Siacoin
$0.00447 -13.79%
SC · 2d

Question about how market volatility could increase hosting costs

Good evening all, I saw a discussion on discord that made me think about a hypothetical storage situation. In this hypothetical situation I'm storing data on Siacoin using a 6 month contract. I define my SC price and I start uploading. I refill my wallet as needed over the course of the 6 month contract. But, what if the USD/SC price drastically increases over this six month period? Is there something in place to protect the folks who already have storage contracts locked in? If I start my storage contract at 50 SC/TB when the price is .007, then the price goes to .07, my expenses just increased 10x if I'm buying SC over the course of the six months. Over the past year we've seen a lot of volatility so I'm sure someone here has probably faced this sort of issue. As I'm typing this I realized that if the USD/SC price drops from .07 to .007, then the host just dropped their fiat earnings by 90%. Does a storage contract update based on updated host fees? Does the Siacoin network have a function in place to account for this? Is the best method to buy all the SC I'll need over the duration of that contract when I start it? Would it be possible for storage costs to be fiat pegged?
Go to self.siacoin
Recent news