There are two types of crypto investments. There are short-term risky cryptos and long-term stable ones. Short-term risky cryptos are those that may not have a strong use-case, but they have the potential to pump in the short-term, for whatever reasons, including a listing on a new exchange. Long-term crypto investments are those whose long-term prospects are strong, irrespective of current market dynamics. They have a use-case that transcends day-to-day price movements. One crypto that falls in this category is Siacoin (SC). Several factors place Siacoin (SC) in the category of long-term crypto investments that could hold value over the years.
- A practical use case
Siacoin (SC)’s use case is very practical. It decentralizes data storage on the cloud, by distributing it to thousands of hard drives all across the world. This makes data storage safer and more reliable. This is quite a practical use case because cloud storage is a big and growing market. It is estimated that the cloud storage market will be worth upwards of $88 billion by the year 2022, with a growth rate of about 22%. What’s even more important is that Siacoin already has a presence in this market. It’s not a matter of speculation of what Siacoin can do, it is already doing it. Siacoin already stores 224TB of data, with over 597 providers. This goes to show that it already has a footing in this market, which makes it a solid long-term hold.
- It has an edge over centralized systems in the market
Having a use-case in an industry is just the start. For a crypto to have good long-term prospects, it needs to have an edge over existing systems. As a matter of fact, this is the biggest challenge for most blockchain projects. Most of them have a huge problem justifying their need in the market, when compared to centralized systems. Siacoin is quite different. It has a real and justifiable need in the market. It’s justifiable in terms of security and cost. Unlike centralized cloud servers, Siacoin is decentralized across different user computers all across the world, which means that there is no single point of failure with Siacoin. Data is also encrypted, which means that no one, other than the owner, can access it. On top of that, Siacoin (SC) is way cheaper than centralized cloud storage services, which is a huge incentive for people to use it. This is an edge that will over time give it dominance in this market
- It has first-mover advantage in this market
One may be wondering, what stops other blockchain projects from coming to this market, and offering a similar use case. Well, in the long-run, many will come up, but Siacoin has already established its presence in this market. In most industries, the first mover tends to dominate the market, while the rest share the remaining market. Siacoin has grown its market presence with a fast growing number of providers. This gives it the network effect that will see it dominate the data storage market going into the future.
On the basis of the above, it is clear that Siacoin will have longevity and dominance in the market. How high can it go? Well, that’s up to the markets to decide. One thing is sure though, it is pretty much assured of long-term consistent growth as the data market grows. It’s one of those cryptos that will always be there, no matter the ups and downs in the market.
Siacoin (SC) currently ranks 37th with a market cap of $250 million. In intra-day trading, it is one of the best performers, and is up by over 15%.