Is Filecoin Worth Buying In 2023?

Last Updated January 5th 2023

6 Min Read

Is it worth buying Filecoin in 2023? The short answer is Yes!

Filecoin recently launched its mainnet, which means that the protocol is already rolling out. This is very important because it will allow investors to understand if this coin can be a long-term hold or not. Also, expect the price of Filecoin to rise over time as investors realize what it is.

Filecoin had one of the most successful ICOs of 2017, mainly because it was created by Protocol Labs, which are already established in the crypto space. This means that the network can actually undergo some development and make new partnerships without having to do too much advertising.

This token will benefit from a strong community, an amazing team behind it and novel technology.

The long-term price of Filecoin can be anywhere between $100 and $500, with the average price somewhere around $250.

At the time of writing this, FIL was trading at $28.62, which is over 88% down from its all-time high.

While it might not look like much now, you must remember that this token has started trading just a few years ago. It is still on its very first steps, so it will take time for it to recover its all-time high.

So, keep an eye on this one because, in 2023 or 2023, Filecoin might be one of the best buys out there.

What Is Filecoin (FIL)?

Filecoin is a decentralized storage provider that aims to eliminate centralized data storage. It operates using two interdependent sets of technologies: IPFS and the Filecoin mining network.

IPFS, or InterPlanetary File Storage, is a distributed file system that seeks to connect all computing devices with the same system of files. In conjunction with the decentralized Filecoin mining network, IPFS forms an incentivized structure that enables the creation of faster and exponentially more robust file services.

The storage needs of Filecoin are fulfilled through a decentralized system of miners who hold Filecoins. The Filecoin Network is made up of many independent nodes which can fulfil storage requests by storing pieces of user data.

A decentralized storage network (the Filecoin Network) is made up of many independent nodes, also known as “Miner” nodes or “Data-Nodes”. These nodes may be located anywhere in the world and are responsible for storing pieces of user data on their local drives.

Miners are rewarded with Filecoin for storing these pieces of data. In return, the user pays the nodes a certain amount of Filecoins to retrieve their files from any one node on the network.

The Filecoin ICO took place in August 2017 and raised over $257 million – at that time, making it one of the largest token sales ever.

The Filecoin network is developed by Protocol Labs, with FIL being its native token.

Check Out: Could Filecoin Be A Millionaire-Maker Coin?

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

So, Should You Buy Filecoin In 2023?

Well, there are several reasons to buy this crypto in 2023:

Mainnet launch - This might be the single most important factor that will decide if Filecoin is a good choice for you. The mainnet was launched in October 2020, which means that Filecoin now has a stand-alone blockchain.
Partnerships - As mentioned above, this coin has been created by Protocol Labs, which are already well established. That being said, expect some good partnerships in the near future which will increase the price of Filecoin.
Great team - Protocol Labs are already established in the crypto space, which means that they know what to do and how to make it work.
Novel technology - The Filecoin network is one of the most innovative out there due to its utilization of both blockchain and IPFS (InterPlanetary File Storage).
Growing Community - Every crypto project has a community that will usually dictate if the coin is good or not. Since Filecoin is fairly new, it does not have a large community yet, but the ones that are there are extremely supportive of this coin which means that their message will spread on its own.
Favourable Regulations - When you make money with cryptocurrencies, you need to be aware of certain regulations because some countries do not allow mining or trading cryptocurrencies. This is not the case with Filecoin, which means that this cryptocurrency might be legal in more countries than some of its competitors are. For instance, Filecoin has massive support in China, where most cryptos suffer strict regulations.

Overall, buying Filecoin at around $28 with a market cap of only 4 billion USD might be one of the best options you have when it comes to short-term crypto investments.

Otherwise, make sure to do your own research, as making money from cryptocurrencies can be very risky.

Risks Associated With Filecoin Investment

It's common knowledge that cryptocurrencies are unstable and unpredictable, which means that you should never invest money that you aren't prepared to lose.

Filecoin is no different. Since it's a fairly new coin, there are several factors to take into consideration before investing in it. First and foremost, check its price as it is likely to be highly volatile for the foreseeable future until more people start using Filecoin.

Other than that, you should always wait for a major dip before purchasing coins. This way, you will be able to buy it at a reduced price which is often the best option.

The most important thing, however, is to always define your needs and expectations from this coin. This way, you will know exactly what you want and how much you are prepared to risk.

Having said that, here are some risks you might be exposed to when you invest in Filecoin.

Market volatility - The price of Filecoin is extremely volatile because it's still a fairly new coin. What this means for you is that the price might increase rapidly overnight and then drop back to its starting point within a matter of hours or days. This makes it very hard to predict if the coin will go up or down in the future.
Technology risk - The technology behind cryptocurrencies is still very new, which means that there might be issues with the code or any of its components. This could mean that Filecoin will not work as it should, but then again, such cases are usually solved within a few weeks or months, and they never affect more than 1-2% of all coins.
Competitors - Every cryptocurrency out there has competitors that may or may not become a threat to its success. Filecoin has several competitors out there, which might affect the price of this coin either positively or negatively. By being aware of these competitors, you can predict what's going to happen with the price in the future.
Negative press - If Filecoin were to be a victim of negative press from major publications or social media platforms, both current and prospective investors might lose faith and drop the asset. This will cause the price to fall sharply result in losses for many people.
Regulations - Government regulations are always changing, and they can either benefit cryptocurrencies or make their existence impossible in certain countries. If certain regulations were to affect the operation of Filecoin, it will affect its growth and make it a risky investment.

Conclusion: Is Filecoin Worth Buying?

Filecoin is one of the most disruptive cryptocurrencies out there right now. It is backed by top technology, has a strong team and aims to revolutionize cloud storage services. This coin can be used to rent out your spare storage space, which provides you with passive income.

You can also earn Filecoin by hosting files on your computer or using it to purchase storage space from other people, which makes it a great long-term cryptocurrency.

However, since Filecoin is still very new and has seen major price fluctuations lately, make sure to always do your own research before investing in this cryptocurrency.