Project and tech is very interesting but I don't get one thing: storj tokens are not needed to use the service you offer, since you accept fiat payments via credit cards and whatnot (which is a good thing by itself to make this service accessible to the wider public possible), so how is the predicted increased demand going to drive the token value up? Tokens are not even paying out dividends based on fees revenue so what's in for backers other than pure speculation?
If it's only speculation I'd rather just hold bitcoin or eth or whatever, and use your storage service as a normal user rather than an investor.
Maybe I missed something. If you can better clarify, thx.
Ok, so I'm only talking about how Storj can be used to grow the coin. I'm not going to list off all the potential negatives. There are plenty of people around who can do that for us.
Storj Labs will (and has) pay farmers (Those who sell their harddrive space) in STORJ, the new Ethereum token, every month. Some Farmers will cash out so they can pay their bills. But many farmers will hold their coins, for whatever reason. Rainy day. They believe it will go up in value. They aren't paying attention. Whatever... In normal mining, some miners cash out, and some hold. Same thing here. Storj also uses the coins to pay for rewards for various things.
The amount of coins is fixed. Nobody is mining STORJ. Once Storj Labs runs out of their own coins (This could take awhile), they will buy them from the market. That creates demand for the STORJ coin, if by only one entity, that being Storj Labs, it would be coins bought every month, regardless of market conditions. They have to pay their farmers, and they pay them in STORJ. And the amount they pay grows every month as more people join to sell their harddrive space.
Imagine if instead of Bitcoin miners getting new bitcoins from out of thin air, that the Bitcoin Foundation had to buy the coins off the exchange in order to pay the miners who earned a reward. How would that impact the price?
In addition, Storj Labs intends to use the STORJ token for smart contracts. Details to be announced in the future.
And of course, as you mentioned, people can buy storage with their STORJ coins.
Couple that with the usual speculation, and trader scenarios, and it has a lot of room to grow in value. But like anything, it could also become worthless if an asteroid smashes into Atlanta. You have to weigh the risks and make choices that make sense to you.
I think storjx has problems with the network.
