Siacoin is a digital asset that utilizes blockchain technology with cloud integration. Just two days ago, Sia experienced a hardfork and it now has its own blockchain. Since storage servers are expensive, Siacoin invites their community to join and lend out space to others in the network. By lending out their free space, users will be able to profit. Why not lend out space that you are not using? Everybody has extra space on their computer that they are able to spare. The cloud storage industry has a lot of players already. There is Google Drive, Dropbox, Microsoft’s One Drive, and other small players that have saturated the market. So the competition is existent and it may be hard to target users.
Here are the logistics of Sia. If a person would like to rent out their storage, they would need to purchase 2000 Sia coins. Currently each coin is going for $40. This will be a key component for the price of the digital asset to increase. The more storage you would like to rent out, the more coins you would need to buy. Once the coins are purchased, the investor will have to do some configuration on their end. It is a tricky system and will take some work. Currently the storage space on the Sia network is 1.1 petabytes and only 2% is being employed. This means that there are a lot of investors renting storage but not a lot of them are renting out the space. If Sia were to attain business from large-scale companies, that free space will diminish and in turn the price of the cryptocurrency will rise. It is hard to tell when this will actually occur, but we believe it will be happening soon.
Now lets talk competition. Dropbox has a valuation of about $3.5 billion. Sia has a market cap of around $500 million. So as you can see there is a big comparison and it seems that the digital asset is a little inflated. There is a lot of potential for Sia to be just as big as Dropbox. Although Sia’s price is inflated, we believe in the service it provides and feel that it is a more secure way to save information