As the crypto bear continues to bite, many projects are coming under pressure to justify their existence. Investors are no longer throwing money at random projects like they did last year, they are now looking at their fundamentals. Essentially this means that the next crypto bull rally will be driven by solid projects, as the weak ones die off. One project that is set to thrive in the long run is Siacoin (SC). It has the fundamentals to thrive, given that it solves a real need, and in a fast growing industry.
Siacoin is focused on cloud services market, a market that is worth upwards of $150 billion. According to a research by Gartner, the global cloud services market is set to grow by 21% in 2018. This means that if Siacoin can control just a smalls segment of this market, it would have a huge intrinsic value, valued in the billions of dollars.
There are a number of factors that support the penetration of Siacoin in this industry. The first one is security. Hackers are becoming more sophisticated as can be seen in the recent wannacry virus that held major corporations at ransom. Such attacks make all centralized data centers that have a single point of failure risky, especially for holding sensitive information. This gives Siacoin (SC) an edge in the market because information is decentralized and stored in multiple computers all across the world. This makes data safe, since it is almost impossible to hack it, unless you attack the internet itself. This feature alone gives Siacoin (SC) the leverage to grow relative to the centralized cloud services providers.
Secondly, Siacoin is more affordable than traditional cloud service providers. Storing information on the Siacoin blockchain-based cloud costs as low as $2. That’s way less than what traditional cloud service providers charge for their services. Given that businesses always seek to cut on costs, as part of their revenue growth strategies, it then follows that in the long-run, many will shift from traditional cloud services to Siacoin. There is simply no justification for a business to stick with an expensive cloud provider, when they are not even as secure or efficient as a decentralized service provider such as Siacoin.
With all these factors at play, it is clear that Siacoin could easily capture up to 20% of the fast growing cloud services market. This would easily give it an intrinsic value of over $20 billion, by conservative estimates. This will ultimately reflect in the value of Siacoin (SC), and make it one of the best performing coins in the market. This will not happen in a day, or in a few months, it takes a long-term approach to the market, to see the potential of this coin. In a few years, Siacoin (SC) coin could easily be a top 10 coin. There are real fundamentals supporting it, as opposed to a good chunk of the market, which is made up of glorified white papers.