They are probably betting on the low probability event that this becomes THE crypto currency. I can buy a hard drive with more space than I ever need for 40 dol

They are probably betting on the low probability event that this becomes THE crypto currency. I can buy a hard drive with more space than I ever need for 40 dollars. A storage service could get it cheaper, so I doubt that they are betting on cheaper file storage aspect of this. That is just a way to get the value of their currency off the ground. That may also be why they need so much money: to initially guarantee an exchange rate to other currencies.