Filecoin price prediction: what is Filecoin and how high will FIL coin go?
As top Chinese firms eye Filecoin, we sum up expert opinion on the future of the crypto
- What is Filecoin?
- Filecoin price analysis
- Filecoin price prediction
- FIL price prediction for 2021
- Filecoin vs Bitcoin
The value of cryptocurrency Filecoin (FIL) saw a rise of over 250% earlier this year. This has been attributed to an ongoing interest in cryptocurrency by top Chinese firms. Since then, however, the market has been volatile. So, we ask: is FIL coin a good investment and can we make a FIL coin prediction?
Filecoin broke barriers during its ICO launch in 2017 when it raised over $257m (£187m, €216m). With the launch of its much-awaited Testnet and Mainnet products, it might attract more interest. We look at whether Filecoin’s value will go up and assess expert opinion on whether it is a worthwhile investment.
What is Filecoin?
Filecoin is an ambitious project that aims to reduce the dependency of cloud storage on centralised systems. It is a storage pool that permits anyone to rent out their hard drive storage space in exchange for reward. Filecoin also allows anyone globally to purchase the storage they need from the network.
The project began in 2014 as an incentive layer for the InterPlanetary File System, a peer-to-peer storage network. Filecoin is an open protocol and aims to store data in a decentralised manner.
Unlike cloud storage companies such as Cloudflare or AWS, where centralised companies hold the power over data and act as a gatekeeper, Filecoin leverages its decentralised nature to give the power back to users by protecting the integrity of data, as well as making it easy to retrieve and difficult to censor.
Filecoin price analysis
The price of FIL started surging in April 2020 after the announcement of its listing on the Gemini exchange, with high trading volumes. In April 2019, FIL was trading at an average price of $4.50, and broke barriers in the last days of 2020 to trade above $20.
In March this year, barely a few days after the announcement of significant investments in China, it rose above 250% while trading above $200. Crypto experts said that it was just the beginning for the decentralised blockchain token. However, since then, the crypto market has been volatile. The crash of 7 September saw the FIL price fall by 20%, and at the time of writing on 14 October, trading was hovering around the $70 mark.
Xinyuan Technology Co, a computer hardware giant based in Shenzhen, recently invested in Filecoin miners, drawing more attention to the cryptocurrency. Reporters were quoted as saying that the Chinese tech firm invested CNY580m, or over $89m, in Filecoin.
Filecoin price prediction
The Filecoin ecosystem, along with blockchain, uses its native governance token known as FIL. The token is used to pay for services on the platform.
FIL price prediction for 2021
DigitalCoinPrice’s Filecoin price prediction estimates that its value will be $114.8 by the end of the year. Its long-term Filecoin price prediction suggests that it could rise above $300 by 2028.
Wallet Investor forecasts that the Filecoin price could hover an average $85.20 by the end of the year, possibly rising to $361.741 by October in five years.
Longforecast.com sees the value of the coin at $66.6 by the end of the year and believes it could rise to $82.6 by October 2025. This platform’s experts believe that Filecoin will be a profitable long- and short-term investment.
Filecoin vs Bitcoin
The cloud computing market is already big and growing at a fast pace. However, the market is dominated by a few players, such as Amazon, Microsoft and so on. These are all part of the centralised network.
With the advancement of technology, the cloud market will expand more in the future.
On the other hand, Bitcoin is only a digital currency that you can buy, sell or exchange. Its value is tied to trading, while FIL has other use cases apart from trading.
According to crypto experts and the token’s technical analysis, Filecoin’s value is capable of surging in the future. But when it comes to making a FIL coin prediction, it’s important to remember that crypto markets are very volatile, making it difficult for analysts to accurately call what a coin’s true price will be in the future. Always be sure to do your own research and never invest more than you can afford.
Instead of contributing computational power, FIL miners contribute storage capacity to be used in deals with clients who are searching for ways to store data.
There are two types of mining in the Filecoin network: storage and retrieval. In storage mining, users earn FIL by storing data for clients and computing cryptographic proofs to validate the integrity of data over time, making sure the data hasn’t been manipulated by the miner. The chances of reaping the block reward and transaction fees are proportional to the amount of storage the miner contributes to the Filecoin network and uptime.
In retrieval mining, users earn FIL by winning bids and mining fees for a particular file, which are solely determined by the market value of the file’s size.
If you are interested in buying Filecoin, there are various exchanges that offer an opportunity to trade it. Visit any of the exchanges that support FIL token trading and sign up. Deposit the funds in your account and obtain a cryptocurrency that is listed in a currency pair with Filecoin, such as BTC or ETH. Then buy the Filecoin token.
Investing in this cryptocurrency could be quite simple. You might have to look for a wallet to store your token. There are online and offline wallets that you can use to store your Filecoin. Remember to factor in the latest news and trends, and never invest more than you can afford to lose.