Siacoin is fast gaining popularity in the cryptocurrency world and interested crypto bulls are out looking for Siacoin price prediction 2018. But here’s the catch: Siacoin is not your typical cryptocurrency. Far from it, actually. So before we get to breaking our Siacoin price forecast, expounding its true nature is imperative.
Siacoin Price Prediction 2018: Betting on Siacoin’s Future
The Siacoin-to-USD price is gaining some momentum this week, raising questions if a $1.00 Siacoin value could be a possibility.
Let me first put that into perspective. At the current price of $0.0043, you could buy a million Siacoins for just $4,300. By comparison, one Bitcoin is currently trading for over $7,000.
So if Siacoin’s price does hit $1.00, your little investment turns into a million-dollar jackpot. You become an instant millionaire!
My colleague here believes that the said possibility seems unconvincing when you look at the SC price chart. And rightly so; the downtrend he has identified on the Siacoin price chart cannot be ignored.
Chart courtesy of TradingView.com
The SC price is currently hovering over $0.0043. It is down from $0.0051 the same day a week ago. If you go further back to early summer of this year, you can see a consistent drop in price. The SC-to-USD price cratered soon after hitting its all-time highs of $0.02 apiece. On a cursory look, this doesn’t paint an optimistic Siacoin price forecast for 2018.
While the downtrend is too vivid to be overlooked, there’s a flip side of the coin I cannot ignore. The steep drop in price has created a classic “buy the dip” opportunity for an optimist trader looking for a chance to get on the Siacoin bandwagon.
But let’s be honest, trading is for the daredevils. Many of us do not get the nitty-gritty of technical analysis. The criss-crossing multicolored lines etched across the Siacoin price chart are overwhelming, to say the least.
So I’m focusing on a more long-term Siacoin price forecast–one that’s built on fundamentals. But before I get to my Siacoin price prediction 2018, here’s a quick refresher for those new to Siacoin investing.
What is Siacoin?
Siacoin is a cryptocurrency that can only work on the Sia network. I’ll get to the latter shortly. But first, let’s establish that although it is counted with other cryptocurrencies, Siacoin is not an “altcoin,” or simply put; an alternative to other cryptocurrencies. Let me explain why.
Unlike the first and most sought after cryptocurrency, Bitcoin, whose origin remains pretty cryptic, Siacoin’s creation has been more transparent. The founders of this cryptocurrency had a problem in mind and Siacoin turned out to be their solution.
Here’s what supposedly happened: The founders of Sia were looking for a way to put the excess storage available on their native hard drives to good use. They found a way to earn money on it by renting it out. The problem was to decentralize this access storage and make it cheap and secure so people were willing to rent it.
Ta-da! In came the idea of Sia, a decentralized cloud storage solution about 10 times cheaper than most other cloud storage providers.
Sia founders used the same “blockchain” technology which Nakamoto used to build Bitcoin. So, by default, Sia came with the anonymity that made Bitcoin such a hit in the crypto-world. Sia users knew that, just as they could transact in Bitcoin anonymously, they could likewise use Sia to store their data in the cloud, away from all prying eyes.
But for exclusivity, buying and renting storage space on Sia required Siacoin–the only currency the network accepted. That’s how Siacoin made it to the cryptocurrency universe.
How to Buy Siacoin?
Now comes the catchy part: you cannot outright buy Siacoin. You must first buy some other cryptocurrency–say, Bitcoin–which you can then exchange for Siacoin. This is why I wouldn’t call Siacoin an “altcoin.”
Buying Siacoin is easy. You download the Siacoin wallet from Sia’s web site and save your secret passkey. Then, you use some other cryptocurrency to exchange it for Siacoins on an altcoin exchange like Bittrex or Poloniex. Finally, you transfer your Siacoins from the exchange to your wallet.
What is Siacoin Mining?
It’s nearly the same as Bitcoin mining. You solve some complex mathematical equations and in turn provide power to the Sia network. For your laborious work, Sia rewards you with Siacoins.
Mining is easy to understand, given you have some background in tech. If you have a fast PC fitted with a high-end GPU and have the money to pay for the extra charge on your electricity bill, you’re all set. Just download a Siacoin miner and get started.
Otherwise, if you don’t want to mine, you can always stick with trading or investing in Siacoin.
Siacoin Price Forecast: Should You Buy Siacoins?
Now comes the real question: how bullish am I on my Siacoin price prediction for 2018? Can the Siacoin price really hit $1.00?
That’s a possibility I cannot disregard and here’s why I say so.
Unlike Bitcoin, which is being touted as an alternative to fiat currency, Siacoin has an altogether different use.
Siacoin’s success is tied to the cloud network Sia. And let’s all agree with the fact that the latter offers a very valuable utility.
The decentralized cloud-based solution that Sia can deliver has the potential to loosen the oligopolistic hold that cloud computing giants like Amazon.com, Inc. (NASDAQ: AMZN), Microsoft Corporation (NASDAQ: MSFT), and International Business Machines Corp. (NYSE: IBM) have over the industry.
The prospects of this blockchain-based disruption already look solid, and if enough people adopt it, the idea could see the light of day sooner rather than later.
For now, albeit moderately, crypto bulls are showing interest and trading this cryptocurrency. So far, their modest trades have kept volumes fluid on cryptocurrency exchanges, which is, nonetheless, a healthy sign.
For me, Siacoin passes a fundamental litmus test. It offers a unique utility. Thus far, future growth in its cloud-based niche looks promising.
Although, I’ll be fair. I do see one looming threat. Since you need Bitcoin or Ethereum or some other altcoin to buy Siacoin, it’s important we consider the future potential of cryptocurrencies as a whole.
Yet, the chances of the whole crypto-universe crashing and vanishing overnight seem improbable.
Moreover, let’s not forget that there’s a reason why volatility remains high and liquidity remains low in Siacoin trading volumes. It’s true that Siacoin may still have a long way to go before it receives mass acceptance.
But, like Bitcoin, this may no longer be a matter of “if,” but “when.”
I have to say that Siacoin at $1.00 is a possibility I’m not willing to ignore.