The primary reason - there is no reason for it to increase in value.
Consider the following in Sia Storage Services (as they exist today) June 2017
- The Sia Coin is used to BUY decentralized storage that is advertised to be cheaper than other centralized networks
that use the US Dollar. Key word "advertised as cheaper" than other services. Yet Sia is not market ready yet- and in some cases is not cheaper based on the way the contracts and renter pairing works... (see the article written "SIA COIN, Bad Contracts + High Fees = Major Renter Losses" )
Other considerations:
- The prices on the Sia network hosts MUST remain lower than these other US Dollar based Cloud providers (Amazon, Drop Box) for each TB purchased.
- The coins are priced & used at the host rate (which is a race to the bottom) for cheapest most dependable TB/ month price.
- Sia Contracts are a minimum of 13 weeks long. This is 1/4 of a year long which doesn't really promote circulation
- In fact hosts must carry collateral and renters must hold an allowance to keep the services alive
*Unused coins can be forfeited by the renter by cancelling the contract and allowance at any time
*Renter data can be lost if their wallet goes down prior to the mid contract renewal- placing demand on re-buying cheaper coins in the exchange- or just simply not even buying new coins at all (if prices are not validated)
Yes, fractional pricing can be used, but hosts are looking at this as a revenue generating service - not a fractional revenue venture.
- Also if the speculation coin price grew extremely high- the hosts could bail to cash out. Leaving data to the ether.
- Host collateral is rumored to be "burned" (not returned to the host- to an undisclosed public address)- also another demand on hosts to rebuy for cheaper coins.
Given the serivce Sia is attempting to offer, it does have a value - and that value would be Decentralization. The hosts are the VALUE. After all, you can store data on a decentralized cloud network, and no one will know how to access your data except you. This is the best way to keep safe data no doubt. But the price of the coin may not realize any increases because the existing funnels of Sia are moving coins down the drain due to beta interface and kinky code bugs for renters...and forcing these renter/buyers to seek the cheapest tokens they can find to use this service, instead of circulating the coinage inside the Sia ecosystem in a closed system manner.
It is my opinion Sia is damaging itself by making open-air comparisons to Amazon and Dropbox. This is due to the fact those entities are not just centralized, but they are also using centralized payment systems that reply on centralized currency like the US Dollar and other centralized fiats. Instead Sia should be decoupled completely from the association of competing against centralized entities altogether- and charge what the the system is providing - SECURITY with Data Redundancy and without the red tape.
Sure token prices can increase ( only on a speculative basis) not necessarily on a consumer level who uses and demands lower and secure service on the Sia Cloud. Also a token price increase does not not equate to the increase in profits for hosts (given the items mentioned earlier). Will Sia realize its true value and re-navigate in time to save itself? Or continue to steer into these other offshoot projects that do not seem to have the consensus of the Sia community?
Establishing Trust to early adopters is a requirement to fuel the value Sia has, but if the early adopters & users of Sia Services are on shaky ground- where does that leave the speculation of the coin?
