Curious to know the difference between Storj VS Bitcoin? Want to have in-depth knowledge of both crypto assets? You have landed in the right place. In this article, Bitcoin vs. Storj: which one should be in your portfolio, we are going to distinguish between these two coins.
As we head further into 2022, cryptocurrency is continuing to make inroads into mainstream business and commerce by offering decentralised versions of existing technology. Projects focusing on everything from crypto derivatives to cloud computing are all competing to corner the market and have the potential to disrupt numerous industries if they can rival the mainstream players.
This inevitably means that choosing which cryptocurrencies to invest in has become a more complex task. Whereas Bitcoin remains the go-to option for any serious investor, projects like Storj potentially offer huge potential for growth.
In reality, there’s no easy way to compare Storj vs Bitcoin from a technical perspective because the projects have completely different objectives. However, Bitcoin remains the benchmark of the wider cryptocurrency market, so making a comparison between it and Storj can help us to decide whether both tokens may have a place in your portfolio.
So in the following Storj vs Bitcoin comparison, we’ll be taking a brief look at what each project brings to the market, before moving on to consider what each token's prospects are for future price growth.
Storj vs Bitcoin - The Fundamentals
The inner workings of a cryptocurrency project rarely define its price - as Bitcoin demonstrates. However, it’s important to understand what each project offers and on what level it may appeal to mainstream businesses.
Storj and Bitcoin are two cryptocurrency projects that should both be on investors’ radars, but for very different reasons. Whereas the former is a relatively new project looking to revolutionise cloud computing, the latter is the undisputed king of cryptocurrency that remains an investor favourite. So which is the better pick for your portfolio in 2022?
As touched upon above, Storj is a cloud storage system powered by cryptocurrency. The organisation behind the project, Storj Labs, has actually been around for quite a while, having been set up by Shawn Wilkinson and John Quinn back in 2014. The project has been up and running since 2017, but the current iteration of Storj was officially launched in 2019.
The project has had several successful funding rounds over the years. It raised around $460,00 in BTC back in 2014 through crowdfunding. Then ahead of the platform’s launch in 2018, Storj secured $3 million in seed funding before its ICO raised a further $30 million a few months later.
In a nutshell, what Storj does is allow users on its network to make use of unused storage resources. It is actually one of several projects operating in the space, as cryptocurrency projects increasingly look to rival the major cloud storage platforms like Amazon and Google.
So what makes Storj stand out from rival cloud storage platforms? Arguably its key selling point is the way in which Storj ensures the integrity of its network by randomly verifying files every hour. The idea is that this spot check ensures that files are being hosted according to the platform’s rules.
Of course, underpinning this whole project is the platform’s native token, STORJ. Nodes operating on the network receive payments for storing data and making it available on request. As long as the node meets the requirements of the Storj protocol, those providing it receive STORJ for their troubles.
The platform appears to be able to deliver an impressive alternative to mainstream cloud storage options. The team behind Storj claim it can store over 100 petabytes and there are currently almost 7,000 nodes actively storing data on behalf of Storj users.
The Storj token
The whole Storj infrastructure is underpinned by its native cryptocurrency, STORJ. An ERC-20 token, we have already seen how STORJ is paid out as a reward for those providing data storage space on the network. Of course, users looking to pay for storage on Storj also pay in STORJ.
STORJ can also be bought and sold on the open market, much like any other cryptocurrency. In fact, STORJ consistently boasts a trading volume of over $23,000,000 and has been known to exhibit significant volatility since it first hit the market. The total supply of STORJ is capped at 500 million and, at the time of writing, there are 143,787,438 in circulation.
Bitcoin is the original cryptocurrency and despite being somewhat dated from a technical perspective, it remains the most widely known and most valuable token in existence. Having launched back in 2009, BTC paved the way for the crypto market as it exists today and was more or less single-handedly responsible for putting blockchain on the map.
When it first launched, Bitcoin was styled as a decentralised alternative to cash - something that could disrupt the existing financial system and provide a secure means of paying for goods and services electronically. Realistically, this hasn’t happened. The Bitcoin network is much slower than payments platforms like Visa and transactions are simply too costly to be viable on a commercial scale.
Instead, Bitcoin has become an option for storing value - earning itself the nickname of digital gold. Investors have certainly embraced BTC and, despite its age and comparative sluggishness, it has remained the most valuable cryptocurrency by a significant margin.
Transactions and Speed
We’ve already touched upon the fact that Bitcoin’s underlying network is slow by today’s standards. At most, Bitcoin can handle around five transactions per second. This compares to around 20 for Ethereum and several thousand that the latest smart chains can process.
Bitcoin’s sluggishness is largely down to its consensus mechanism. The network uses proof-of-work as a means of verifying transactions. This means that miners on the network effectively compete to solve equations to add new blocks, which requires a phenomenal amount of computing power. Miners are rewarded with BTC for their efforts.
For this reason, Bitcoin has struggled to gain momentum as a payment option in the real world and has instead become more popular as an investment asset.
The BTC token
Whole Bitcoin tokens are hugely valuable and in limited supply - only 21 million BTC tokens will ever be minted. Most retail investors will actually trade in Satoshi, which is the name given to smaller denominations of Bitcoin, much like the cent is to the dollar.
In addition to the supply cap, the amount of new BTC entering the system is also diminishing. Miners on the network receive BTC as a reward for adding blocks - this is how new BTC is minted - but that reward halves at regular intervals. What this does is increase the scarcity of Bitcoin as time goes on, which in theory could drive up its price.
It's also worth noting that many Bitcoin investors plan to hold their tokens for the long term, which means that the tokens are effectively taken out of circulation and thus scarcity is increased further.
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Storj vs Bitcoin: Which Is The Better Investment?
No matter how impressive the technology behind a cryptocurrency is or how much demand there is for the service it provides, ultimately investors are interested in token value. This means that, whilst its important to be aware of the technical particulars of Storj vs Bitcoin, ultimately its price data that we need to bear in mind.
Bitcoin vs Storj: Price History
Before we start looking at forecasts for STORJ and BTC, it’s important to first take a look at the data that is used to generate them - price history. By looking at previous performance, we can see how each token responds to certain economic situations as well as whether it tends to diverge from the wider cryptocurrency market.
STORJ has been widely traded since 2017 and has seen some pretty substantial bulls in its time. Between October 2017 and January 2018 it seemed as though Storj was destined for greatness, as the token consistently climbed month on month, from $0.41 in October to $2.82 in January - marking growth of almost 600% in less than four months.
Unfortunately, the early price hike proved to be something of a flash in the pan and just one month later STORJ had dropped to $0.72 per token. There was a slight upswing in May before things continued to slide and by January 2019, STORJ had dropped to below $0.20. Things remained fairly subdued for STORJ over the next year or so, as the token remained below $0.20 until August 2020, when prices climbed to $0.68.
STORJ held out above $0.40 for much of the rest of 2020 but started to decline towards the end of the year. However, the token’s fortunes were about to change. By the second week of February 2021, Storj had climbed above $0.90 and a major upswing in March then took the token to its record high of $3.82. June saw STORJ then plummet to around $0.60 but the token was to see another bull towards the end of the year that took it to $2.94.
In the opening months of 2022, the cryptocurrency market experienced a significant downturn and most tokens lost significant value. STORJ itself dropped as low as $0.89 in February but has since started to creep back up. At the time of writing, the token was worth $1.10.
When Bitcoin first started changing hands there wasn’t the extensive range of brokers and exchanges that there is today. The token was initially bought and sold for just fractions of a cent, but it didn’t take long for the hype to start and by the time 2013 came around, BTC had climbed to $1,242. Suddenly, investors had started to take notice.
For a while, Bitcoin showed no signs of slowing down and earned a reputation for delivering huge returns for investors. At the start of 2018, the token had reached a staggering $19,783, but a major downturn struck and by the end of that same year BTC had dropped to $3,430.
The market crash led to many investors getting their fingers burned and understandably things remained subdued for a while. But appetite soon returned for digital currency and BTC was trading above $10k by mid-2020.
Of course, 2021 was to be Bitcoin’s most successful year ever. By February, the token had soared by around 130% to a then-record high of $64,804. Following a market downturn over the summer, there were concerns that the market may have been seeing a repeat of 2018, but then November saw another major bull, which saw BTC reach its all-time high of $69,044.
As we’ve noted above, the market slumped in the opening months of 2022 and BTC dropped as low as $36,306. However, since then it has climbed back to $41,977.
Bitcoin vs Storj: Future Price Predictions
Looking at the price history of Storj vs Bitcoin, we can see that, to some extent, the price movement of these tokens has converged at several points, but there is some variation between STORJ and the wider market, which is of course led by Bitcoin.
Now it’s time to hear from leading analysts on what they think the price movement of these tokens could be in the coming years.
Storj has a strong use case but it also has several competitors, so its future success will depend largely on how it can increase uptake and not be overshadowed by rival cloud-based platforms. So what do leading analysts think its chances are?
DigitalCoinPrice seems to think that STORJ has a bright future ahead. According to its technical analysis, the token could increase in value by 30% to $1.46 before the end of 2022. The token is then predicted to continue on a slow but sustained upwards trend that will see it close 2023 with an average trading price of $1.66. By 2025, the platform expects STORJ to be worth $2.08 on average, with a potential high of $2.35.
Elsewhere, WalletInvestor is also bullish on Storj. Its figures suggest could climb to an average trading price of $1.36 by the end of 2022. It then expects the token to perform well across 2023 and by the start of 2024 STORJ is predicted to be trading at a potential high of $3.12. By the time 2025 comes to a close, the analyst has suggested STORJ could have breached the $4-barrier.
Finally, TradingBeasts - usually noted for its conservative predictions - is also optimistic about STORJ. Similar to the price predictions above, it has the token up by around 30% by the end of 2022. Whilst TradingBeasts does expect 2023 to be a difficult year for STORJ, with prices actually declining back down to $1.09 early in the year, ultimately it is expected to prevail and by the end of 2025 it is expected to have climbed by around 78% to an average trading price of $1.95.
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Judging by the predictions above, STORJ would seem to be a good portfolio pick for the next few years, but what about Bitcoin? Will we finally see the king of cryptocurrency fall or is Bitcoin going to continue to lead the market over the next decade?
DigitalCoinPrice predicts that Bitcoin’s recovery is just around the corner. It has the token hitting $52,137 before the end of 2022, which would mark an increase of around 25% on its current price. BTC is then expected to hold its value over 2023, reaching an average trading price of $57,606 before 2024 could see it breaking new ground by reaching a potential high of $72,745 - which would be a new record for BTC.
Similarly, WalletInvestor is expecting Bitcoin to shake off the recent downturn before the end of 2022 and by December it is expected to reach an average trading price of $57,855. The platform then expects BTC to have a very successful 2023, potentially hitting a new high of $83,000 in December. Then, according to WalletInvestor, 2024 could be the year that BTC finally breaches $100k.
The only platform predicting slightly tougher times ahead for Bitcoin is TradingBeasts. In fact, its analysis suggests that BTC could actually be down by as much as 27% in the latter half of 2023. This downturn is expected to be short-lived however, and by the end of 2024 the token is expected to have climbed back to $58,470, which would equate to an increase of 20% on its price at the time of writing.
So it seems that the comparison of Storj vs Bitcoin is pretty evenly pegged when it comes to forecasts, with both tokens expected to grow significantly over the coming years. However, as always we remind readers that these forecasts are often known to be inaccurate and cannot account for new developments in the industry or from various governments.
Check Out: Bitcoin (BTC) Price Prediction
Storj vs Bitcoin: What The Experts Say
Expert opinions are not financial advice and should never be thought of as such, but they are always worth paying attention to as they can clue us in on what the wider business world thinks of a particular cryptocurrency project.
Bitcoin has no shortage of commentators. One of the most vocal is Galaxy Digital’s Mike Novogratz, who has long been a supporter of BTC and despite the recent slump he still believes that the token can “reshape the word”. He maintains that Bitcoin really is a digital gold and is increasingly being seen as a safe haven when the equity markets look bleak.
Novogratz’s comments have been somewhat echoed by MicroStrategy’s Michael Saylor who claimed that more gold can always be mined, whereas Bitcoin has an upper limit. He believes this scarcity means that BTC will remain a good option for investors looking to store value over the long term.
Admittedly, Bitcoin vs Storj isn’t much of a competition when it comes to having a mainstream support space. Expert opinions on the latter are few and far between. However, Storj Labs CEO Shawn Wilkinson believes his project provides a solid storage solution. "If you want to use the data storage platform, the purpose of our company is to abstract the difficulties," he says.
Storj vs Bitcoin: Conclusion
Whether you’re an experienced crypto investor or taking your first steps into the sector, Bitcoin and Storj are potentially strong contenders for your investment portfolio. We hope this comparison guide has helped demystify these major cryptos for you — so you can continue to do your own research, learn more about these technologies, and find the best investment.
The reality is that a Storj vs Bitcoin comparison is always going to be a challenge, due to how different the projects are from one another. Storj is the more advanced platform, from a technical perspective, but it has nowhere near the notoriety of Bitcoin and at the time of writing is not amongst the top tier cryptocurrencies in terms of market cap.
It's also worth remembering that Storj does have several competitors. In essence, this is also true of Bitcoin, but at this stage, it's extremely unlikely that other value exchange tokens like Dogecoin or Litecoin will ever be considered genuine rivals to the original cryptocurrency.
But Storj does have a very viable real-world use case - something that isn’t necessarily true of Bitcoin. If it emerges as a leading decentralised cloud storage system then its native token could indeed become highly sought after.
Looking at analysts’ price predictions, it appears that both Storj and Bitcoin are expected to grow in value over the coming years. With this in mind, investors may want to consider adding both tokens to their portfolios. Its also possible that STORJ may offer a degree of diversification against BTC, as their prices have not always moved in tandem.
The bottom line is that it is difficult to tell which investment will prove the better pick over the next five to ten years. Some may say that Bitcoin is the more stable option, but the cryptocurrency market changes so quickly and it is now in somewhat uncharted territory. Whichever token you choose to invest in, you’ll need to keep a careful eye on the market moving forward.
How To Invest In Storj Or BTC Cryptocurrency In 2022
If you are new to cryptocurrency and are looking to start building your portfolio, then the good news is it's easier than ever before to enter the market. However, there are a few things you’ll need.
Firstly, you need a wallet to store your Storj and Bitcoin tokens. There are quite a few options, so it's worth spending a little time researching the best one for you. Once you’re set up with a wallet, the next thing you’ll need to do is find a broker that can give you access to the market.
There is no shortage of online brokers and exchanges, but we think you’d be hard pushed to find better than eToro. The platform provides a host of trading and investing services and lists most of the major tokens. You’ll also find eToro’s trading platform is one of the most user-friendly on the market.
eToro – The Best Platform To Buy Cryptocurrencies
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What is the Storj cryptocurrency?
Storj is a project that aims to offer a decentralised cloud storage solution that can rival the major players like Google and Amazon. By using underutilised storage space and leveraging the inherent security of blockchain technology, Storj aims to provide a more cost-effective alternative for the storage requirements of individuals and organisations.
Are cloud-based cryptocurrencies a good investment?
Cloud computing is a big deal. In fact, digital media is increasingly moving towards remote infrastructure. Naturally, blockchain is perfectly placed to provide a decentralised and cost-effective solution. There are several projects operating in the space and several of them are predicted to perform well in the coming years.
Where is the best place to buy cryptocurrency?
There are numerous places to buy cryptocurrency but if you are looking to buy with fiat currency then we’d recommend a reliable and regulated service such as that provided by eToro. Not only does eToro have a solid reputation in the industry, but it also offers numerous other options for trading and investment.
Does Bitcoin have a future?
It seems every year there are rumours that Bitcoin is finally running out of momentum. So far, all of these rumours have proven to be incorrect. Whilst Bitcoin may have been overshadowed from a technical aspect, it remains the market leader and continued interest from institutional investors means it is likely to remain so for quite a while.
Will the cryptocurrency market grow in 2022?
The sudden downturn that spread across the cryptocurrency market at the start of 2022 wasn’t entirely unexpected. After a record-breaking 2021, the market was always going to cool. However, it seems now things are moving back in a positive direction and most analysts believe the market will have increased in value by the end of the year.