Siacoin stands as one of the more famous cloud storage markets in the blockchain space, also allowing for cost-effective and prompt transactions in oppose to the traditional way of sending cross-border payments, like almost any digital asset in general.
However, although Siacoin is looked upon as a rock-solid investment in the long run with the presumption of reaching 1$ per one SC by the year of 2020, there are some strong arguments that state that the value of Siacoin is highly dependable on the utilization of the SC network.
What that means in the term of a general evaluation of SC as an investment, and is Siacoin able to reach the value of 1$ in the long-run as regarded upon as a long-term investment due to pay off as estimated by 2020?
How the Value of SC in the Market Strongly Depends on the Utilization of the Network
Siacoin in many ways stands as a blockchain-inspired version of famous centralized data storage services like Dropbox, created with the idea to provide a centralized and much cheaper solution for data storage rental with the ability to pay for services in form of SC which represents the native token of the network.
The main idea, as with any other use case within blockchain technology, is to diminish the presence of third parties, that way providing a decentralized experience while offering more value at lesser rates and fees.
This alone can make Siacoin a favorite choice of anyone looking for a perfect but cost-effective cloud storage marketplace with direct exchanging of value between only two parties where one is offering redundant storage space and the other is paying for the needed storage in form of SC units.
The top price that Siacoin achieved back in January is marked at 0.090$, which might be lower than expected for some SC investors, however, here lies the key to realizing how the frequent utilization of the network could eventually improve the value of SC.
Siacoin data storage providers are mainly located in Western Europe, the United States of America, as well as in South Korea, which makes Siacoin network a perfect combination of the biggest cryptocurrency centers in the world.
However, that doesn’t seem to be enough to push SC towards the milestone of 1$ per one unit as predicted by many enthusiasts and analysts that believe that Siacoin is exponentially growing as the time passes by.
The case might be different as Siacoin is said to have the unlimited supply of coins, which means that if the number of units in the supply is growing and the market cap remains the same or is changing slowly, the price per one SC will consequently drop over the time.
That further brings to a conclusion that one of the rare factors that can actually influence the progress of SC in the market towards the price of 1$ as predicted for 2020 is enhancing the utilization of the data storage network that it represents.
This might sound easier than it actually is as if we take, for instance, the example of the capacity that its centralized opponent Dropbox has, Siacoin outside the fact that it stands for a decentralized, much effective, safer, and cheaper solution, loses its advantage.
While Dropbox is currently operating with around 500PB in oppose to the capacity of 4.5 PB with 160TB being used in the Siacoin data storage marketplace. Additionally, Dropbox has dozen million users that are paying for its services, alongside with 300,000 different business storing data with this centralized service.
These facts drive us to a conclusion that Siacoin must increase its overall capacity aside from having an amazing capacity as a blockchain-based project, in order to be able to pose as a giant of data storage within the cryptoverse and outside of the blockchain space.
Siacoin is Doing Well despite the Frequent Negative Trends in the Market
In case you take a look at the SC charts, you will see that Siacoin has somewhat a stable pace of growth in oppose to its top 40 peers. That is how despite the frequent dips, SC is holding on, on October 16th with the latest increase of nearly 3% against the fiat in the last 24 hours.
Additionally, SC jumped by almost 30% in the last two months, as well as rising against the dollar by around 20% in the course of the last 30 days. YTD chart is also showing a positive return, having Siacoin up by over 57%.
Although Siacoin seems to be holding on pretty well despite the frequent dips, it seems that the value of 1$ and potentially beyond the initial milestone is able only in the case of an increased adoption of its data storage market.