Why are so many people mining Filecoin?
Filecoin is an interesting business model because it is very different from many existing blockchain projects.
Many digital currencies are based on consensus algorithms such as PoW, PoS, or DPoS. Filecoin has a different consensus called Proof of Replication (PoRep) and Proof of Spacetime (PoSt).
Filecoin rewards miners who provide data storage, not computation power. People use hard disks to mine Filecoin. For Proof of Work mining, miners need more electricity, GPU, FPGA, and ASICs equipment to be competitive. Filecoin miners are working mainly to create data storage capacity, using SSD and HDD hard disks.
Filecoin has created a brand-new crypto mining market. It is changing the rules for the digital mining industry.
Why is Filecoin working to create data storage?
It is estimated that people create around 1.145 trillion MBs (megabyte) of data PER DAY. As society relies more and more on digital data to work, study, socialize, and shop, especially with the emergence of 5G and other technologies such as the internet of things (IoT), data storage needs are expected to increase exponentially.
Currently, Amazon Web Services (AWS) has 32% of the world’s cloud storage market, while Microsoft Azure has 19%, which means that 51% of the world’s data storage is held on the servers of two companies. Having so much of the world’s data on centralized servers will continue to lead to more and more server outages and data hacks that are becoming common today.
Filecoin’s peer-to-peer network is much more efficient and secure than centralized servers that are under corporate control. Filecoin’s network also achieves staggering economies of scale by allowing anyone to participate as a storage provider and compete for cloud storage business.
Which is better – buying Filecoin mining equipment or purchasing Filecoin on the open market?
While the initial investment for a mining machine may seem high, mining new Filecoin is usually much less expensive than it is to purchase it at the market price.
Once you have mined new tokens, you can decide if your tokens(s) are at a price where you want to redeem them. If you like, you can hold on to your tokens until the market price is where you would like it to be.
Is Cloud Rush different from other Filecoin mining platforms?
With Cloud Rush, you are purchasing actual equipment to mine cryptocurrency. Once your 5-year term is completed, you can take possession of your storage drives or mining equipment if you wish. You can monitor your equipment and view your tokens on the Cloud Rush App.
Is now a good time get into Filecoin?
Absolutely! The cost to mine new tokens is currently a fraction of their current market value.
Filecoin Mining | Cloud Rush