Filecoin crypto (FIL) review: Still a good investment?

You know Dropbox, right? Well, imagine the same thing but on the blockchain and you will have Filecoin. It is indeed a decentralized storage service. We can then store our excess documents on decentralized servers.

You can then rent additional storage space for these documents and in the same way, you can also rent your available space. By doing this, everyone with free space on their computer can then earn money. It is a decentralized storage system that proves beneficial for all parties.

Indeed, the project is in fact very interesting from an economic point of view, as you will quickly understand from the rest of this article.

We will also see if it is still a good investment to make today.

Filecoin Overview

The project was conceived and thought out in 2017 and the founding team managed to raise $257 million. It was Protocol Labs, led by Juan Benet (computer scientist and engineer) who initiated this project. This very quickly made them one of the largest and most successful ICOs, very clearly. And it was in October 2020 that the project was realized and officially launched.

If the project was so appreciated, it is also because it is open and accessible to everyone. Even more, everyone can then create a source of income rather easily thanks to Filecoin.

Everyone can therefore create a source of income by selling their free space. Likewise, as we accumulate more and more documents (and ever heavier ones), we increasingly need additional stock. With leaders like Amazon, Google Drive and Dropbox, it is a market worth billions of dollars. With the use of technology and the ever-increasing need to store data, it is a sector which does not seem to be experiencing crisis, neither today nor tomorrow (?).

Filecoin will be able to meet the growing demand for this type of need which continues to grow for both individuals and businesses. This is also the target that Filecoin is aiming for and it is perhaps also what contributes to its high stock market valuation.

What are the benefits of using Filecoin?

What one might ask at first glance are the advantages of using the data storage service in a decentralized manner. We will therefore see here the advantages of Filecoin to a company like Google Drive or Amazon.

You will certainly better understand why renting a decentralized hosting service is likely to become the norm in a few years.

Reduced fees: Filecoin has a very large global market, which makes it possible to increase the available storage capacity considerably thanks to economies of scale in particular. The fact that this is managed by cryptocurrencies drastically reduces fees with fewer infrastructure costs, for example.
Ecology through the exploitation of existing resources: How many people have computers with large storage capacities that are not used. Rather than purchasing new servers and equipment, with Filecoin, we exploit what we already have. For the environment, it's already better, right?
Greater security: It is a decentralized network and this means that to hack the network you would have to hack more than half of the computers. This is almost statistically impossible. Moreover, in 2012, for example, the company Dropbox and iCloud were severely hacked, updating more than 60 million passwords. This is a very difficult scenario for Filecoin. Safety is even the number 1 advantage.

Finally, we can also mention here what we consider to be one of the best advantages of Filecoin and decentralized rental services overall. While for Google Drive or Amazon, the money spent by users only goes to one company, we can welcome the fact that in decentralized services, everyone wins. The money is returned to miners around the world and this then allows for better distribution of the wealth created on the network. This makes it a more ethical business model, to put it plainly.

That said, the advantages, although numerous and solid, do not prevent Filecoin and decentralized storage from still having disadvantages.

Here are the disadvantages of decentralized storage services:

Lower speed: Yes, this is definitely one of the first drawbacks. In fact, in centralized services, one needs access to a single server to access stored documents. In a decentralized network, several servers must be used to find documents. This will also depend on the computers and the internet speed. Of course, this is therefore slower than in the centralized service.
For detractors of decentralization, they will criticize the fact that you have to use a cryptocurrency to access this service. This can certainly be an entry barrier for novices and people who do not know and are not used to cryptocurrencies. Indeed, we can nevertheless imagine that mass adoption becomes significant enough over time for this barrier to naturally narrow.
The fear of storing documents on a stranger's computer thousands of miles away. This is a drawback which has already been thought of and resolved by Filecoin. In fact, a person who stores documents cannot access them because they are encrypted and are cut into several pieces. To guarantee network security, documents are in fact scattered between several servers. This means that if a user accesses documents stored on their computer, they will only have access to a series of unreadable numbers. Only when the person who owns the documents wishes to access them can they have the credit, which is provided thanks to the unique key they have.

How to mine FIL cryptocurrency

Many people and companies have gotten into FIL mining because with the rising price of crypto, it is proving to be a very lucrative and profitable business.

There are actually mainly two types of FIL miners:

There are the storage miners : They are the ones who are responsible for the documents that are stored on the network. They earn FIL when they validate data storage therefore.
There are the file recovery miners. There, miners earn Wire by allowing custodians to view their documents stored on the network.

Filecoin plans to subsequently add other types of miners who will, for example, be responsible for repairing certain documents or those who will make access to files faster.

You should know that the craze for FIL crypto mining has been very significant in China, in particular. Many bitcoin miners have even abandoned bitcoin mining to start mining Fil, which is much more lucrative.

For example, many companies have decided to invest in dedicated equipment in order to mine crypto. We can cite in this respect Code Chain New Continent which decided to acquire for 80 million dollars a Filecoin mining supplier (Dow Limited).

Conclusion: Should you (still) invest in Filecoin?

In fact, Filecoin has competitors and that's actually a good sign. This shows that the market is buoyant and that this type of service provides a real solution to a real problem.

We can think of Siacoin which has been one of the leaders in this field and has more than 12300 terabytes of rental space. The SIA token can be found on the majority of exchange platforms as it has become an essential crypto with a reliable management company.

The other competitor that we mention is Storj which launched its storage service in March 2020 and a few months later, the company had more than 80 petabytes of storage capacity. Just like siacoin, storj is a cryptocurrency available on almost all platforms.

Early investors in FIL cryptocurrency are quite happy with their investment. While the FIL crypto was launched in October 2020, from March 2021, the crypto experienced an incredible rise of more than 4000%, in one year.

Now, and this is the question we ask ourselves - especially after such a bull run - is whether we still need to invest in this cryptocurrency and in this project.

Well, only you know that. That said, given the enthusiasm of companies for FIL mining and given the enormous market (count billions of dollars in volume) represented by the online data storage market, we can also consider this as a still early investment. .

Did you stop investing in bitcoin after its 2017 ATH? It's all in your answer.

Even if the investors who invested in FIL from its launch are clearly those who will reap the most profits, we can nevertheless believe that filecoin still has a bright future ahead of it.

You can now buy/sell and exchange the thread on almost all exchange platforms such as Upbit, Huobi or Binance.

👉 Discover the Filecoin project on the official website.

👉Invest in crypto FIL on Binance (and get 10% off your fees)

Note: No financial advice is given on the zonebitcoin blog. This is information of which you are the sole judge and master. Be responsible with your investments and only invest as much as you are willing to lose.

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