Users have long been interested in alternative mining methods. The first to occupy this niche back in 2014 were the developers of Burstcoin, a cryptocurrency based on blockchain technology with a PoC (Proof-of-Capacity) algorithm, which requires the use of free space on the HDD for the system to function.
Currently, four more cryptocurrencies can be mined on hard drives:
- SiaCoin;
- Storj;
- Filecoin;
- Chia.
Figure 1. Mining Sia on a home laptop
Advantages of mining Siacoin SC on HDD:
- relatively low cost of capital equipment;
- low requirements for other components - processor and video card;
- low energy consumption;
- minimal heat generation;
- compactness of devices;
- ease of assembly and configuration.
But there are also negative aspects - the service life of hard drives is significantly lower, and, accordingly, their liquidity in case of need to replace old equipment with new one. Also, the reward for this type of mining is lower, as is the cost of the mined cryptocurrencies.
Helpful advice: when choosing a disk for mining, look not only at its capacity, but also at the resource for rewriting - the higher the indicator, the longer the device will last.
general characteristics
Sia is a platform designed for cloud data storage. It is heterogeneous and brings together people from all over the globe, their computer hard drives forming a storage space that can be used by any Siacoin owner. Rent is carried out as follows:
- The owner of siacoins on the official website of the company enters into a contract for storing any information (smart contract).
- Full information about the rental conditions is stored in the Sia platform blockchain.
- Payment for storing Siacoin information is made only after the rental period has come to an end. If the information was lost for some reason, payment will not occur.
Anyone with free hard disk space can donate it to the Sia system for storing files. Payment will be made using the Siacoin cryptocurrency. Its quantity depends proportionally on the size of the hard drive being handed over. The minimum fixed payment for rented space is 30 thousand Siacoin.
Data protection occurs using:
- random combination of concluded contracts, their coding;
- decentralization, encryption of information;
- cryptographic proof of storage, individual for each user.
Encryption of information is carried out by the people posting it. This measure prevents possible surveillance of the movement of stored files over the network.
Siacoin Mining Hardware
The tables below show the average mining performance on various GPUs. The numbers are based on anonymous miner data collected by the Sia system. You shouldn't expect 100% accuracy, but these numbers should give you a rough idea of how mining works on different systems.
The “Performance” column indicates how many millions of calculations the graphics processor performs per second (this parameter is measured in megahashes per second or Mh/s). The income generated by a video card directly depends on its performance. In other words, under equal conditions, a GPU with a performance of 2,000 Mh/s will mine twice as many tokens as a GPU with a performance of 1,000 Mh/s.
For each GPU, I gave as an example the video card where this processor is installed, but keep in mind that one processor can be used by different manufacturers in different video cards.
NVIDIA video cards
| GPU | Productivity (Mh/s) | Example |
| GTX 660 | 300 | EVGA GeForce GTX 660 |
| GTX 670 | 400 | ASUS GeForce GTX 670 |
| GTX 970 | 895 | EVGA GeForce GTX 970 |
| GTX 980 | 1,290 | GIGABYTE GeForce GTX 980 |
| GTX Titan X | 1,300 | EVGA GeForce GTX TITAN X |
| GTX 980 Ti | 1,540 | GIGABYTE GeForce GTX 980Ti |
| GTX 980 Ti Hybrid | 1,725 | EVGA GeForce GTX 980 Ti |
| GTX 1080 FE | 2,190 | EVGA GeForce GTX 1080 Founders Edition |
AMD video cards
| GPU | Productivity (Mh/s) | Example |
| R9 270X | 635 | Gigabyte R9 270X |
| R9 380 | 750 | ASUS STRIX Radeon R9 380 |
| HD 7970 | 790 | Sapphire Radeon HD 7970 |
| R9 290 | 1,050 | Sapphire Radeon R9 290 |
| R9 290X | 1,200 | Sapphire Radeon R9 290X |
| R9 390x | 1,200 | Sapphire Radeon NITRO R9 390X |
| R9 Nano | 1,600 | XFX Radeon R9 Nano |
| R9 Fury X | 1,800 | XFX RADEON R9 FURY X |
| R9 295×2 | 2,250 | Sapphire Radeon R9 295X2 |
I do not recommend purchasing a graphics card solely for the sake of mining Siacoin. Your earnings are determined by the market value of Siacoin and the number of active miners on the network. And these indicators can change dramatically at any moment.
However, if you were already planning to buy a new video card for your own purposes and you want to find an option that will allow you to mine Siacoin tokens, then the table above will help you make your choice.
Update (June 30, 2022) : On June 23, Sia announced an ASIC miner for the Siacoin cryptocurrency called Obelisk, which is expected to increase the performance of any graphics card by 100 times. Obelisk should hit the market between March and June 2022. Experts note that as soon as Obelisk begins to be widely used, mining Siacoin tokens with simple video cards will no longer be profitable. Therefore, if you are going to invest in a new GPU with the expectation that mining income will cover this investment, keep in mind that you only have time until the Obelisk miner is released.
History of origin
The cryptocurrency was invented by the developers of the Sia network - David Vorick and Luke Champin. Young IT specialists began developing the project in the fall of 2013. In a year and a half, young people managed to create a platform for storing digital information that does not have a center and has a high degree of security. The system was launched in the summer of 2015. She immediately won many fans from all over the world, which attracted large investors to the project.
Siacoin was invented to pay hard drive owners who provide storage space for information. Currently, the company that owns the platform employs many major specialists involved in coding and storing information.
Latest news about Siacoin
The developers of the decentralized cloud storage Sia announced the successful completion of a hard fork, as a result of which the network consensus algorithm was changed and the possibility of mining using ASIC devices produced by Bitmain and Innosilicon was blocked.
Hard fork successful! from siacoin
The planned hard fork took place at block 179,000. This happened a little later than planned. It was originally expected that the update would be completed on October 31, 2022. However, due to a bug in the code, the process stopped at step 178,999.
David Warwick, CEO and founder of the parent company of the Nebulous project, wrote on Reddit that before the innovations take effect, it is necessary to find at least one block with maximum difficulty. According to his calculations, this could take up to 48 hours, but as a result the update took place on November 1.
After block 179,000, the network difficulty dropped by approximately 98%, allowing miners to find new blocks approximately every 10 minutes. The number of miners themselves has decreased significantly.
How to mine Siacoin
Mining a virtual coin is completely feasible. Mining is considered one of the most popular ways to earn SC. The process occurs according to the algorithm by which the Blake2b electronic currency works. The mining system is similar to PoW. In 2022, the reward for one found block could be 100–120 virtual coins. With each subsequent block, the reward becomes less by one unit. The process lasts until it reaches 30 thousand - this is the minimum price of earnings. ASIC equipment is used for mining Siacoin. It produces the largest number of hashrate units.
You can get Siacoin not only using a special system, but also using very powerful video cards. But do not forget that this method will entail large energy costs.
Photo of the Siacoin crypto farm
Where can I buy
Major cryptocurrency exchanges are available to purchase Siacoins:
- HitBTC;
- Bittrex;
- Poloniex.
SC is traded in pairs with BTC and ETH. The largest trading volume of this altcoin occurs on the South Korean exchange Upbit. However, it should not be considered as a platform for purchase, since the interface is presented in Korean, and the South Korean authorities plan to prohibit citizens of other countries from trading on local crypto exchanges.
As an alternative to cryptocurrency exchanges, you can offer direct exchange resources. One of them is the Coin Switch exchange, where SC is sold for BTC and Qtum. A quick exchange is made here, bypassing the exchange. However, you need to monitor the exchange rate, as it may not always be profitable.
Mining Software
When the platform was just launched, tokens were mined using a special software package - Sia-GPU-Miner. Currently the program is not unique. Each individual ASIC system hardware runs its own utilities, the operating principles of the software are similar, and configurations are easy to configure. As for computer systems, experienced “getters” recommend using the Linux operating system. It is best suited for setting up miners. If desired, the user can study the latest reviews of popular equipment on his own, choosing the appropriate one.
Upcoming events
For the first quarter of 2022, the creators of the Siacoin blockchain have planned a number of updates to their system, which are designed to increase the speed of contract servicing and improve ease of use. These include:
- introduction of the ability for all users to use files in free access;
- launching a file recovery tool only by using your own wallet;
- reduction of contract form files from 60 to 5 minutes;
- launching a partial download option, when the owner of the information himself determines the necessary part to be sent for storage and the procedure for such sending;
- the ability to restore files from an outdated tenant directory backup;
- UX design improvements;
- major improvements to the Sia-UI application;
- expanding API capabilities.
Other purchasing options
In addition to mining Siacoin, there are two more options for obtaining the coin:
- The owner of a server or computer with a large hard drive can connect to the platform and rent out virtual space. The reward will be the Siacoin cryptocurrency. The amount of payment depends on the space rented and the amount of time for which it is used.
- The fastest way to buy Siacoin coins is to use a crypto exchange. Currently, SC cryptocurrency can be purchased on many virtual markets around the world.
Income from mining SC cryptocurrency
For approximate calculations of profitability, you need to take average values:
- the cost of 1 TB of equipment is $35;
- the cost of 1 kW of electricity is 0.05 dollars;
- the total cost for 1 TB of provided equipment, including maintenance and traffic, is 470 SC (about $5.90 at the rate of 1 SC = 0.013 USD).
Obviously, with 100% employment and such a cost of equipment, the payback period will be at least 8-9 months. That is, by initially investing $1,000 in the purchase of HDD drives (about 30 TB of space), under ideal conditions you can receive up to $120 in profit monthly. On average, 1 TB of hard drive memory consumes 8 W per hour, which is 6 KW or $0.3 per month. For a small farm with 30 TB, this amount will be about $10. The SC rate has remained mostly at $0.002 since launch, indicating additional risks when investing in Sia mining on HD.
Figure 9. Market dynamics of SiaCoin
How to purchase and where to store
It is best to purchase Siacoin using the services of legal digital exchanges. The most reliable and stable are considered:
- Bittrex;
- HitBTC;
- Poloniex;
- Binance
How to make a purchase and where to store
The largest number of transactions with cryptocurrency takes place on the Binance online service. During a trading day, about 20% of global trade transactions are carried out there. SC cryptocurrency is also available through online exchangers. Every year there are more and more such sites, so it is better to review the digital market and choose long-tested and reliable ones:
- Matbea;
- 365cash;
- 60sec.
A person who decides to purchase the Siacoin cryptocurrency at an acceptable rate should know that it cannot be exchanged for regular money. To complete the exchange operation, you will first have to transfer your rubles to BTC, then they can be exchanged for SC. The rate fluctuates constantly, today the price of bitcoins is rising. How much a cryptocurrency coin is currently worth can be tracked using online calculator services. It is easy to find out the constantly updated exchange rate from reviews by analyzing the information. One of the simplest services can be found on our website - the Calculator block, or in the courses widget:. There are a large number of similar calculators on the Internet. You can choose any one, the main thing is user convenience.
Siacoin Platform: Benefits
As we already mentioned, Siacoin (SC) competes with a lot of popular cloud storage services. Advantages of storing on the Siacoin platform:
- Privacy and ease of setup. Cloud storages have free access to your data. In the Siacoin (SC) system, users control their files on an ongoing basis. That is, the host has access to them if he has a private key. Please remember that client information is stored in encrypted form.
- Availability and profitability . The fact is that in the Siacoin (SC) system, prices are formed freely - there is no single price tag, and users have a huge choice among services. For example, on Amazon you can store 1 TB of data for $23 per month, while on the Siacoin platform it is $2 per month.
- Data security. Due to the decentralized system, users do not have to worry about hacking and data theft. If you have too many files, then you can split it between several hosts, ensuring easy access to them.
Storage methods
After purchasing Siacoin, you need to know where it is best to store it. It is not recommended to save digital currency on wallets owned by trading platforms. They have rather unreliable protection, which is constantly hacked by scammers.
To keep your recently purchased cryptocurrency safe, it is better to use a specialized wallet - Sia UI. The only problem that a user may encounter when installing the utility is the long time it takes to download it. Depending on the speed of the Internet connection and the capabilities of the computer, the process may take from 1 to 2 days. In all other respects, the wallet is quite convenient. The utility's interface elements are simple and clear. The program allows you to sell and buy cryptocurrency, and use other features of the Sia platform, for example, rent out computer disk space. Unlike merchant vaults, the Sia UI wallet has reliable security and is compatible with almost all possible operating systems.
It’s easy to download the utility; go to https://sia.tech/. Then you need to select the Get Started option, find the desired version of the wallet, and install the utility according to the instructions that appear. You can use all the features of the Sia platform if the user’s virtual account is two thousand coins.
Siacoin Forecast for 2018
Data from coinmarketcap.com.
Until April 2022, the Siacoin exchange rate to the dollar was about 0.00009-0.00001 USD, then there was a growing trend, and by June 2022 it reached 0.02 USD. Since then, strong volatility has continued with drops to 0.004 USD and rises to 0.09 USD. Since January 2022, the rate has generally been falling, but the trend is likely to reverse soon.
Most experts have a positive forecast for Siacoin for 2018. Here are some good video reviews in which bloggers give their arguments why this coin will rise in price.
One cannot but agree with these opinions; indeed, the service that Sia offers is in great demand, and if the team continues to work on promoting its service as effectively as on development, then the rate will certainly grow.
It is difficult to predict the exact cost of Siacoin down to the dollar, but according to rough estimates, in 2 years this cryptocurrency may enter the top 10 according to the Coinmarketcup rating and rise in price to at least 50 USD per coin. SC is already in the top 30 with a capitalization of about 63 billion rubles and a daily trading volume of 5 billion rubles.
You can include the Siacoin (SC) cryptocurrency in your investment portfolio; the share of this asset can account for up to 7%. If you do not take pumps into account, then you will be able to make some profit in the medium term, and X's in the long term. Beginners don’t even need to engage in trading, just exchange Siacoin coins on the exchange, withdraw Siacoins to a cold wallet and forget about them for 1-2 years, and then count your X’s.
Advantages and disadvantages
Siacoin, like any other virtual money, has its advantages and disadvantages. A user who wants to invest rubles or dollars in the Sia platform should carefully study the possible bonuses and possible disadvantages of the service.
Advantages
A review conducted by renowned financial analysts showed the main advantages of this currency. Main positive points:
- The Sia platform does not have a permanent center. Hard drives with information are scattered all over the world, and attackers lose the ability to track saved files. This measure leads to increased data security. According to the code used to encrypt information, the file is cut and transferred to various hard drives. Stealing electronic coins is quite problematic.
- The encryption uses the TwoFish algorithm. It is considered one of the most reliable in the field of data encryption.
- Anonymity is maintained when buying/selling Siacoin. The user personally manages his own data encryption keys. No one knows the information except the owner.
- Conclusion of smart contracts between tenants and host owners. Thanks to the agreement, both parties take their obligations responsibly. In case of data loss or damage to the storage facility, the amount spent is returned to the affected person or the damage is compensated.
Flaws
Naturally, the cryptocurrency in question has a number of disadvantages that you need to remember when purchasing:
- If disputes arise that end in litigation, there may be problems with the legislative framework. Today, cryptocurrency technology is poorly regulated legally.
- Sia has quite a few large competitors who are happy to oppose the company in all directions. This may affect SC owners.
- Decentralization is not only the strength of the platform. Many users are distrustful of the fact that their data will be divided and placed on different hosts. This could lead to a decrease in buyers and a drop in the Siacoin rate.
What is proof of storage
PoS is proof of storage. This system protects users from hosts. For example, in order to receive payment, the host must provide evidence to the system within certain deadlines, which are specified in the contract. If these responsibilities are ignored or violated, the host is subject to a fine (Proof of Capacity and PoW algorithms are used for this). And if the host has earned a bad reputation from this, then the contract may even be canceled ahead of schedule. The host only gains access to the coins after providing this proof.
What does the future hold for cryptocurrency?
The virtual coin is still too young. It is quite difficult to make a serious forecast for the near future about its prospects. Currently, the project is just beginning to gain momentum. The developers are making great efforts to promote the coin and increase interest in it among the population. This has a positive effect on increasing the price of the SC cryptocurrency. Considering the modern security system and quite acceptable software for making currency transactions, the virtual coin has prospects. In the future, everything depends on the owners of the platform. The preliminary forecast for SC by some leading financial analysts is quite optimistic. They suggest that under certain conditions in the currency market in the future, these digital coins could replace the currently leading Bitcoin. At the very least, this virtual money is predicted to have one of its worthy places among crypto-finance.
Currently, despite the rising price of electronic money, SC has a long way to go and many tasks to complete to increase the number of users of the Sia platform and gain a reputation on the world's leading exchanges. The creators of the resource have a special plan to resolve such issues. It can be found on the official website: https://sia.tech/technology. It is updated almost every month. This resource also provides information about which items have already been implemented.
Nowadays, virtual money is gaining more and more space, replacing paper coins and gold. In the near future, society will come to the point where virtual tokens can be used to pay for food, clothing or real estate. This does not mean that you need to start mining right now or purchase virtual funds on one of the platforms. But it’s definitely worth thinking about it and studying the issue.
Convert Siacoin to currency units
Once you have accumulated a certain amount of Siacoin, you will probably want to convert it into real money.
Today, there are many cryptocurrency exchanges where you can sell Siacoin tokens, but they, unfortunately, do not support the direct conversion of Siacoin tokens into monetary currencies (euros, dollars, etc.). Therefore, the conversion of Siacoin takes place in two stages:
- Convert Siacoin to Bitcoin.
- Convert Bitcoin to monetary units.
But you can also save the earned Siacoin units for the future. Over the past year, the value of Siacoin has increased 35 times (that is, Siacoin tokens purchased for $100 today cost ~$3,500). And this despite the fact that the Siacoin currency appeared on the market about 2 years ago. For comparison, Bitcoin during this period cost ~$5 per token. Today, the cost of one Bitcoin is almost $2,000.
But even taking into account the above, it should be noted that the future of cryptocurrencies is unpredictable. There is a possibility that in a year or two Siacoin tokens will completely depreciate. Therefore, remember that you are at risk both when selling and holding Siacoin units.
Convert Siacoin to Bitcoin
There are several options for converting Siacoin tokens into Bitcoin units:
- ShapeShift (recommended): This is a simple and convenient method because it does not require registration on the site. Simply enter your Bitcoin wallet address and you will receive your Siacoin deposit address. You can now send your Siacoin units and receive Bitcoins tokens. That's all.
- Poloniex: This is another cryptocurrency exchange that supports Siacoin. It's a little more difficult to use than ShapeShift and is known for taking a few hours to complete the conversion from time to time, but it gets the job done quite well.
- BitSquare (Advanced): BitSquare is a decentralized P2P cryptocurrency exchange. Trading here proceeds more slowly and consists of more stages, but here the course is often more advantageous for users. BitSquare also supports direct conversion of Siacoin to currency, but in this case you are not relying on the system, but on another user, who may be a scammer. If you choose this option, be sure to protect yourself and your funds.
Where to trade Siacoin (SC)?
There are not many exchanges that trade and accept Siacoin (SC). We have listed the most popular ones in the following table:
| Exchange | BTC | ETH | USDT | USD |
| Bittrex | • | • | • | • |
| Binance | • | • | – | – |
| HitBTC | • | – | – | – |
| Upbit | • | • | • | – |
Advantages of the digital coin Siacoin
The final success and popularity of a crypto coin is determined by the number of users using it to conduct financial transactions. Based on this factor, the success of Siacoin will depend on how large a number of users are willing to invest in this payment instrument.
The forecast for 2022 for siacoin from experts is rosy, since the authors of this project were able to initially choose the right development strategy. At the same time, not only cryptocurrency services, but also representatives of the field of digital applications act as competitors of this platform. We are mainly talking about Dropbox and OneDrive.
Despite the existing competition, the Siacoin service has some advantages that set it apart from similar resources:
- information is stored within a decentralized crypto environment;
- Compared to competitors, the cost of services is significantly lower.
Now this platform offers its customers tariffs whose cost is ten times lower than that of its main competitors. Thus, the creators of SIA expect an influx of customers who are disappointed in the high cost of Dropbox or OneDrive services. In other words, a well-thought-out pricing policy for the service should become the main factor driving the entire project forward, which, in turn, will push the rate of the siacoin coin to grow.
Feasibility of purchasing SC
Those wishing to invest in SC should be advised that they should not expect sharp growth, which means there are no prospects of making super profits in the next couple of years. In any case, a certain growth will be small, but it will allow you to get some profit while maintaining peace of mind.
Experts advise waiting for the coin to appear on the Binance crypto exchange, and then investing in it. Thus, people will be able to invest their hard-earned money in the project at the start of its next rapid growth, dictated by recognition from the largest cryptocurrency exchange platform.
If we are talking about investing in order to save money, then this coin may be suitable. In addition, it is able to bring some profit in the period from six months to two years.
We can say that in the long term (from 5 years) investing in Siacoin is rather profitable. The price for SC in 2022 will be about $0.0251. According to the forecast and algorithmic analysis, the price of 1 SC in 2025 will be about $0.0568.
