All coins have risen, but FIL is still hovering at a low level, why? | Roast Star Selection
Today, the big pie has stabilized, and various altcoins have finally begun to make up for the increase. BSV has finally risen too. Of the few coins I have been planning in the early stage, only FIL is still hovering at a low level.
I have always been more optimistic about the currency FIL before. Before the mainnet of Filecoin was launched, the storage sector was very popular. After being considered a hot spot of cross-chain, it was the next hot spot in the currency circle. But the reality is cruel. FIL opened at $200, and then plummeted until it stabilized at around $50 the next afternoon. After two and a half months, the price of FIL dropped directly to around $20, which is a perfect interpretation. There is no minimum, only lower.
In such a situation, I still bought it, because in my opinion, the concept of Filecoin's IPFS storage is very avant-garde and very promising. Even if it is relatively low now, it will eventually rise. But I am a little shaken now, because even in the case of Bitcoin's rapid development, FIL is still rock-solid and calm, which is too difficult. Next, let's talk about the Filecoin project.
Filecoin is a project developed by Protocol Labs. It is a peer-to-peer, decentralized distributed storage network. Protocol Labs was founded by Mexican Juan Benet (Juan), backed by Sequoia Capital, Stanford University Capital, YC Capital, Winklevoss Brothers Fund, Fenbushi Capital and other investment companies. Both Filecoin and IPFS are projects of Protocol Labs. Filecoin is like adding a token incentive model on the basis of IPFS.
Because of such a background of financial strength, Filecoin has always been advocated in China. It has been preaching in China since 2018. Filecoin is also regarded as a project comparable to BTC and ETH. But after Filecoin went online, the bubble burst.
The launch of Filecoin's mainnet has also been delayed again and again, and finally on October 15, 2020, the Filecoin mainnet, which has been bounced many times, was launched. As a result, the news came out on the day it went live, saying that there was a bug in Filecoin. Some people found that the test coins of the test network nodes can be traded in the secondary market after the main network goes live. The official strongly denied the clarification, saying that it has been a long-standing plan to directly convert the test currency into the mainnet currency. There is no official data on how many test coins were converted, but it is certain that this number must be quite a lot, and then FIL also plummeted.
In fact, I think the main reason why the price of FIL currency cannot rise is that the technical difficulty is too high, and it is difficult to achieve large-scale application.
The original vision of Filecoin is to create a storage network, and all idle hard disks around the world can be connected to this network and provide storage and retrieval services to customers. Customers pay FIL for this service. This idea is very good, but it is too difficult to realize.
Filecoin is only suitable for storing cold data, that is, static data, such as videos, pictures, documents, etc.; it cannot interact and verify hot data (such as dynamic web pages, games, AI intelligence, etc.). In this case, Filecoin's TPS is very fragile, network congestion has become the norm, and bugs continue to appear. This may also be the reason why the Filecoin project has been pushed again and again. The technology is not mature enough to realize the application.
Objectively speaking, the idea of the Filecoin project is very good, the popularity is enough, and there are enough funds to operate. However, the technical public relations are too difficult to realize, but there will be progress only if there are difficulties. Maybe one day, the entire Filecoin project will be successful, and it is possible. Let's bless it and look forward to Filecoin's success.
