Launched in 2017, Filecoin is a file-sharing blockchain that aims to offer an alternative to storage servers. What are the origins and prospects of this venture? Should you buy Filecoin and hold it in the long term? If you are curious about these questions, you have come to the right place! Our Filecoin price prediction article will surely answer all of your questions and more!
Filecoin is a decentralized storage system that allows anyone to rent out their storage space to the network. Conversely, anybody can rent the space needed from the network.
Common storage sites such as Google Drive or OneDrive are centralized, which means that they are exposed to hackers who can access the servers and steal a tremendous amount of data. Decentralized storage networks circumvent this problem by segmenting the data, encrypting them, and storing them in different nodes.
Only the proper key owner can then assemble the data from different nodes; a thief will only get a fragment at best. The same fragment of data is stored in two or more nodes so that the owner can still assemble the entire data even though one of the nodes gets attacked or otherwise damaged.
There is a vast amount of storage capacity in the world, from personal computers to industrial-scale servers, but most of it lies unused. Think about the amount of unused space in your own machine, and multiply it by millions for people all across the world. Mobilizing that capacity means that the cost of storage is going to be cheaper by order of magnitude. What makes it cheaper is the increase in supply and the fact that decentralized networks don't have the sort of overhead costs of a physical server.
Filecoin thus provides a great alternative to the traditional servers and data centers. It paves the way for a more robust, resilient, efficient internet in that failure at one of the nodes does not mean an outage for all. We will now examine the historical performance of Filecoin and its prospects:
Filecoin Historical Price Analysis
After languishing under 10 dollars from 2018 to 2020, Filecoin sprung back to life after the much-awaited mainnet launch in Oct 2020. After breaching the 50 dollar mark, it came down to a more moderate 20-30 dollar range before rising back to 40 dollars in Feb 2021.
Current Price, Market Cap, & Supply Details
At the time of writing, the price of Filecoin had risen by 3.53% in the past 24 hours to $40.37. The coin has a $2.01 billion market cap, with a total supply of 1.98 billion FIL tokens.
Filecoin Future Price Forecast Predictions
Price prediction relies on a careful analysis of historical trends and judicious projections of those trends in the future. Deep learning or machine learning tools have also been used to identify the trends that escape traditional means of analysis. Since such analysis requires the analysis of large blocks of data, artificial intelligence has emerged as an ideal technique in predicting asset prices, including the price of cryptocurrencies.
Short Term Forecast
Long Term Forecast
*This price prediction is based on the data collected from various sources meant strictly for educational purposes only and not taken as investment advice. Users should do their own research before investing.
Filecoin Price Prediction 2021
After the successful mainnet launch in 2020, Filecoin is off to a strong start in 2021, and a steady rise can be expected for much of 2021.
As per the forecast and algorithmic analysis, the price of the Filecoin token (FIL) could potentially be around $52.12 in 2021.
Filecoin Price Prediction 2022
As the amount of data generated increases exponentially, so does the need for storage space, and Filecoin is well poised to offer a cheap and reliable service on this score for the foreseeable future. As more and more people jump into the crypto bandwagon, Filecoin is set to surge to unprecedented heights.
As per the forecast and algorithmic analysis, the price of 1 Filecoin token (FIL) could potentially be around $65.23 in 2022.
Filecoin Price Prediction 2025
By this date, crypto will have pervaded much of advanced society in the same way smartphones did in the late 2000s and early 2010s. It is expected that crypto will undergo a sustained rise in the next few years, comparable to the boom of mid 2018s that carried some of the currencies to the stratosphere. Filecoin will continue to offer a much-needed service at an increasingly reduced price as blockchain technology continues its rapid advance.
As per the forecast and algorithmic analysis, the price of 1 Filecoin token (FIL) could potentially be around $121.23 in 2025.
Is Filecoin a Good Investment?
Crypto is a competitive space, and in order to assess whether Filecoin is a good investment, we must take a look at some of its rivals. Other storage blockchain protocols such as Siacoin and Storj are already up and running, offering incredibly cheap storage for a fraction of the price charged by conventional services such as Dropbox. In order to prove its value to the customers, Filecoin must demonstrate that it can compete with rivals such as these.
As more and more people live online lives, the need for servers will only go up, but it is still an open question if they will adopt blockchain as opposed to traditional storage. A layman with limited data needs might not be willing to experiment with a relatively new technology when conventional forms perfectly suit his needs. Will Filecoin be able to match the seamless and intuitive interface offered, for example, by OneDrive? Questions still persist on the reliability of the service.
Since data is distributed in various nodes, it is inevitable that some of the data will be lost once the nodes decide to withdraw service. To be sure, there is a certain amount of redundancy in the network, and it is highly likely that the data can be retrieved from somewhere else if a certain node decides to disappear.
However, people may decide to weigh the risk of data loss in blockchain against the risk of hacking in traditional servers, and there is no telling if they decide against the former. If blockchain gets more familiar in the coming years, it is quite possible that people will be comfortable enough with the platform to trust it with their data.
How to Buy Filecoin
Filecoin is available in mainstream crypto trading sites such as Binance and Bittrex. In order to trade crypto, you have to open an account on these sites and use two-factor authentication to secure the account. You then need to deposit funds and trade the desired amount of Filecoin. Some of these exchanges may only accept other cryptocurrencies, and therefore if you want to buy your first batch of crypto, you can head over to coinbase to exchange crypto for fiat currencies such as USD.
More Information About Filecoin
How does Filecoin work?
Every blockchain is a ledger that records data in a distributed network, and in order to validate the data, every blockchain requires a consensus mechanism. Consensus mechanisms have often been of two kinds: proof-of-stake, in which nodes vouch for their good faith by spending tokens into the system, and proof-of-work, in which they spend their computing capacity instead.
Filecoin innovated two new consensus mechanisms: proof-of-replication and proof-of-spacetime. Proof-of-replication ensures that a node has copied a given number of files on its storage. Proof-of-replication is similar, although this ensures that the files are being stored over a certain period of time.
In order to mine Filecoin, a user can provide storage space out to rent and earn FIL coin as a reward. It is not necessary to have expensive ASIC equipment, nor to have petabytes of storage capacity. This is because a user can also earn points by transmitting content to clients as quickly as possible, rather than storing them.
Filechain is a product of Protocol Labs, founded in 2014 by Juan Benet. The organization employs an excellent team of developers specializing in decentralized internet services and peer-to-peer networking.
Filecoin Price Prediction – Conclusion
File storage is one of the essential parts of the infrastructure. Filecoin can be a major game-changer if it can offer a cheap alternative to the centralized solutions currently available.
Ever since its success ICO in 2017, one of the biggest ever in the crypto space, with more than $200 million raised, Filechain has been making steady progress on this front. However, it still confronts an uphill climb if it wants to compete against the established storage service such as OneDrive or Google Drive, which offer an easy, user-friendly, intuitive interface.
Will Filechain be able to attract an average user with limited data storage needs? The average user might worry that the data stored in a distributed ledger can get lost when nodes check out, while centralized storage, although vulnerable to hacking, can credibly guarantee the integrity and completeness of the data.
However, as people get more and more familiar with blockchain technology, they might trust Filechain more and more as well. In summary, this is a project with sound fundamentals and immense promise, and it has a bright future ahead.