Can We Profit from the SiaCoin (SIA) ASICs?
The first ASICs were released this week for the SiaCoin (SC) from Bitmain in a surprise announcement of the Bitmain A3. Not only were the pre-orders unexpected, the announced shipping date was within 10 days of orders. While the SiaCoin have preached ASICs would improve the network through increase hash and bandwidth for highspeed data storage, many were frustrated in the community. With the SiaCoin Obelisk ASIC set for release before June now upended by Bitmain, what can we now expect for the value of SiaCoin. More importantly can we profit from the recent news?
SiaCoin is building a decentralized network for large data storage through the use of smart contracts to harvest unused hard drive space on computers around the world. The hopes are “to liberate the unused bits of the world and construct the largest storage superserver on the planet.” For large data storage to be usable will require a much faster network than can be provided through CPU/GPU mining which means Application Specific Integrated circuits or ASICs are required to realize the goal of competing with Amazon, Google and Microsoft for data storage.
As part of the next generation blockchain economy, SiaCoin (SC) has grown but still remains on the fringe of well known crypto projects. While Ripple (XRP), Monero (XMR), Litecoin (LTC), Cardano (ADA) and NEO grab the headlines and sit at the top, Bitmain chose the 29th largest coin on CoinMarketCap to spend millions to develop specialty chips and an ASIC device. With Bitmain as the largest ASIC developer in the world, many believe the commitment means the Sia project is about to take off.
There are many different network protocols for crypto coins to run on. Scrypt, SHA-256, Ethereum ERC-20, and cryptonight are the largest which make up many of the big names in crypto. Litecoin, Bitcoin, Ethereum, and Monero all run on these protocols. Blake(2b) is new on the scene with the only known coin being SiaCoin (SC). While other blake coins exist, they run on different protocols from blake(2b) meaning the Antminer A3 can only mine SiaCoin unless other coins are launched. Verge on blake (2s) and decred on blake (14r) are two other well known blake coins but neither can be mined with the Bitmain device.
The belief among SiaCoin supporters is that the project is on the verge of delivering on the promise of delivering storage for 1/10th of the price of Amazon, Google and Microsoft. Large corporations looking to save money are only willing to switch if there is clear advantage and by cutting cost 90% to move data to encrypted high speed network sounds quite appealing.
How To Profit from the Antminer A3?
We have precedent for the launch of the A3 on the Dash network with the Antminer D3. Released summer 2017. Bitmain sold what some estimate to be well more than 100,000 miners. The resultant explosion of Dash difficulty upset the large swath of the community as they felt Bitmain oversold which guaranteed never to pay back the price of the miner. So far we have seen the network stabilize and mature with increase in price of the Dash coins from $100 to today’s $855.
The above chart shows how the Dash price and volume increased despite the release or over selling of The Antminer D3 ASIC. While the price waffled in the fall it took off once more D3s hit the market and people realized ASICs would not end the network. At this point many D3 owners have not yet mined the purchase price of the miner which is key to how to look at the Antminer A3 launch.
The Better plan may be to purchase SiaCoin (SC) rather than investing in the A3 or obelisk miner. As the Sia dev team has said, ASICs will help the network grow, secure and add customers which bring money. As we know, crypto coins trade on news and rumors making Siacoin at #29 prime to increase in price with any major customer or partnership adds. The next 2 weeks should bring the first batch at A3s to the network which could affect both price and volume as coins flood the market.
Buy SiaCoin (Sia)?
Similar to Dash, the price of SiaCoin (SC) has decreased some from the recent recovery following the news of the new ASICs hitting the market. This could present an excellent chance to get into the market prior to the network growth to come. Growth of the network will come over the next 2 weeks as the first block of miners hits. If the Sia team is correct, they will be able to test the increased speeds of the network. Part of the medium and long term roadmap are to share larger files (>10TB) both on the network and with non-Sia customers. ASICs just may bring that goal to reality.
Of the next generation blockchain economy SiaCoin (SC) is the second coin to get an ASIC to the network following Dash. Ripple (XRP) uses centralized servers to process transactions. Crypotnight coins like Graft and Monero (XMR) do not have ASICs (yet) although it has been long rumored to be coming. The launch of the D3 for Dash should give confidence of the market for SiaCoin and supporters. Those looking to invest should do so following research and investing with caution. Check in with TheIndependentRepublic.com for more news.