How to invest in Filecoin

In the perception of many people, Filecoin is the next wealth code. Filecoin involves a wide range of investment fields, such as mining, secondary market transactions, cloud computing power, mining machines... But at the same time, the Filecoin market is developing wildly and wildly, which also leads to many hidden pits in related investments.

What investment opportunities does Filecoin have for different groups of people, and what investment risks should we pay attention to? In the first session of the Filecoin Talk of the Beep Roundtable, Camille, the big cousin of the blockchain, Shen Yingzhe, CMO of Interstellar, Secretary General of Glacier Lab, and Scarlett Zhang, CMO of Athena Mining Pool, chatted about the way of investing in Filecoin. The following is the live broadcast record :

Camille: Where is the investment value of Filecoin? How did the two invest in Filecoin?

Scarlett Zhang：Filecoin is a good investment target. Policies encourage infrastructure construction, and social development has a large incremental market for data cloud storage. Filecoin has proposed a safe and reliable storage solution, which is favored by venture capitalists. We have also seen miners actively investing in the network. Filecoin's economic model , there is a very strong force in the consensus.

Shen Yingzhe:The main way for ordinary investors to participate is through mining. Hardware accounts for 30% of the user's income, software and code optimization account for 30%, and mine operation and maintenance account for 40%. The larger the share that users invest in the machine cluster, the faster the payback cycle.

Filecoin is the first step for the blockchain to really start to land. This is the value of Filecoin, and it is the first time that the blockchain has entered the traditional industry, allowing users to deeply understand it.

Camille: An important point of investment is to look at the team behind it. What is your judgment on the Filecoin team? How do you evaluate Filecoin in terms of economic model, project code, and roadmap advancement? For example, it may choose to sacrifice the interests of miners for the long-term development of the project?

Scarlett：We have been paying more attention to Protocol Labs. In fact, there are not many personnel in Protocol Labs, but they are all talents with first-class development capabilities. One of the bright spots of the founder, Juan, is his strong financing ability. I was a VC before, and financing ability is very important for the project.

Judging from our participation experience, Protocol Labs lacks experience in large-scale cluster engineering management, but this is okay, because there is a process of growth and trial and error.

To judge whether the project is good or not, we will also look at the technical code, the establishment of the economic model, etc. Recently, everyone has been discussing the economic model. Many people think that the Filecoin economic model is not friendly to the miners. Those that meet the overall goals and demands, such as pre-staking, are essentially to prevent the excessive growth of computing power, because if there is insufficient storage demand in the later period, the price of tokens will fall.

Protocol Labs hopes that miners can really participate in the network for storage itself and reduce the weight for mining purposes. Protocol Labs believes in long-termism, but the ideal is full, and the reality is for the purpose of making money. The overall game is difficult. We have also seen that Protocol Labs has updated the economic model in the space race, and unlocked tokens can be used as a pre-stake. I understand the painstaking efforts of Protocol Labs, but as a representative of the miners myself, I also understand the starting point of the miners.

I am still willing to accompany the team to grow. Because it is necessary to leverage tens of billions of infrastructure investment, such a team is difficult to be replaced. Second, all teams have come step by step, working overtime to do tests. The whole process is so intense and difficult. In this process, Filecoin Innate is an advantage.

Shen Yingzhe:The economic model is a three-party game. The formulation of the economic model needs to satisfy the interests of the three parties, and the roadmap can only be advanced after it is fully satisfied. Regardless of whether Filecoin will fork or not, we must be loyal to our investors, choose better solutions for investors, and help users shorten the return cycle.

According to the current economic model, users may not be able to obtain income in the first three months, and all FIL issued in three months may be pledged. Positive returns will not appear until three months later, so we advise users not to increase leverage at first. The current economic model is the worst, as long as there is a slight change in the economic model, it will be good for users.

Camille: The Filecoin economic model is not particularly friendly to current miners. Is it still profitable to invest in computing power and conduct Filecoin mining?

Shen Yingzhe:Filecoin mining is definitely profitable, as I said before, Filecoin investment is "huge rich". If it is reasonable to invest in Filecoin, if you are speculative, then I do not recommend it.

Scarlett：In the short term, pre-mortgage is not friendly to miners, but in the long run, this economic model is very healthy.

Now many miners have invested so much, why they invest so much must be because they feel that Filecoin has the potential to explode. Although the pre-mortgage pressure makes small miners feel more passive, but with the launch of the mainnet, FIL is circulating in the market, and with some financial services, after the development of derivatives, there should be many solutions.

Camille: Because of the design of the Fil economic model, many friends told me that FIL futures can now be bought on the exchange. What do the guests here think about this issue?

Shen Yingzhe:Personally, I do not recommend buying FIL futures.

Scarlett：Many exchanges have launched futures, but the depth is not high. In the short term, within 6 months, I think there are still many game factors. From the perspective of the cashing ability of the exchange and the dynamic balance of FIL's multi-party game, there are still some risks. Everyone should remain rational.

Camille: What are the possible risks and pitfalls of Filecoin investment?

Shen Yingzhe:This project is for anyone to cross the river by feeling the stones. The risk points come from the investors themselves, such as the introduction of leverage. Filecoin is brand new to many people. Filecoin can be regarded as a social practice. For example, I make 10 people rich, and then 10 people lead 10 people to get rich. In terms of investment ratio, I think that if you think you are 90% sure, you can invest 40% of your funds in Filecoin, and if you are 50% sure, don’t invest.

Scarlett：Some friends came to ask us if it is possible to vote and how to vote. Considering factors such as the unevenness of good and bad manufacturers, the complex economic model of Filecoin, and the uncertainty of the denominator (total effective global computing power), we still hope that everyone can be more cautious.

It is necessary to choose manufacturers with clear input and output; because we can see that the investment of mining manufacturers in the early stage is already a relatively large economic volume, we also expect that after the main network is launched, some funds will come in from the secondary market, and the risk of multi-party games It has to be considered. When everyone expects the same, you need to pay attention to risks. In addition, you can also see if there are any Filecoin application parties joining in the market, and verify the market demand. This is the logic of the long-term support of the currency price.