Recently there has been a great deal of controversy surrounding the claims made by blockchain-based storage network and cryptocurrency Filecoin. The company has asserted to potential buyers that they can recuperate the costs of becoming a Filecoin miner within three months by investing US$40,000 to become part of the “first batch of miners”, and also claimed that the price of the token will rise more than ten times over the next two years. Some experts are sceptical, pointing out that the mining machines of Filecoin have already been selling well in Mainland China since last year, and Filecoin futures have been selling for a while despite the new token not yet being launched. Hence it would seem that the train to become a first batch Filecoin miner already departed a long time ago.
Standard Kepler’s Managing Director David Tang explained to Bastille Post (巴士的報) that the mining principle of Filecoin is very different from that of Bitcoin. “The mining rewards of IPFS depends on miners’ contributions. If there is only a small amount users, then you won’t gain any Filecoin as nobody is using the storage capacity that you have contributed.”
Mr. Tang pointed out that Filecoin already offered futures trading before its launch, and that the Filecoin futures price has slumped to US$7 from a high point of US$30. “To claim that new miners can still be part of the first batch of people who own Filecoin after such a long period of futures trading, it simply makes no sense.” Tang said, that although he admires the idea of IPFS, he doubts the claims that Filecoin will sharply appreciate in the near future. “If you believe in the concept of IPFS, then you should also expect storage capacity to be getting cheaper. Based on this theory, how can the price of Filecoin go up?”
Tang described crypto mining as being “out on a limb”, stressing that mining machine investors have to bear unstable crypto prices and also the common occurence of stolen mining power. Mines provide an array of excuses such as broken machinery or downtime for maintenance. He reiterated the importance for investors to have a firm understanding of cryptocurrencies before choosing to participate in mining.
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