for whatever needs the consumer has.  The consumer can continue using their car as long as debt payments are made.

The same concept applies to cryptocurrency CDPs.  Consumers are able to put up crypto tokens, such as…

Continue Reading

Altcoins

Hodium Presents a Compelling Opportunity for Outsized Investment Returns

Published

on

Hodium
READ LATER - DOWNLOAD THIS POST AS PDF

I’m sure all of us remember the cryptocurrency glory days of 2017 and early 2018.  It was one of the biggest bull runs in history and created incredibly wealth for quite a few early entrants.  Unfortunately, for most of us, those gains have most likely been wiped out during the altcoin apocalypse.  The truth is that traders probably thought a bit too highly of their trading abilities when the reality was that anyone could have thrown a dart at a board and ended up making money.

As markets mature (and the crypto market is definitely maturing) it becomes more and more difficult to generate alpha.  In that regard, it’s similar to traditional financial markets.  I can remember trading during my high school days.  It was the late 90s and right in the middle of the dot.com boom.  Eventually, however, the euphoria fades away and reality hits hard.  Now, it’s become rather difficult to actually trade profitably which has given way to the rise of hedge funds.

Hedge funds are investment funds that pool capital from accredited and/or institutional investors and invest in a variety of assets, often with extremely complex portfolio-construction and risk management techniques.  The professionals employed by hedge funds are the best of the best and have spent years honing their craft.  That is why they’re able to make the millions of dollars that they normally…

Continue Reading

Bitcoin

Behold The Cryptopreneurs – Overcoming The Obstacles Facing The Blockchain Industry

Published

on

READ LATER - DOWNLOAD THIS POST AS PDF

Integrating blockchain technology is fast becoming a necessity for enterprise ventures and small or large businesses, but with a growing number of choices in the tech revolution, it’s difficult to pick a direction without feeling overwhelmed or taken advantage of. This is where BEHOLD THE CRYPTOPRENEURS comes in.

Private keys, the myth of anonymity, and the battle against anarchist ideology are only a few of the difficult challenges faced by businesses that want to incorporate blockchain into their culture. Author Dennis H. Lewis guides the reader through those challenges and helps them discover the true potential of investing in this new economic paradigm.

Every business has pain points that must be overcome in order to branch out and thrive in an ever-changing commercial environment. Blockchain has real world solutions and cryptopreneurs are not limited to the cryptocurrencies they invest in but rather how they seize economic and technological opportunities to make it work for them.

Innovation, trust, and solutions can differentiate your business from all the noise, but without a solid marketing plan, a cryptopreneur can have the best idea and never get far. Remember: a million great ideas times zero market presence equals zero success.

Investors want to know there is public interest and enthusiasm in a project before they commit any money to it. As a cryptopreneur, you are tasked with generating that interest from the…

Continue Reading

Elite