Siacoin - Shitcoin Review
on Jul 10, 2018
All of your nude pics need to be stored in a secure, safe and reliable place.
So, why not turn to a high risk, decentralized, un-insured solution? Lol
The blockchain space is highly competitive, particularly relating to data storage.
One player in the game is Siacoin…
Let’s dig in.
Siacoin (ticker: SC)
Mid-Tier Shitcoin (approaching low-tier)
Wtf is Siacoin?
Siacoin is a decentralized cloud storage solution. They are competing with giants like Amazon, DropBox, Apple, and others.
There are two participants in the Siacoin world: hosts and users.
Hosts offer storage and computing power to house users’ data and are rewarded in SC for their work. Hosts can set their own fees, advertise their reliability through a ‘host score’ (https://siawiki.tech/host/scoring_system), and create insurance agreements with users in case they (the host) goes down, or loses the data.
This shit is pretty flexible, hosts and users can set whatever terms suit their needs. So a user can reward a host with more SC, in addition to the storage fees, as an incentive to ensure uptime and reliability. Hosts can also deny to house a user’s data for any reason (i.e. illegal shit, nude shit, ethically questionable shit).
Why tf do we think this will be a low-tier shitcoin?
It’s not that the idea of decentralized data storage is bad. It’s that the practicality of the business is shit. Existing centralized cloud storage solutions are actually reliable, cheap, and work smoothly. Companies are profiting well, and users are generally satisfied. Compare this to the banking sector, supply chain and many other niches that blockchain is targeting, we (and many other professionals) don’t see the huge hype around distributed cloud storage.
So, taking an existing business model that works, then making it decentralized (rely on miners, potentially increased fees, more expensive than centralized offerings, and a clunky user-interface) seems a bit forced.
ALSOOOO….there is Obelisk. Obelisk is their ASIC rig that they were touting. They were hyping it super hard in the summer of 2017, only to come out with a statement that they will not be available for like another year or some shit. It killed the market and community sentiment towards them. One of the worst marketing moves we have seen in the space, and that is really saying something.
Lastly, they claim to ‘not care about price,’ and only focus on product. Really? WTF? Investors need to have faith in projects, be patient, and HODL for many years, but when a team claims to not care about price, then the reality is that people will not care about your project. They tried to double-back on this, but what was said was said.
Do they realize that the only reason crypto helped decentralized networks take off is the incentive that the coins offer? The promise of profit is why this shit is booming...decentralized tech has been around for many many many years, since the late 80’s or some shit.
So..sometimes they come off ignorant from a business point of view, and that sucks.
Who tf is behind this shit?
Not much to say. Their CEO is David Vorick. Acoording to his LinkedIn he was a Software Developer at IBM for less than a year, got his Bachelors in 2014, and just started Siacoin (Nebulous, the holding company). So...this seems to be his first venture, and we'll have to see how he does.
In summary, distributed data storage systems are a good idea, but probably a shit business and investment. The Siacoin team has said that they do not care about price action of their coin, which means they don’t care about the incentive to the miners who help keep their network alive. Currently mid-tier due to hype and community, but on their way to low-tier. Let’s see!
Hope you learned some shit.
- Mike and Aaron