What is Filecoin (FIL)?
Filecoin is an open-source protocol that stores data online using blockchain technology. Created by Protocol Labs, the decentralized storage network allows users to rent hard drive space that they can manage on their own or have Filecoin do that for them. Anyone can add and retrieve their NFT data on the network, keep this idea in mind!
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NFT's and Filecoin...
When you buy an NFT you need to keep him somewhere, the technology behind Filecoin is a way you can use to Protect your NFT's. Before the NFT's explosion, Filecoin was just a project that we needed to, but not that important, but after NFT's their project became one of the main places where you can keep them safe. Filecoin says it is uploading one non-fungible token (NFT) per second on its decentralized storage network, or about 86,400 NFTs each day.
But, What happens to Filecoin? Why is losing its value since March 2021?
From February to March in 2021 Filecoin exploded gaining 1000% going from 20$ to 200$ in weeks but since then the value of this project is decreasing. This decrease is due to a lot of reasons:
Their Supply -> When Fil hit 200$ the Circulating Supply at the time was 50,000,000 Then they released 100,000,000 more which made the price go down.
Also Bitcoin -> When BTC drops 50%, Altcoin suffers much more than that and Filecoin was no exception on this one.
Why I still believe in this Project:
- I believe that NFT's in the next bull market is going to explode even more, because of that Filecoin is going to be used even more which is gonna increase its value.
- The second reason is the most important for me. I see in Filecoin a lot of similarities with ADA, first, the community is very patient and strong, the second reason is the behaviour of their charts, in 2017 ADA exploded within weeks going from 0,03$ to 1,32$ but after that started to go down until 0,03 again and stayed there for 4 years until the begging of 2021 when started to go up again until the 3$ price.
What We Should Expect From the Future?
Although Fil has already dropped 90% of his ATH I would not be surprised if FIL goes to 10, 5, or 2 dollars, Because BTC is still at 42k and if he drops to 30k or 20k Fil will go with him.
I don't really think NFT's are done yet and the next bull market could be their year, which means Fil will have a little help increasing its value.
Finally, I think in 3 to 4 years we will be more integrated into the Digital Era and because of that, storage is going to be needed to keep data Fil is going to be one of the ways to do it.