People can already use cloud based storage services that do the same for free.
That's like saying we should throw Bitcoin in the bin because we already have money.
And BTW this is completely different from cloud storage providers in some ways :
- You can't delete data (thus you can't censor it).
- You should not trust any third party to store it (remember that's what makes the Bitcoin technology really disruptive ).
- Storage space is expensive and limited compared to other Data Storage providers.
Ideally Datacoin should be used to store :
- Documents/information that otherwise could be censored. This usage case should use enryption in order to protect the nodes.
- Any info you want to demonstrate that was available at some point in time. The blockchain not only ensures integrity but it also provides a great timestamping service.