Fil Mooned Right Away After I Sold It. Am I One of the Weak Hands?
April 2nd, 2021
“Fil mooned right away after I sold it. I am the weakest hand in the crypto world.” said one of my friend who has been trading cryptocurrency for many years. He is a user during the public sale and bought FIL at the price of $2. After the FIL is unlocked, he sells coins wildly every day. But even so, he still hates the slow process of unlocking, so he directly sold all the publicly purchased Fil at the price of dozens of dollars.
“What a fool I am!”, sighed as my friend who is recently watching Fil climbs up to the latest price.
March 27, 2021, FIL price shot up. According to Fil price in DigiFinex, the price of a single FIL is as high as $135, with a one-day increase of more than 23% at the time when this article was written. This means that over the past month, FIL has climbed from $35 to $135, an increase of more than 279% in a single month, with 24H transaction volume reaching 10.9 billion RMB, surpassing BTC’s 24-hour transaction volume.
According to the latest data from CoinMarketCap, FIL’s current circulating market value is about 92.9 billion RMB, ranking 9th in the list of top cryptos, and only 6 billion RMB short of UNI, which ranks the 8th. (Click me to trade Fil)
1. Will the rise continue?
FIL went from $35 to $135 in a mere month. I think most people have already sold their tokens for cash, or developed “acrophobia”? So will FIL continue to rise? Before answering this question, let’s look at what exactly the technology is behind Fil and where its value comes from.
2. What is Filecoin and IPFS protocol?
Before we get to Filecoin distributed storage and the IPFS protocol, we’d better have some basic knowledge about the internet technologies that we are using today.
The underlying technology of the Internet we currently use is composed of three elements: storage equipment (computer room), computing center and Internet protocol. Data is stored in storage centers, processed in computing centers, and then connected to storage devices and Personal computers around the world via HTTPS, a process that formed the Internet protocol that we use today.
Based on this technology, smart developers created Google, Taobao, Facebook and other Internet applications, thus giving birth to our present abundant Internet world.
The distributed storage solution of Filecoin is a huge innovation for traditional data center/cloud storage services, and the IPFS protocol is an improvement over the traditional HTTPS Internet protocol, so you can imagine how much the value of FIL tokens will increase once the Filecoin technology is ready to be deployed.
Let’s dig deeper into how much these two technologies are valued.
3. The value of Filecoin decentralized storage
One of the problems with the traditional centralized Internet is that files are very vulnerable to be lost. We often open 404 pages because our data has been lost in the server, and if the data storage center has not backed up the data, it will be lost forever.
On top of that, another problem with centralized networks is data duplication. The traditional storage layer is composed of many sets of the server room, so each platform of the data in the server is independent. If you want to upload the same video to different websites, you will have to upload it many times, leading to wasted storage space on the Internet.
All the above problems can be solved by the decentralized storage solution of Filcoin
Distributed storage is to have HASH encryption of a complete file, and crush it into multiple pieces of data to be stored in different servers. In that way, your file will be secured perfectly. Even if most of the file fragments are lost, as long as one of the pieces survives, your file can be recovered anyway.
And because your files are stored in fragments on multiple servers, files can be shared between different platforms, which solves the problem of duplication of data in traditional centralized networks and saves storage space.
4. The value of IPFS protocol
In the traditional centralized Internet, if users want to upload and download a file, it’s necessary to connect to the corresponding server through HTTPS protocol. If the server is far away physically, for example, if you are in China and you want to download info from an American website, the uploading and downloading will be very slow.
Likewise, since your downloading and uploading technology depends entirely on the performance of the server you are using, even if you have a fiber-optic network with a gigabyte of bandwidth at home, it will be very slow to open a site with a very bad server.
IPFS has a genius solution to these problems.
Also based on decentralized technology, the IPFS network relies on Filecoin’s distributed storage technology where your files are stored in fragments among multiple Internet servers, so your download and upload speed depends only on the distance to your nearest server. You can even download it immediately if your neighbour happens to have downloaded it. I think there is no need to explain how fast it can be.
Similarly, since your files are on multiple servers, bandwidth can be significantly saved, and the bandwidth available on your home will be as high as it can be.
This is like the original 2-lane road is widened to a 5- lane highway, which can be said to be a prerequisite for the application and development of blockchain technology.
If you are still with me, I assume you have already developed your understanding of Filecoin and the IPFS protocol. FIL tokens are generated as rewards for Filecoin miners who complete mining tasks. This process is extremely complex and the Fil mining machines can cost hundreds of thousands of dollars. There is even a risk of additional fees if the founding team changes their mining rules, so the best way to participate in Filecoin investment is to buy top mining companies’ cloud computing products.
Or just trade Fil in the secondary market for difference. (Click me to trade Fil)
Finally, I would like to remind you that the crypto market is highly risky and any investment decision should be made with caution. All the above contents are just for your information about Filecoin and do not constitute any investment advice. Anyway, risk comes from not knowing what you are doing.