Cryptocurrency and cloud storage both are on the rise; Sia brings them both together.
Siacoin is the utility token utilized in Sia, a decentralized cloud storage platform that serves as a secure marketplace through which users are able to lease unused digital storage space.
As with any cryptocurrency, there’s speculation over whether or not Siacoin will reach $1. At Cripta, we’re confident that it’s well on its way there. With promising growth trends and Sia Storage usage on a steady increase, things are looking good for Siacoin’s value.
Of course, there are potential barriers and valid concerns from current and potential investors at play. In this article, we’ll address those challenges, bring some peace of mind, and share why we feel so confident in the outlook of Siacoin. Will Siacoin reach $1? We certainly think so.
Concerned about Siacoin?
If you’re not so sure about the idea of Siacoin reaching $1 anytime soon, you’re certainly not alone, and your concerns are valid.
An article written by Guzman Pintos in 2018, predicting that Siacoin would not reach $1 by 2020 (which turned out to be true), outlines a few of the issues at hand. Pintos references economic fundamentals like Metcalfe’s Law to explain why the use of Siacoin and inflation both play major roles in the growth of the cryptocurrency’s value.
These are undeniable facts; inflation is always an issue to consider when it comes to cryptocurrency, and it’s true that its value can only increase as long as there is an increase in the use of the Sia network. But these factors are not necessarily a dead end for the value of Siacoin, and in fact, we feel confident that it will reach $1.
Below, we’ll address these issues and explain why they aren’t cause for too much concern regarding the growth of Siacoin. We’re more than confident that Siacoin is on its way to reach $1, especially when we take a look at the facts and the growth trends.
Why we feel confident in the growth of Siacoin
Inflation is under control
The first issue at hand is that of inflation. In fact, many people believe that Siacoin has a large inflation rate. But here are the facts: Siacoin actually has a decreasing inflation rate, and Sia inflation controls, known as Burn control mechanisms, are now occurring to keep inflation problems at bay.
These Burn control mechanisms are able to cause dilution of Siacoin, which drives down the value of each token. Plus, while Sia tokens are infinite the value of each token can be diluted if there is no way to remove the excess currency. That means that any tokens that are failing to add any more real value to the economy are able to be recovered - much like the US Treasury’s dollar currency controls.
Sia storage use is growing
As we mentioned above, the value of Siacoin is contingent on the use of the Sia network. This is actually great news at the moment, as Sia storage usage is growing at a fast pace.
In fact, since 2018, when Pintos’ article was published, Sia storage usage has skyrocketed from 160TB to 2PB. That’s an incredible year over year increase of 383%! And the largest share of that growth percentage has taken place just this year, in 2021 - which means Siacoin is on its largest growth upswing yet, and there’s likely more to come.
Here are a few reasons we feel confident that Sia storage consumption will continue to increase at a steady rate:
● Sia Storage is 10x cheaper than other cloud base storage options, making it the most affordable choice.
● Decentralized storage offers more, built-in, easy-to-implement security at no extra cost.
● Decentralized storage is highly resilient and resistant to mass outages, especially compared to other options like Google, who has seen large amounts of outages just this year
● Web 3.0 technology is emerging and on the rise
All of these reasons and more make Sia Storage one of the most attractive digital storage platforms for many consumers. The demand for decentralized cloud storage will only continue to rise in coming years, and with it, the value of Siacoin will as well, eventually reaching $1.
The bottom line
No outcome is completely predictable, and there are several factors at hand when it comes to Siacoin’s growth. However, by looking at growth trends and the increasing usage of the Sia network, we can get a pretty good idea of where the value of the currency is headed - and we think Siacoin is well on its way to reaching $1.