The plummet has continued. The streets remain filled with blood. The value of your portfolio has most likely dropped; but, if you’ve got the capital, now is the time to add more. You can pick up some great deals on your favourite altcoins on a day like this. Last night, I dropped an extra few hundred into Siacoin. It’s a risky move, any move at a time like this comes with fairly significant risks. Not all coins will bounce back and some will bounce back quicker than others.
Nevertheless, I feel pretty confident about Sia. As a project, it certainly has its flaws but so do all projects at this point in time. For those of you unfamiliar with the project let me give you some quick background information:
Almost everyone uses the Cloud these days. Whether it’s for extra storage, or the ability to access your files remotely, chances are you have a strong use-case for including Cloud storage in your life. Currently options such as Google Drive or Dropbox are owned by a 3rd party who has access to your files, and charges a premium for storage space. The reduced privacy and increased cost is a real issue for a lot of people; you don’t want to be storing sensitive files on a server which isn’t solely owned by you.
This is where Sia enters the picture. Operating as a decentralised private cloud, Sia is able to (or at least will be able to when the project is complete) offer cloud storage that is completely private, far more affordable, and less prone to failure. People using the system to store files pay for this privilege using Siacoin, which is then distributed to those offering their spare storage space. This is all achieved through using the Sia blockchain.
The Cloud storage market is huge, estimates indicate a market size of $75 Billion by 2021 (!!!), however it is dominated by a few obvious BIG names. Thus, Sia definitely has its work cut out. Although, let's be honest, even a tiny percent of a $75 Billion market is extremely profitable! Whilst it is a very cool project with the potential to definitely hit the mainstream, I’m personally unsure whether it will. However, that doesn’t mean we shouldn’t invest! Sia has a hugely supportive community behind it, and as more people get into crypto more people will be looking for super-secure and private places to hold their information. Furthermore, the way I look at it, considering the actual potential of the project, Siacoin is super cheap right now at $0.014 on Coinmarketcap.
As I said earlier, I took the opportunity presented by this downward trend to add a lot more Siacoin to my portfolio. Not necessarily because I believe in the project, but because I believe the price will go. There are a few factors that lead me to this belief:
- The team has just released Sia v1.3.0 Beta (RC2). This Beta has already been met with appreciation by the community, and once any kinks have been ironed out I believe the price will rocket. Not enough projects are releasing products or updates, so for an undervalued product to be releasing such an important one is huge news!
- Looking at the official public roadmap there is a lot of releases planned for the next 6 months that could get investors super excited. If you speak to almost anyone in the cryptosphere they either hold a small amount of Sia or would like to. For me this is a huge reason to invest. If Sia stick to the roadmap (and there’s no reason to suspect they won’t) more people will be wanting to jump on the ‘gains train’. Getting in right now, whilst the price is cheaper than it should, exposes my investment to maximum profit potential. People FOMO in like crazy with the cheap coins because even a small spike in price means huge ROI; because there is an actual reason to invest this effect will be multiplied!
- Sia is also releasing a 28nm, full-custom ASIC. I just want to state here that I’m not sure if this good or bad for Sia in the long-term; just look at the impact ASICs have had on Bitcoin. But for the short-term this is great news. Especially for us investors! ASICs will increase the mining potential of Siacoin, theoretically speeding up the network. Just one ASIC has an estimated hashrate of 100 GH/s, and has the capacity of 100 GPUs. The publicity that goes with it certainly can’t hurt the project either!
Talking strictly about the investment decision rather than the project, I think Siacoin has a lot of potential. Whenever I make new decisions I look for reasons why the price would increase over the time period I’m intending to invest. I’ve incorporated my CryptoFolio matrix into the analysis carried out for this decision and I would classify the move as a House Fly; a short-term investment with high potential exposure to profits. The roadmap looks very positive for the next 6 months, with multiple catalysts for bull runs dotting along the path. I think it’s important to set investment goals for each move so that snap, emotion-based decisions aren’t made further down the line. I’m anticipating closing this position within 4-5 months or once I’ve reached around 300% ROI. Whilst this seems an incredibly high figure, almost ludicrous given the current state of the crypto markets, I don’t think it is entirely unreasonable. The project is currently highly undervalued, and I believe this will change drastically over the next 6 months.
What’s your position on Siacoin? Do you hold any? Let me know in the comments below, I’d love to hear your thoughts on what I believe is not only a very interesting project, but a great investment opportunity!
I appreciate GIFs are all the rage nowadays, and I found one that pretty much sums up my expectations of Siacoin in the next few months.
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This is part of a super regular segment I'll be doing, to make sure you don't miss out click through to my profile and follow me! Let me know in the comments below if you do, I'd appreciate it! Also, got any comments, questions or suggestions fire those at me too!
Disclaimer: For legal reasons, this is not intended as advice, I'm happy playing with fire with my own money, I do not by any means suggest you do the same moves I do. I will, however, be posting them, and the reasons here, and if you choose to follow me, then sweet!