Cryptocurrency trader Elliot Wainman believes the native tokens of decentralized storage network protocols are set to go parabolic.
Wainman cites the recent rise of Filecoin (FIL) as an example. He says the coin’s resurgence appears to be largely driven by Chinese crypto market participants, and is set to continue.
“[Filecoin’s rally] is all being driven by the fact that major Chinese officials have started to actively encourage Filecoin mining…”
The trader points to Siacoin (SC) and BitTorrent (BTT) as additional cloud storage platforms that are picking up steam.
“[Filecoin’s rally is] having ripple effects throughout the entire cryptocurrency world. We’ve also seen huge pumps in storage coin Siacoin which is up almost [200%] over the last month.”
Wainman points out that mining Filecoin requires participants to own the cryptocurrency.
“…the actual tokenomics behind Filecoin require people to buy Filecoin to mine Filecoins. You can’t just mine it like a Bitcoin by buying an ASIC – Application Specific Integrated Circuit…
That is a phenomenal tokenomics structure for Filecoin holders. And essentially this is leading to an explosive and parabolic snowball effect here for Filecoin mining and Filecoin purchasing.”
The YouTuber adds that China’s reasons for supporting Filecoin include a drive to reduce over-reliance on the Western dominated internet infrastructure.
“[Filecoin’s] decentralized cloud storage purpose fits into China’s agenda to build out its own internet infrastructure as a defense mechanism against the tech cold war. This is what’s going on with the American and China rivalry with tech.
Apparently, China sees decentralized storage as a key to essentially guarding against internet infrastructure that has more or less been dominated by western influences like Amazon Web Services, Facebook, Google… almost all of these, except for Alibaba and all of their infrastructure. It’s mostly a western game here with the internet infrastructure.”
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