Cryptocurrency has been making news globally. The craze for this investment model is growing. Time and again this investment module has proven to provide better returns.
The first cryptocurrency website to gain a global launch is Bitcoin. It entered the market after the recession in 2008. The concept of cryptocurrency has interested everyone. The blockchain platform and decentralised finance model attracted investments globally. Besides Bitcoin, today there are more than 4000+ cryptos in the industry. All these cryptos are capable of executing smart contracts as well.
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Understanding Filecoin (FIL)
It is a decentralised storage network and allows change in the cloud network. The current cloud-based network changes to an algorithmic module. The module runs on blockchain end to end. The blockchain makes use of the native token FIL. Every miner earns this coin by enabling storage for clients. An alternative to this is when clients use file coins to hire miners. These coins are then utilised to provide storage spaces and the distribution of data.
Filecoin makes use of the proof of spacetime model. Using this module miners create separate blocks enabling them to store data. Every filecoin protocol makes use of independent storage providers through a network. This protocol in turn enables data storage and retrieval service. This allows the protocol and network to not rely on a single provider for service delivery. The role of each network provider involves one of the three functions. One where clients pay tokens to store and retrieve any service. Two where every miner earns their rewards through the process of storage. In the third case, some miners are retrievers and earn their tokens through data servers.
What does Filecoin aim to achieve?
Filecoin started as an ambitious project thereby reducing the dependency on cloud storage. Its storage module allows investors to rent their storage space in their hard drives. It will also enable users to buy these rented spaces globally. The platform is not tied down to any location. An investor or user from across the globe can rent out and buy storage space. The ambitious project kick-started in the year 2014. The protocol makes use of an open network and allows the storage of data in a decentralised manner. The governance module in the File system makes use of its native token FIL. This token allows users to pay for various services available on the File system module.
How is Filecoin different from other cloud storage providers?
There are other cloud storage providers like AWS and Google. But, FIL stands apart due to its decentralised working model. FIL provides power to its investors to review and retrieve the data. The protocol also makes it difficult to censor any data loaded in the module.
Price analysis of FIL
FIL started trading at a launch price of $4 per coin. The coin traded at an average volume of more than $20 in 2020. In the following year, a Chinese company invested more than $80 million. A few days after this announcement, the price of this coin started trading at more than $200 per coin. This marked a 250% increase in the sale price since its launch. Even FIL has its share of price volatility. The price per coin surged down to $51 in 2021. This price surge was due to the announcement by the Chinese government. The country announced a total ban on crypto mining. Following this, FIL found it difficult to rise again. As of January 2022, the price of FIL is hovering under $15. In March 2022, a German company agreed and signed a few investments with FIL. Since this, the prices have increased. Today, a FIL trades between $16 to $18 per coin.
Prediction of FIL beyond 2022
The current year is due for recovery. FIL is attracting some major investments. As per studies, FIL will reach a price hike at $27 during the first half of the year. During the latter part of the year, there will be an incremental raise. By the end of 2030, the price of FIL will touch $85 per coin.
Filecoin is an investment bet for 2022. But it is best advised to follow the market trends before making a crypto investment.