IMO, that is expensive.
Currently, 1TB hard drive (Seagate or Western Digital) costs between $50 to $70 on Amazon. They have a typical lifespan of 3 years, with around 10% failure after 3 years. Here’s a cost analysis break down.
1TB Hard Drive
1000GB @ $60 = $0.06 per GB
$0.06 / (life expectancy 36months) = $0.0016 per GB per Month or $0.002 rounded up.
1TB Cloud Storage
1000GB @ $10 per month = 0.01 per GB per Month.
Cloud storage cost 5 times more than a hard drive. This is just a basic cost comparison using storage space alone.
If we apply the numbers above to SAFE storage, we can estimate Safecoin’s “Network Storage Value” using this basic formula. Keep in mind, this assumes people view SAFE storage service equivalent to other cloud storage services.
SC = $0.01 x GB x 36 = Fiat Value (Dollars)
If 1 Safecoin buys 1GB, that means…
SC = $0.01 x 1GB x 36 = $0.36
If 1 Safecoin buys 10GB, that means…
SC = $0.01 x 10GB x 36 = $3.60
Q&A
Why use 36 months for SAFE storage?
Even though SAFE storage pays for lifetime (unlimited), it’s reasonable to use the life expectancy of the average farmers hard drive as a “substitute” in place of an unlimited time frame. Obviously, Network space endure added churn events, due to failing drives after 3 years.
What about Safecoin’s use as currency?
This is a consideration but without the Network Launch and peer review, I have no way of knowing how much value that may add. As long as it is secure and easy to use, it will add more value!
What about Safecoin’s use in APPS?
This might be the best feature for Safecoin, but we need killer APPS for it to become a reality. Again the potential is there because people spending Safecoin increases demand which in turn increases its relative value to other currencies.
What about de-duplication that reduces total storage costs on SAFE?
I already ran spreadsheet simulation models, using various figures and the results were jaw dropping. Unfortunately, it’s NOT a live assessment which means pure speculation. Hopefully, we will get a good starting point when we test the live Network.