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      Filecoin – The future of cloud storage - Stocks Telegraph

      By Muskan

      Published on

      August 12, 2021

      8:57 AM UTC

      Filecoin – The future of cloud storage - Stocks Telegraph

      Filecoin has reached new heights of popularity amidst the bull run. The offering of the cryptocurrency is becoming increasingly relevant to the crypto space. At the time of press, the cryptocurrency stands at a price level of $70.42. The price has been surging upwards with a minor 3% increase in the daily timeframe while the weekly gains are at 25%. The daily trading volume has shot upwards by 115%.

      Filecoin stands at a rank of twenty-four in the market with a capitalization of $6.72 billion. During the high of the bull run, FIL crypto reached towards an all-time high of $188 during the beginning of April. So, why is Filecoin surging and why is its offering important?

      What is Filecoin and why is it needed?

      The most attractive proposition of the cryptocurrency and blockchain technology is its decentralization. At the same time, the technology being novel is still in its exploratory phase and decentralization has yet to be completely achieved. A lot of services and products required for blockchains to efficiently function are still centralized. This poses an issue in the mass adoption of cryptocurrencies because cryptocurrencies are adopted because of their decentralization.

      Filecoin is one such proposition that aims to solve this problem with its proposition. One of the essential services that FIL cryptocurrency decentralizes is cloud storage. Filecoin enables users to rent out storage space on their operating systems which is then rented out to customers.

      Filecoin faces strong competition from centralized giants like Google and Dropbox. However, it has plenty of advantages because of its decentralization. Filecoin is designed to create a huge marketplace and with high supply the prices are expected to be relatively low than centralized service providers. The scale will also be huge. Moreover, decentralized services are much safer than their centralized counterpart as there is no single server.

      Is it a good investment?

      The cryptocurrency has strong fundamentals which makes it a good investment – especially in the long-term as price volatility can be somewhat factored out. Filecoin also has a strong footing in the market being one of the top cryptocurrencies in the market.

      Although a great proposition, it has a few limitations as well. Filecoin does suffer from limitations in terms of speed. Piecing together data requires more time as the network does not have a centralized server. Moreover, the ecosystem of Filecoin runs on the FIL token which requires using the cryptocurrency a must for their services. This also serves as a barrier to entry in the ecosystem.

      In terms of technical, the technical indicators have been suggesting a signal of buy in the monthly timeframe. According to the estimates of Wallet Investor, the one-year price of the cryptocurrency is expected to be at $138 while the five-year projections place FIL token at $440 – an increase of more than 500%. Digital Coin Price’s estimates a year-end value for the cryptocurrency at $110 and the price is expected to climb towards $248 by 2026.

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