Cloud-based file storage is currently dominated by Amazon, Microsoft, Google, and Dropbox. While these companies offer a great service, they are not immune to security breaches. This is because they are centralized, which means all information is stored at one location.
In the event of a hack, therefore, all information is vulnerable to being stolen.
By decentralizing file storage, we can make it much more secure and private as there is no one point of failure for hackers to exploit. The key to achieving this goal seamlessly, though, is how we incentivize people and companies to share their spare hard drive space with the network and consequently allow users access to all that space.
This is where Filecoin comes in.
Filecoin works by introducing a decentralized protocol that makes it possible to store user data on different computers around the world.
In this guide, we will look at what exactly Filecoin is, how it works, and whether it is a good investment. But even more importantly, we will be looking at some of the most recent expert price predictions to help you make an educated investment decision.
Contents
- What Is Filecoin?
- Filecoin Price History
- Filecoin Price Prediction For 2022 And 2023
- Filecoin Price Prediction For 2024 And 2025
- Filecoin Price Prediction For 2026 And Beyond
- Factors That Will Affect The Filecoin Of Filecoin In The Future
- The Future Of Filecoin: Will The Value Of FIL Rise?
- Conclusion: Is FIL A Good Investment?
What Is Filecoin?
Filecoin is a decentralized storage network that incentivizes users to rent out their spare storage space.
It is designed to be used by individuals and companies to store their data securely in a decentralized manner. This removes any kind of a central point of failure and eliminates the risk that all information can be hacked in one event.
The platform aims to become a direct competitor with traditional cloud storage providers such as Dropbox or Google Drive. The benefit of using Filecoin, of course, is that you no longer need to trust a centralized company with your sensitive data.
Instead of uploading files directly to the cloud, users encrypt their files and then upload them to the network. By splitting each file into tiny segments that are then encrypted and distributed on different computers around the world, it becomes impossible for hackers to access all information in one go.
The key difference between Filecoin and existing services like Dropbox is that there are no centralized servers involved. In fact, its architecture is completely decentralized and gives control back to the user.
The platform also introduces a new incentive system where users can earn money by renting out their spare storage space on Filecoin.
Filecoin operates on top of the Interplanetary File System (IPFS) protocol. This is a peer to peer file sharing protocol that makes it possible to have a truly decentralized web.
IPFS uses cryptographic hashing functions to split the original file into small chunks of data. These are then stored in different locations on other computers around the world. The idea is that even if one or more nodes go offline, you will still be able to access the complete file from other places.
Filecoin leverages the power of IPFS and introduces a new consensus mechanism for securing data that is known as Proof-of-Replication (PoRep). In simple terms, this means that storage providers who offer to store files are rewarded with Filecoins because they have been able to replicate the user’s data and make it available to download.
Apart from miners (users who store data), users are also rewarded for retrieving the data when requested by the owner. This means that when you use Filecoin, you pay for both storage and retrieval.
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Filecoin Price History
Filecoin had one of the most successful ICOs in the history of cryptocurrency funding. The coin raised more than $257 million in 2017, making it the most funded coin at that time. The ICO, which took more than a month, put Filecoin on the radar of many investors, which is why it grew fairly fast.
The opening price for the ICO was around $5 per token, according to Cryptorank.io. However, according to CoinMarketCap, the price of FIL in mid-December 2017 was around $11.5. By the end of the year, the coin had crossed $24 per coin and even went as high as $26.5 in mid-January 2018.
This was followed by a steady downtrend that saw FIL bottom out at as low as $6.8 towards the end of March 2018. It recovered slightly in late April and reached $15 but then started dropping again in May and went as low as $8.3 by the end of that month.
The journey from there wasn’t very pleasing, with Filecoin mostly trading below $5 per coin.
From around mid-July 2018 to late May 2020, the graph remained red, with the token playing between $2 and $6. According to CoinMarketCap, Filecoin dipped to its all-time low price of $1.83 on August 29th, 2019. That is around 1,811% less than the current price and a whopping 12,863% less than the coin’s all-time high price.
Luckily for Filecoin, the hugely successful ICO was not for nothing. From June 2020, the coin went green again on financial charts, and by mid-July, it had crossed $20 again. It then bounced between $15 and $25 per coin until around early October 2020, when it suddenly spiked and reached $60 in mid-October.
A week later, it was down to $24.5
Filecoin then traded between $20 and $40 per coin until early February 2021, when it suddenly adopted a steep uptrend that took it to its current all-time high price of $237.24 on April 1, 2021.
To put this into perspective, Filecoin rose from $38.2 on March 1st to $237.24 on April 1st, 2021. That is an impressive 521.047% gain in just a month. This looks very steep on a graph.
Unfortunately, as is the case with most price spikes, the price began plummeting, and by the end of May, it was down to $68.42. That is to say that Filecoin lost about 71% in two months.
So, it still remained afloat despite the devastating crash. It dropped further to as low as $44.65 in mid-July 2021 and then suddenly rose again to cross $115 in early September.
From there, Filecoin went on a steep downtrend and is currently trading at $37.71 per coin.
It had a market cap of $5.1 billion, making it the 37th biggest cryptocurrency by market cap.
Filecoin Price Prediction For 2022 And 2023
Although Filecoin recently crashed and has lost more than 80% of its peak value, it shows a lot of promise for rebounding in the near future.
Filecoin has a solid technology with great use cases. In the next two years, as cloud storage becomes more adopted, the project will likely pick and scale the charts to become one of the most valuable cryptocurrencies.
2022 has already kicked off, and Filecoin’s graph seems to be changing direction to upwards. In the last 24 hours alone ( at the time of writing), the coin has grown by close to 9% and looks like it might soon be crossing the $40 per coin price point.
Most of the predictions we have looked at seem a bit leisurely, with only a few indicating that the coin might cross $50 by the end of 2022. For instance, according to Wallet Investor, FIL will be worth around $37 by February.
By mid-April 2022, the coin might have reached $40. However, it will take some time before it goes to $50, as it will mostly stagnate below $45 per coin until the end of August. It will then pick up in September at $46 and close the year at $52 per coin.
The only other sites we have seen that believe Filecoin will cross $50 per coin in 2022 are Digital Coin Price which predicts that FIL will be worth $53 in December 2022, and Coin Price Forecast, which predicts a closing price of $53.6.
The most bullish predictions we have seen for 2022 are from Gov Capital which predicts that Filecoin will end the year at an impressive $88.5 per coin. That is clearly much more than what other sites predict.
In fact, according to Gov Capital, that won’t even be the biggest price for the year. The site predicts that FIL might go as high as $231 per coin in early April 2022. Gov Capital foresees plenty of volatility with Filecoin jumping from one price to the other.
There are also some pretty bearish predictions for Filecoin in 2022. For instance, Long Forecast predicts that the coin will start February at $35 then gradually fall to close the year at as low as $15.78.
It will then pick at $18.30 in 2023 and grow to as high as $38 by the end of the year. Digital Coin Price predicts that FIL will close 2023 at $62.61, while Priceprediction.net believes it can go as high as $76.37.
On the other hand, Wallet Investor predicts that the coin may go as high as $67.8 by the end of 2023. This is fairly low compared to Gov Capital’s prediction of $310 by December 2023.
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Filecoin Price Prediction For 2024 And 2025
According to Gov Capital, Filecoin might go as high as $630 per coin in 2024, with a lot of fluctuations throughout the year. It might then reach $890 in 2025 before crossing the coveted $1,000 per coin in early 2026.
Of course, this is a very bullish prediction when compared to the others. However, with all the unpredictability in the cryptocurrency market, we can really expect anything.
Most of the other price trackers remain conservative, with Coin Price Forecast predicting that Filecoin will close 2024 at $70.85 and 2025 at $88.96. On the other hand, Digital Coin Price predicts that FIL might be worth $63.11 and $80.91 by the end of 2024 and 2025, respectively.
Priceprediction.net is a bit more bullish than Coin Price Forecast and Digital Coin Price. The site predicts that Filecoin will close 2024 at $113.14 and 2025 at $167.6.
As usual, Gov Capital shows a lot of volatility in its predictions, and it is no different in 2024 and 2025. According to the site, Filecoin will kick off 2024 at around $308, which is much lower than most of the predictions for 2023. This means that Gov Capital foresees a downtrend, especially from December 2023 and early 2024.
However, within the first three days of 2024, Gov Capital predicts that FIL might spike and cross $420 per coin. It will then trade between $415 and $440 until the end of January 2021. February will then pick up at $427 per coin and won’t reach $500 until mid-March 2024.
From April, FIL will trade above $640 but will gradually fall to close the year at around $530.
Filecoin will then start 2025 at around $570 and cross $600 again within the first few days. Towards the end of January, the coin might cross $700 then quickly fall until mid-February when it resumes above $700.
The coin will then reach the $800 price point in late March and remain above that point until mid-May when it drops below $800.
Filecoin might, however, resume trading above $800 in early June with occasional drops below that level until the end of the year, where it might be worth about $865 per coin.
That means that Gov Capital does not believe Filecoin will reach $9000 in 2025 but is very likely to do so in early 2026.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Filecoin Price Prediction For 2026 And Beyond
For the long-term, experts like Gov Capital believe Filecoin has the potential to reach $1,000 per coin within five years (2027).
As we have seen from the predictions of the previous years, Gov Capital seems very positive about the future of Filecoin. The site is even more bullish in 2026, where it predicts the coin to reach $900 within the first few days and then cross the $1,000 per coin milestone in early February 2026.
By the end of 2026, Gov Capital predicts that Filecoin will be trading at above $1,200 per coin. This seems overly bullish when compared to predictions from other price analysts. For instance, Priceprediction.net predicts that Filecoin might end 2026 at an average price of $243 or a yearly high of $278.
According to the site, the coin might not reach the coveted $1,000 per coin price point until late 2030 where it will be worth around $1,095.46. It will then cross $1,540 in 2031 or even come close to $2,000 if the market conditions are right.
Coin Price Forecast, on the other hand, seems to lean on the bearish and predicts that Filecoin will be worth an average of $103.78 and $112.57 at the end of 2026 and 2027, respectively.
Following this trajectory, it is clear that Coin Price Forecast does not think that Fileocin will reach $150 even by 2033. This comes off as bearish when compared to the more bullish predictions like those of Gov Capital.
Filecoin is currently only ranked at number 36 on the list of top digital currencies with a market cap of $5.5 billion and a 24-hour trading volume of $816.2 million at the time of writing. It has a circulating supply of 145,049,057 FIL FIL tokens, with each token currently trading at around $37.7. This makes the coin quite affordable right now.
The Filecoin project has immense potential to grow in value as it is still in its early stages and offers low-cost transactions, especially compared to other coins like Bitcoin or Ethereum.
Furthermore, it aims to jostle the market share from existing cloud storage providers such as Amazon Web Services and Dropbox.
In addition to this, Filecoin has been designed from the ground up to be ASIC resistant which means it cannot be mined using large mining rigs only. This ensures a balanced distribution of wealth among miners instead of concentrating in the hands of a few with massive computational capabilities.
This gives it a great opportunity to grow tremendously in the next five years and become of the most valuable cryptocurrencies.
Check Out: Could Filecoin Be A Millionaire-Maker Coin?
Factors That Will Affect The Filecoin Of Filecoin In The Future
While it might be difficult to predict the prices of cryptocurrencies in the future, there are some factors that we can take into account to make a fair shot.
These include:
- The overall crypto market
- Adoption of decentralized storage
- Competition from similar services
- Government regulations
- The team behind Filecoin
1. The Cryptocurrency Market
The overall cryptocurrency market affects any coin’s value, including Filecoin (FIL). Positive developments like regulation or new products will open up newer markets and allow more people to invest in cryptocurrencies.
On the other hand, negative developments like hacks on cryptocurrency exchanges will result in immediate drops in prices.
2. Adoption of Decentralized Storage
There is still a very small percentage of people using decentralized storage compared to the traditional cloud storage offered by companies like Dropbox and Google.
Filecoin plans on changing this by increasing its awareness and use cases among the general public. This will ensure that more people join and increase demand for its services which will, in turn, drive up prices as well.
3. Market Competition
Another factor that will affect Filecoin prices is market competition from other similar coins as well as traditional cloud storage providers such as Amazon Web Services (AWS). If any of these companies launch their own cryptocurrencies or offer low-cost services on blockchain technology, they might reduce the demand for Filecoin and drag down its prices.
There are also direct blockchain competitors like Storj and Sia, which are already in the market. This is why it is important for Filecoin to improve its technology and attract more customers by offering low-cost services.
4. Government Regulations
Government regulations can either be a positive or negative factor. On one hand, regulations imposed by governments will help legitimize cryptocurrencies and allow investors to trust them even more.
On the other hand, if regulations are too harsh, they might restrict investment in Filecoin and other coins.
4. The Team
Investors can also look at the team behind a coin to predict future prices. The people leading a blockchain company and managing its operations will have a huge impact on how it performs in the future. For example, if an upcoming product is not delivered as promised or if there are too many technical issues, this might lead to a drop in prices.
In the case of Filecoin, it has a strong team consisting of experts from top companies such as Google and other Fortune 500 companies. This ensures that the coin will have a bright future even if there are some hurdles along the way.
These factors can help predict Filecoin prices in the next five years to get a better understanding of where the currency is going.
The Future Of Filecoin: Will The Value Of FIL Rise?
2017 was a great year for Filecoin and cryptocurrencies in general. While there were some setbacks, such as the ban of ICOs in some countries, they did not affect the value of Filecoin or other major currencies too much. If we take into account all these factors and combine them with the current scenario, one can expect steady growth in prices for at least the next five to ten years.
However, if a major event such as a product launch or a partnership with a large cloud storage provider happens, expect an increase in prices followed by a correction.
In any case, it is going to be quite profitable to own Filecoin in the near future. Compared to other coins such as Bitcoin and Ethereum, it is still relatively cheap. And as more people adopt the decentralized cloud storage offered by Filecoin, its value will keep rising.
Read Also: Is Filecoin Worth Buying?
Conclusion: Is FIL A Good Investment?
With an impressive five-year projection of over $1,000 by some price experts, Filecoin is a great investment. It has all the right factors in place for its price to skyrocket, including demand, market trends, and impressive use cases.
However, unexpected events can happen anytime, so do not invest funds you cannot afford to lose. Do thorough research before making any decision about investing in this coin.
And as always, this is not investment advice but just another perspective on Filecoin and cryptocurrencies in general. You should do your own research before making any decisions.
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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
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