Several fanboys from the SafeNet community forum recently speculated that Kim Dotcom’s new project will make Safecoin very valuable (first mistake: they assume Safecoin is going to be released one day).
But, in his latest interview with Max Keiser, Kim Dotcom explains (4 min 10 sec mark) how it’s actually going to work: https://www.reddit.com/r/Bitcoin/comments/57s4gi/kim_dotcom_explains_bitcache_and_mega_upload_2_on/
TL;DR, anyone will be able to serve Bitcache and monetize their space by placing their container on SafeNet, Storj or any other place.
This likely means several things:
- Race to the bottom: competition will make the price of public (cache) storage (regardless of where it is stored) nearly zero because it will become trivial to store data and provide storage to MegaUpload 2.0.
- SafeNet clients cache most last-used data (LRU), so both private and public SAFE content that is actively used will hardly generate any income for anyone on the SAFE network.
- SafeNet is supposed to pay the producer (in reality, the uploader), but any popular content that can be downloaded will simply be copied to local persistent storage so that the user doesn’t have to deal with SafeNet cache size limitations.
- If Kim’s network will work on the public Internet (or at least be less closed than SafeNet), users will use the network that’s easier to use. Ease of access and bitcoin win over SafeNet’s closed network and Safecoin any time. The size of the Internet and the bitcoin ecosystem (wallets, explorers, exchanges, and so on) simply dwarfs SafeNet.
- Because Bitcache is unlikely to persistently (as in: forever) store garbage data that are never requested, storage nodes (vaults, in SAFE) would be better off if they allocated storage to Bitcache service rather than joined SafeNet (which, in case you didn’t know, makes you receive uploads and store data for ever, for free). This makes me wonder what economic motivation could drive users to store data for SAFE when they can work with Bitcache and get paid in now and in bitcoin.
Having said all this, I do believe that MegaUpload 2.0 will become available before SafeNet & Safecoin, so I still don’t think we’ll ever see anyone actually leeching off the SAFE network. That is merely the best case scenario for this failed project.
MAID is a screaming sell.
MegaUpload 2.0 and Bitcache will be better than anything I’ve ever done.
– Kim Dotcom