Sia Coin Intro
Sia is one of the players in the decentralized storage space. The cloud storage industry is massive and companies like Sia are hoping to put a dent in the dominance of other popular storage platforms such as Dropbox, Amazon S3, and Google Drive.
We have listed SIA as one of the best cryptocurrencies to invest in 2019.
But what sets Sia apart is that it is a decentralized, encrypted, peer to peer cloud storage platform. It is encrypted, multiplied, chopped into little bits, and then all those little bits are sent around to a bunch of different hosts. When you want access to your file (think of it as being in a T-1000 type state), the appropriate bits are recompiled and you get your file.
Sia has reduced overhead dramatically by building the framework and outsourcing the storage to anyone with an internet connection and a hard drive. That’s why it can charge a much lower fee. They multiply the bits in case a node holding a piece of your file happens to be offline.
Unlike most new coins, the Sia team chose not to hold an ICO. Instead, Sia began life when its genesis block was mined. This is very unusual in the cryptocurrency world. However, so far this has seemed to work out for Sia. Thanks to prominent investors such as Fenbushi Capital, Raptor Group, Procyon Ventures, along with angel investors like Xiaolai Li, the Sia team managed to raise over $1.25 million in funding without an ICO.
The idea of Sia was conceived at the HackMIT 2013 Hackathon, and was officially launched in June of 2015. It is now backed by Nebulous Inc, whose self-proclaimed mantra is: ‘Re-decentralizing the Internet’.
How to evaluate fundamentals of a crypto project
We should consider crypto valuations like educated gambling, a ‘prediction market’ where we are betting on the odds of project and token success. There are some catalysts of success we can identify:
- Project success drivers (user traction, strong financial bottomline, good treasury management, network effects/synergies between users and token investors)
Real user traction is the most important driver of success, that is what most of holders call “adoption”. If people start using certain crypto project because they find it useful and it makes their life easier, that is a guarantee of success. So far, almost no crypto project can claim to have done so.
Strong financial warchest that will enable teams behind the project to develop their visions, incentivize other developers to join them and start using their product is also a crucial aspect of any project. Tied into it is treasury management – especially for the project that had big ICO proceeds. Temptation to squander all those millions into “conferences and events” (read hard-core partying on yachts and luxury hotels) was massive, especially if we consider that majority of token projects founders were no-names and ordinary employees that worked for a paycheck before the ICO fairy-tale happened to them.
Another adoption indicator – network effects, where every additional user of a good or service adds to the value of that product to others. When a network effect is present, the value of a product or service increases according to the number of others using it.
If you can objectively notice that your favorite token project has some of these traits happening for it, be happy – you might have found a winner.
- Token success drivers (favourable demand-supply dynamics, programmable incentives on token, aligned incentives with management team and consensus on token as common unit of value creation).
Token success is completely dependent on tokenomics. As defined by infloat.co, tokenomics involves the incentivization of certain stakeholders to ensure particular behavior.
So, tokenomics is essentially an incentive structure designed to ensure that a token has a purpose and utility within its native network. It is the study of how coins/tokens work within the broader ecosystem that can be considered as a sovereign micro-economy. This includes such things like token distribution as well as how they can be used to incentivize positive behaviour in the network.
For example, bitcoin is designed to ensure that bitcoin miners have a reason to mine new bitcoin. Miners validate bitcoin transactions and receive (or create) newly minted bitcoin in the process.
On the other hand, individuals, businesses and other bitcoin users pay a transaction fee for miners to include their transaction in the next block. This ensures that even when all bitcoin have been minted (to the tune of 21 million, which should happen in around 2140), bitcoin miners are still incentivized to keep ‘mining’ (i.e. validating transactions).
To paraphrase all of the above in the simplest terms: if you, after weeks of research and reading, can’t figure out why the project needs to have a token, it probably doesn’t.
So why does the token exist then?
– To make the project founders rich.
But there are some people on Twitter, Reddit, Telegram claiming otherwise.
-Yes, they are either: paid to do so by those same founders, they are desperate and delusional bad holders or they are just stroking their own ego with newly learned fancy economic terms and jargon.
Needless to say – stay clear of such projects.
Sia coin Price Prediction for 2019 – Our Forecast
SC, as the rest of the market, is tightly coupled and dependent on bitcoin’s price action. If bitcoin embarks on another bull run, SC can hope for one as well. Since that is very unlikely, don’t expect much to change for SC price-wise in this year. So 2019 will be a year of boring sideways action with minor bitcoin ignited jumps and slumps.
The main currency in cryptocurrency markets is Bitcoin and given this, altcoins tend to fuel Bitcoin runs and Bitcoin tends to do the same in return. Given this relationship, Bitcoin price movements (or lack thereof) tend to effect altcoin prices.
When Bitcoin goes up swiftly, it will likely:
- Suppress or depress altcoins as money flows into Bitcoin;
- Or, take altcoins along for the ride
In cases when Bitcoin plunges, it will likely:
- Depress altcoins as money flows into fiat;
- Or, cause altcoins to boom as money flows into them, but this is rarely the case.
When Bitcoin moves sideways, it will likely:
- Cause altcoins to mimic that as traders wait for a clear sign on the direction of the market;
- Or, cause altcoins to flourish as traders look for returns in altcoins and try to get favorable trades in terms of BTC pairs.
RTo summarize, Bitcoin is the focal point of the crypto market in many ways, and with BTC trading pairs on every exchange, the gravity of Bitcoin is hard to evade.
The majority of projects will fail — some startups are created just to gather funds and disappear, some would not handle the competition, but most are just ideas that look good on paper, but in reality, are useless for the market.
Vitalik Buterin, co-founder of Ethereum said:
“There are some good ideas, there are a lot of very bad ideas, and there are a lot of very, very bad ideas, and quite a few scams as well”
As a result, over 95% of successful ICOs and cryptocurrency projects will fail and their investors will lose money. The other 5% of projects will become the new Apple, Google or Alibaba in the cryptoindustry. Will SC be among those 5%? Hard to tell but probability for that is higher than with most other coins primarily for 2 reasons: solid use case and legit team behind the project.
All of this summed up means one thing: SC might live through couple of orchestrated and, for a regular trader, completely unpredictable pumps but the majority of time will be murky sideways trading with small volume and no significant interest from the market.
Price will heavily depend on what BTC will do and since many analysts think BTC will not be making big moves in this year, it is hard to expect SC will do them either. The price will probably stagnate and record slow-moving depreciation or appreciation depending on the team activity, potential technological breakthrough or high-level partnership.
Market prediction for Siacoin price
Siacoin is a unicorn of the crypto space because of its leading role in a plausible use case that is decentralized storage. As it is gaining popularity, more people have started talking about it. Let’s check what are the market experts or crypto editorials saying.
A crypto forecast website called trading beasts predicted that by the end of 2019, SC might reach around $0.02, which can even exceed as much as $0.03.
Here comes a conservative prediction of cryptoground, where they say that by 2019 end, SC might reach $0.0158, and in five years siacoin might reach $0.0528.
CoinFan is a website that offers price forecasts for almost every cryptocurrency imaginable. By their own “custom forecast algorithm”, they predict that Siacoin might reach $0.0538 by 2019 end, and might reach $0.19 by 2020 end.
Wallet Investor is known for their pragmatic cryptocurrency prediction. They believe that SC might reach $0.0426 by 2019 end on an everage, where the maximum rate might be as high as $0.050030.
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CoinDesk Q4 2019 Review: A Year in Suspended Animation
It has been over 10 years since the creation of cryptocurrencies, and while clear narratives have emerged to justify their existence, none are decisively supported by data.
For example, charts suggest bitcoin’s use case as a store of value is taking hold among some new investors, who have been shown to hold the asset through price run-ups. However, other metrics such as bitcoin’s correlation to gold suggest that, across the entire body of bitcoin investors, most are using the asset as something far different from “digital gold.”
On ethereum, DeFi has made impressive gains, but the shape of that line and a broader decline in user numbers suggest that the “web 3.0” narrative is still in its infancy.
Released today, the CoinDesk Quarterly Review surfaces the key data, trends and events shaping crypto markets, in a 45-slide presentation format. It evaluates three different use cases for crypto across more than 25 different data sets. The results of this analysis suggest a dominant narrative for bitcoin and alternative cryptocurrencies has yet to emerge.
Readers of this report are introduced to key metrics for tracking shifts in investor interest and global usage of cryptocurrencies. These include bitcoin’s “whale” population, UTXO age distribution, exchange volumes and more.
The data-driven takeaways include:
1. Not everyone who stood to profit, sold.
Holders of bitcoin who last transacted in the second half of 2017 held through the end of 2019 despite rises in market price that would have made it profitable to sell. This suggests there is investor sentiment for bitcoin as a store of value rather than as a speculative asset. The bump in bitcoin holdings that last moved in late 2018 represents a movement of assets into a more secure form of storage by cryptocurrency exchange Coinbase in December 2018.
Coinbase’s bitcoin-fiat markets, among the world’s most popular for purchases of bitcoin in USD, GBP and EUR, have stalled since 2018. According to data from Nomics, bitcoin-fiat volume has dropped from an all-time high of $46.54 million in 2018 to $44.92 million in 2019. This market is primarily used by investors who view bitcoin as an alternative store of value from traditional currency, and can be thought of as a barometer for buy-and-hold sentiment.
2. Bitcoin ‘whale’ population remains healthy.
By the end of 2019, there were 2,100 bitcoin addresses holding more $8.5 million-worth of BTC each. The growth in these types of addresses, also called bitcoin “whales,” is a rough indicator of large investor participation in cryptocurrencies. Since 2018, the bitcoin whale population has been multiplying at rates not seen since the early 2000’s when bitcoin was trading below $100 or 1/85th of its current market price.
Off-chain activity on regulated cryptocurrency exchanges in the U.S. does not show similar signs of increased large investor participation in cryptocurrencies. Cryptocurrency data provider Skew reported a decline in volume for both the CME and Bakkt’s bitcoin futures open interest markets in 2019. These markets, unlike that of other popular cryptocurrency exchanges such as Coinbase and Binance, are designed to offer institutional investors regulated instruments for exposure on bitcoin. Institutional participation in cryptocurrencies may be lagging due to persisting imbalances in the underlying liquidity of these assets across various exchanges.
3. DeFi blooms in winter.
One of the breakout successes of 2019 was decentralized finance (DeFi) applications. Collectively, these decentralized apps (dapps) managed over $680 million-worth of cryptocurrencies by the end of Q4, according to cryptocurrency data provider DeFi Pulse. Looking at the most popular sub-category of DeFi, cryptocurrency lending, user traction on ethereum continued to climb even when market price for ETH started to decline.
In other dapp categories such as gaming and gambling, the number of applications and users decreased in 2019. Cryptocurrency data provider DappRadar reports fewer dapps and dapp users in Q4 2019 than Q1. “In general, we’re seeing a rise in the quality of dapps and over time that means fewer dapps launched and fewer dapps attracting a large audience,” said Jon Jordan, communications director of DappRadar. It would seem outside of the DeFi boom on the ethereum blockchain, other dapp platforms and use cases are struggling to grow.
For more charts and analysis, download the full CoinDesk Quarterly Review.
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The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.