The Siacoin (SC) is the token used in the smart contracts to pay the hosts. When a smart contract is created, the renter and the host both put Ssiacoins into the contract. The host gets the Siacoins only if they still have the data when the contract expires.
Siacoin is subject to speculation and there have historically been large price movements. Because the host adds collateral to file contracts, the host assumes most of the risk of a volatile price. Price increases can only benefit the network, but price drops can impact the host’s revenue.
Severe price drops, where the price cuts in half or worse, can put files at risk of being dropped by hosts, but even large price drops such as 25% do not put data at risk.
If you take account all the hard drive waste we have that lies useless all over the world, the price of Sia cloud memory being fraction of the today’s standard and income that can be easy enough to be generated by anyone just by connecting computers to the network.
The developers of Sia have a clear vision of next few coming years of the technology. Taking into consideration that world’s 90% of the data is produced in last 2 years, we can imagine the amount of data to be produced in next few coming years.
Buying Siacoin means that you buy a future on a peer-to-peer storage network called Sia. If Bitcoin replaces gold bars, Siacoin replaces hard-drives. Siacoin is a storage currency that can be considered as crypto-commodity with strong fundamentals and P-o-W mineable.
I personally believe that the Sia project has a bright future. Therefore, I acquired Siacoins and added them to my long-term cryptocurrency investment portfolio.