Updated: Jun 29, 2022
In this week's newsletter, I am researching Filecoin, a decentralized cloud storage network for data. Filecoin is basically a cryptocurrency that incentivizes a global network of computers to provide storage... it's like having a storage unit in every state, each storing a cherished box of your pet photos!
Filecoin rewards users FIL tokens for renting out free storage space on their computers (so far 3,600+ storage providers supply 15+ exbibytes of decentralized storage).
Filecoin is a cheaper, faster, and more secure cloud storage option than centralized platforms like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud. With decentralized storage, the availability of data is not dependent on any one server or company.
Filecoin is already 5.75x cheaper than Amazon S3’s base tier. Filecoin = $0.048/GB/year, AWS S3 = $0.276/GB/year
Filecoin revenue was $110,000,000 in the last 365 days.
UC Berkeley is using the Filecoin network for storing research data. By using decentralized cloud storage, Berkeley's research will maintain autonomy over the data, rather than relinquishing control of data to a centralized platform like AWS.
Lockheed Martin is using Filecoin to build a decentralized storage network in space. A centralized, earth-based network like AWS would not be fast enough for data required on space missions.
Filecoin is the official storage partner of the Flow Blockchain providing decentralized storage for NFTs minted by Dapper Labs. Dapper Labs is the company behind CryptoKitties, NBA Top Shot, and more!
Grayscale Investments offers a dedicated Filecoin Trust investment option. Grayscale Investments had $43.6 billion in crypto assets under management (AUM) as of Dec. 31, 2021.
The IPFS Union announced a $1.3 Billion investment in Filecoin mining infrastructure with the goal to add a Zettabyte of storage capacity. AWS, Azure, and Google Cloud store in aggregate less than a Zettabyte of storage and have a market cap in aggregate of ~$1.5 trillion (Filecoin's peak market cap was $12.3B, just 0.82% of the cloud storage market).
The Winklevoss twins are investors.
Cryptocurrency competition for Filecoin includes: Theta Network, Storj, Siacoin, and Arweave
I bought Filecoin today at the price of $5.57 per FIL via Gemini (plus with Gemini Earn our FIL earns 7.25% APY). While the macro environment isn't the hottest (inflation, interest rate hikes, war, and probably a real-life Independence Day next month where Will Smith slaps an alien), you could also dollar cost average into Filecoin over the next two months and hopefully snag it for $3-$4.
All-Time High (ATH) = $191.36
Buy Target = $5
Portfolio Allocation = $1000 or 2-3%
Filecoin Price Prediction (10+ Year Hold) = $250+
I am not perfect (even if my mother thinks I am), but I think it would take another leverage crash (Celsius, 3AC, etc.) to push Bitcoin much lower. I have limit buy orders placed on Ethereum (at $300) and Bitcoin (at $12,000) just in case we get a crash lower. If you missed my research on ETH and BTC, check out these two resources to get caught up:
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