Is Filecoin mining profitable? Filecoin is one of the most profitable coins to mine. However, how profitable is Filecoin mining? Let’s look at the costs of mining a Filecoin.
First, calculate the mining cost of a Filcoin and learn the future market of Filcoin, and then you can know more intuitively whether it is worthwhile to invest in the market now. Keep Reading!
What is Filecoin Mining
Filecoin is an open-source, cloud-based decentralized storage network (DSN) built to maximize data storage and retrieval. The Filecoin network leverages a mining, storage, and retrieval mechanism that connects storage miners (providers) and retrieval miners (servers) with clients who pay to store and retrieve data. Network participants receive and send tokenized rewards in the form of Filecoin tokens (FIL) for providing services on the network. In an effort to accomplish this exchange of data and make the network transparent and equitable for all users, Filecoin’s system employs specialized cryptographic proofs to verify the quantities and types of files on the network. This is designed to help safeguard against inadvertent alteration of the files.
Read More: How to Mine Filecoin: Complete Guide (Steps)
How Much Does it Cost to Mine a Filecoin
There are three types of physical mining machines: 14T, 96T and 192T. Taking the 14T mining machine as an example. The pledged currency and GAS fee are paid by itself, and the pledged currency will be returned when no mining is performed. And now the gas fee is basically reduced to negligible. Therefore, pledged coins and Gas fees are not included in the cost of Filecoin mining, that is, the mining cost is about $6,000 for the machine.
Although the mining machine is used permanently, the time is too far away, we will not calculate it for the time being, and only calculate the total output for five years.
Taking into account the attenuation of the Filecoin network’s currency production, we will directly calculate the output by halving every second year.
Now 0.049 FIL coins are produced in a single T day. The effective computing power of the 14T mining machine is 14T, the daily coin production is 0.049X14=0.686FIL, and the total coin production in the first year is 0.686X365=250.39FIL
Calculated according to the model of halving each year, the total currency output in five years is 485.13FIL, minus 20% of the technical service fee, the actual hand is about 388.1FIL
The coins in hand in five years are 388.1 FIL coins. The input cost is $6,000, so the five-year input cost divided by the number of FIL coins obtained is the cost of producing one FIL.
That is to say, the cost of a FILcoin is 15 US dollars, and only when the currency price falls below 15 US dollars, will there be a loss.
Is Filecoin Mining Profitable?
Today, Filecoin has gradually improved, developed steadily, and the ecology has gradually landed. The real data storage has reached 15P. The next step is large-scale real data storage and retrieval, and has been obtained. With the cooperative development of many scientific research institutions and capital in the world, the value of the Filecoin network has been gradually revealed.
As so far, it is the first and only currency in the currency circle that has the application of physical projects and provides value support.
The funds in the currency circle are all speculative. In addition, the overall market in the currency circle is relatively sluggish, and the enthusiasm of funds has been severely reduced. The price of FIL currency has been affected by the sentiment of the encryption market, and the price has been hovering at a low level.
The FIL currency supported by value, the short-term market is driven by market sentiment, and the long-term market is driven by value. Because the price fluctuates around the value, which is the manifestation of the law of value, so the long-term FIL currency price fluctuates upwards. Today’s FIL is like the early Bitcoin.
During the growth of Bitcoin, although there are more than 90% rises and falls, in the long run, it is also fluctuating upwards, with gradually rising low points and gradually rising high points. Today, no matter how sharply it rises and falls, it is almost impossible for Bitcoin to fall back to the initial price below $10. In the current market situation, when the sentiment reaches a certain critical point, it will be the beginning of a rising market.
Advantages and Future of Filecoin Mining
Filecoin solves many problems of IPFS:
- First, solve the problem of low cost and high performance of IPFS network storage, and improve data security at the same time
- Second, solve the power problem of IPFS data distribution nodes
- Third, compared to Bitcoin with high energy consumption, Filecoin consumes less energy and is more environmentally friendly
- Fourth, Filecoin is one of the few blockchain projects that is closely integrated with the real economy and can be implemented
- Fifth, to boost the popularity and investment of IPFS, through Filecoin incentives, distributed storage and retrieval based on IPFS will gain a huge incremental market
Entering the era of big data, countries all over the world attach great importance to the new heights of big data technology. The emergence of IPFS/Filecoin has aroused great concern. IPFS/Filecoin has a broad consensus in the world and has been supported by many scientific research institutions and capitals around the world. Cooperation, some ecological landings, 15P real data storage, the next step is large-scale data storage and retrieval.
IPFS/Filecoin is the only landing application in the 10-year development of the blockchain, and it is also the foundation of Web3.0. Many large companies and media have made related introductions. It is the hottest in the entire currency circle and storage track. The most concerned landing project.
The core value of the Filecoin network lies in the safe, efficient and low-cost storage of data. The blue ocean potential of the IPFS/Filecoin market is huge.
At present, the growth of global network data is still exponential. With the gradual improvement of the service layer of IPFS, Filecoin will inevitably develop into a trillion-dollar market.
Conclusion: Filecoin Mining is a Good Investment
Filecoin mining is a long-term value investment, ignoring short-term currency price fluctuations. The arrival of the digital economy era is inevitable. The arrival of big data has become a reality.
IPFS/Filecoin emerged as the times require and has become the infrastructure of the digital economy. It has received global consensus and a huge market. IPFS/Filecoin is doomed to be of great value. Investing in Filecoin follows the trend of social development and the development of science and technology. It is worth waiting and watching!
Can Filecoin be Mined?
The Filecoin network operates on agreements made between a customer and a miner for a storage ‘contract’. When a client chooses a particular miner to store its files, basing the choice on its capacity, duration and price, it blocks sufficient funds in an associated wallet to cover the total cost of the contract.
Why Filecoin is so Popular?
At its core, Filecoin is a decentralized protocol that allows users to rent out spare storage space on their computers. Naturally, people can also buy available storage listed on the network. Filecoin’s worldwide network is free to join, opening the door for vast data storage to become available for use.
What is needed to mine Filecoin?
The requirement for mining Filecoin is a computer with the following specifications: CPU (AMD with 8+ core and supports Intel SHA extension), GPU, RAM (minimum of 128 Gb), strong internet connection, NVMe-based disk (1TB minimum), and a Filecoin wallet.