Over the past few decades, the way of storing and accessing data has changed tremendously. With the popularity of the cloud computing market data storage, Filecoin is a cryptocurrency that has gained much attention.
Filecoin is one of the few decentralized cloud service providers in the world. With a live mainnet, high institutional interest, and polished set of features, Filecoin is already a hot topic of discussion in the market. Investors are in a hurry to know whether Filecoin can be a millionaire-maker coin in 2022.
Compared to the popular centralized cloud storage platforms like Amazon AWS, Microsoft Azure, and Google Cloud, Filecoin is a highly secure and cheaper alternative for data storage.
Before diving into the potential of this coin to be a millionaire-maker, let's dig a bit deeper into Filecoin and the factors that boost its growth in 2022.
Filecoin: What Is It?
Filecoin is an open-source, decentralized, storage and digital payment platform that aims to store humanity's most important information. It enables users to store data with the unique built-in economic incentives that ensure the reliability of the files stored over time.
This peer-to-peer network developed by Protocol Labs provides a safe platform for users to store their files and data. Users often pay competitive prices to storage miners for safely storing their data, and Filecoin ensures the safety and protocol of storage.
FIL is its native cryptocurrency, which is also used as a payment token in the network. Filecoin is built on top of the InterPlanetary File System (IPFS). This implies that users are incentivized to rent out their storage spaces, and they often get paid in FIL tokens.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Is Filecoin A Millionaire-Maker Investment?
Filecoin is a highly touted project that raised over $250 million in its ICO (initial coin offering) in 2017. It is backed up by several big-brand assets like Sequoia Capital, Andreessen Horowitz, and Union Square Ventures, among other investors.
With the rising interest from China and Chinese investors, 2021 is a tremendous year for this decentralized cryptocurrency. It initiated January with a price of $23.4. With the announcement of Grayscale and other institutional adoptions, the FIL coin price surged up the ranking chart, climbing to a new all-time high of $237.24 on 1st April 2021.
With huge investments from big corporate institutions and partnerships with several organizations, Filecoin has huge project plans in place for this year. It sits at $28 as of writing and has a market cap of around $4 billion.
Given its tremendous surge of over 60% by the end of 2021 and unique characteristics, crypto enthusiasts predict that Filecoin has the potential to be the next millionaire-maker coin in the market.
Check Out: Why Filecoin is Going to Explode Ths Year
Factors That Could Make Filecoin A Millionaire-Maker
Filecoin has several unique features and significant advancements that are the driving factor of its growth. Here are some of them that could make Fileocin a millionaire-maker coin in the foreseeable future.
1. Filecoin's Decentralized Approach
Despite being an open-source cryptocurrency, the way FIL leverages its decentralized nature is a significant point to mention. Centralized cloud storages hold the power of a particular data and negate its ownership. Filecoin gives back users the power of their ownership while protecting the integrity of the data.
Therefore, in Filecoin, people can easily become the custodians of their data. Additionally, the data is easy to retrieve at the same time, hard to censor.
2. Filecoin's Data Storage Service
Filecoin is the fastest, cheapest, and extremely secured alternative to centralized storage services. It provides individuals and organizations a platform to store their data at a fraction of cost but with the complexity of large industry competitors.
Clients receive a more flexible service in exchange for their FIL fee that permits them to pay for the amount of storage they need.
3. Filecoin's Open Market Service
With its unique mechanism, Filecoin creates an open market for file storage. Here users have the option to choose among the miners. They can find a miner who perfectly suits their needs and is cost-efficient, fast, and redundant. The Filecoin protocol reduces the barriers to entry and creates a decentralized environment of independent providers by negating the need for creating a different application programming interface (API).
No single company has control over the available storage and the price of that storage. Filecoin facilitates an entirely open market for storing and retrieving files allowing open participation for all users.
4. Investments And Partnerships
A significant factor that drives Filecoin's price this year is high and increasing institutional interest from China. The popularly known 'Grayscale effect' is one reason for its expected bull run. The crypto fund manager has recently announced its plans to show its support to altcoins, with Filecoin being one of them. The Filecoin investment trust is the principal fuel behind Filecoin's tremendous rally over March and April.
Yet another notable investment is from the Shenzhen-based computer hardware giant Xinyuan Technology. It has recently invested $89 million into the Filecoin mining ecosystem, making it one of the popular crypto tokens in the market today.
Also, the Block Dream Fund has announced its paid collaboration with Filecoin. It invested capital and resources worth $10 million supporting Filecoin's high-quality projects. These are few prominent factors that show Fileocoin's potential to be a millionaire-maker coin in the coming decades.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Could Filecoin Become A Millionaire-Maker Coin?
With the recent news of its investments and partnerships, Filecoin had a tremendous rally since the beginning of 2021. Additionally, IPFS has invested $1.3 billion to construct the Filecoin mining facility, aiming to be the most extensive Filecoin distributed storage Industrial Park in China. This has also sky-rocketed Filecoin's value in the market.
Filecoin has announced several partnerships and real-world applications, which could eventually drive its value to become a millionaire-maker asset and one of the most popular cryptocurrencies of 2022.
Final Thoughts
Filecoin presents a universal approach to cloud data storage systems. It is a unique cryptocurrency project backed by strong businesses and popular institutions. Therefore, in the internet storage space, Filecoin aims to bring in a wave of innovation, affordable pricing, and easy accessibility to all.
Considering all its projects and institutional interest, Filecoin could be the next millionaire-maker coin in the crypto space, establishing a unique concept of decentralized cloud storage.
Read More:
How to Identify Cryptocurrency Market Trends
What Are The Best Altcoins To Watch This Year?