I think it might have something to do with the new 0.4.0 client which did not meet the expectation.
hmm I guess not. Do you care to enumerate exactly where it falls short? I think we fixed most of the things in 0.4.1 but it depends on where your priorities are.
Because Siacoins are not an investment. To me the supply model doesn't make any sense if you are concerned about the price per Siacoin. If hosts set the price of storage, and Sia is divisible, why design a coin that increases so exponentially? You could have 21 Mil Siacoins and storage would cost just fractions of a Siacoin. People have no incentive to hold Siacoins right now. Why would I pay for Siacoins right now when the supply will increase 4x in the next year. If anything, people are overpaying for Siacoins right now. Siafunds are the investment, because you are collecting Siacoins by doing nothing. Or am I wrong here?
The focus is definitely not on making siacoins valuable, but I have been using it as a bit of a yardstick, and I think other people have as well. I will point out that Sia's inflation curve is substantially softer than Bitcoin's during every point in the first 12 years. But it makes sense that the price would be suffering right now as the supply will be doubling again over the next 3 months. That does mean that siacoins are cheap, and newcomers can get a pretty substantially slice of the pie for only a single bitcoin.
But I also think you are wrong about them being worthless overall. There is still a very strict long-term supply on the siacoin, and the price of siacoin has a hard floor based on how much people are using the storage. If people are doing $10,000,000 per month in storage over Sia, then depending on how they set up their contracts there will be a minimum market cap of between $50M and $250M for the siacoin, and that's assuming that people are essentially dumping siacoins as fast as possible. Such a market cap, even 5 years down the road, would put the price of siacoin substantially higher than where it is today. If you believe that Sia has the potential to hit this kind of throughput or more, then the siacoin looks like a very good investment in addition to the siafund.
I don't think most traders are looking at it like that though. And, given that the supply is going to be doubling again in the next 3 months, I'm guessing it will be reasonable to see the price fall some more by Christmas. Though, I really do think that interest in the project is going to pick up in a big way before then, and that should be beneficial for the price even if people are afraid of the large inflation over the coming months.
But, as many have been saying, the really important part here is to pay attention to the storage, pay attention to the number of users, and make sure that people are actually using the system. 0.4.1 will be ready soon, I think that will help.
I am a bit split. A lot of people want me to finish the mining pool, but that's going to take me probably two weeks, and it's going to be two weeks that I'm not spending on storage features. Luke is going to be able to, very shortly, commit most/all of his time to storage features. Even if the price is getting hit hard, it's pretty clear to me that the Sia ecosystem as a whole is advancing. We've got a set of volunteer developers now! That's a huge deal, and it's support that we haven't had up until this point.
Sia is moving in the right direction.
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