If you want to invest in Sia, buy Siafund, not Siacoin.

in cryptocurrency •  8 years ago  (edited)

Sia, a decentralized storage provider with its own token called "Siacoin", has had a huge run up in value lately. Sia has gained over 200% in the last week and thus has decisively entered the top 20 cryptocurrencies, dethroning long time storage champion MadeSafe on its way.

Sia

With this huge jump, many new investors will want to jump in out of fear of missing out. Many will naively believe that the best way to invest in Sia is to buy its Siacoin token. These investors would be wrong, and heres a quick rundown why.

  • Siacoin is the token that will be used by customers to buy storage.
  • There is a secondary coin offered by Sia called Siafund.
  • Siafund holders will earn a percentage of all Siacoin spent in the Sia ecosystem.

Further details regarding Siafund:

  • There are a total of 10,000 Siafund shares in existence, a number that will not change.
  • When a customer buys storage using Siacoin, 3.9% of that transaction will go to Siafund holders.

If a customer spends 100 Siacoin for a storage contract, 3.9 Siacoin will be divided amongst the 10,000 Siafund holders. This means that if you hold 1 Siafund, you would gain 0.00039 Siacoin from this transaction. A further reading of how Siafund and Siacoin interact can be found by reading the Sia Whitepaper

As you can see, Siafund is the asset that will reward holders the most should Sia explode into the mainstream.


Edit: I have put up a guide on how to buy Siafund.

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Siafund trades at 1.5 BTC per share. I think this is too much

https://market.bitsquare.io/?market=sf_btc

i think it expensive

  ·  8 years ago (edited)

Been following Sia since late 2015. It's an interesting technology, but utilization has been negligible and hasn't changed much since then. Check it here:
http://siapulse.com/page/network

1094 TB is available on the network, but only 2.33% is used - that's approximately 26 TB, a couple of HDDs really. What's even more interesting, that number has been the same for more than a year now, always hovering around 20 TB. Perplexing, I am still not certain are there some technical difficulties or the demand for decentralized storage solutions is simply extremely low.

Yeah, I think it's too complicated for an average person to use and the price fluctuation of SC is too much for a company to calculate cost basis for their monthly usage.

Thanks for the tip.
Upvoted and followed.

im following

Id love to know how to get on the slack

There is a link for their main forum here

https://forum.sia.tech/topic/112/sia-fund-questions/2

I guess you can ask them there to give you an invite

The good part of siacoin is that it can be mined though, while the siafund cannot.

This Sia coin is good.. but I don't know how to implemented it

where would we find Sia fund?

You would have to go to their slack and then to the siafund channel, Ill probably make a guide tomorrow or something

I found it. It's at Bit square.

Yeah but bitsquare has very low liquidity. People on the slack haggle with individuals for price and is more active.

Thank you.

damn dude! Wish I had jus read ur post earlier! my last post is looking all dumb now lol. Thanks for the wisdom!

Sia what? Ok, SiaFund, i was never aware of this. Got to start reading whitepaper more often. It would also be nice if any Whitepaper had a audiobook style available so we can just listen to them while driving..

Nice post. I was about to post a similair thread. In my opinion blockchain is here to stay. A proper investment for the long term. We do need to look better at the insights of every coin. What team is behind it, is there any management. How strong is the product, is there any product at all? I found this great website: https://www.coincheckup.com I'm using this site that gives in depth reports on every tradable cryto in the market. On: https://www.coincheckup.com/coins/Siacoin#analysis To see the: Siacoin Research report

Here's a simple guide on buying Siacoin: https://chaseohlson.com/how-to-buy-siacoin/

I somewhat agree. Holders of siafunds (SF) will be the big winners in this game. However holders of siacoins (SC) will also find that their coins will increase in price due to demand.

The looser is the hosts - as they will always just get 2-4 $ /TB/Month.

Really good post, I had no idea that Siafund existed! I'll make sure to read up on it from your next post :)