Filecoin interview
Filecoin interview

XRP Whale On Filecoin New Found Popularity

July 13, 2020

Hello everyone,

This is Tian, CEO of TEAMZ.

2019 TEAMZ opened our media channel ChainTalk.

2020 ChainTalk became a total online live event and social media channel welcoming projects to join ChainTalk and host online events.

These days IPFS and Filecoin got a lot of attention from the whole blockchain and crypto community.

Filecoin is a decentralized storage network designed to store our most important information. People also call Filecoin as a decentralized storage AirBnB.

So today, I invited one of my best crypto expert friends who is also one of the global Ripple (XRP) whales, investor Seth Lim. From investor point of view we will talk about why Filecoin is getting so much attention.

1. We know that you are one of the XRP whales in the world, what reasons made you invest in XRP in 2013?

Ripple focus is to be used by banks.

The more banks use it as their transaction platform, the higher the value of XRP.

If one day, all the banks decide to start using it as a unified bank currency instead of processing redundant currency exchanges – it will make a nice fortune for all the early birds who invested in Ripple.

Strong support from prominent VCs such as Google Ventures, Andreessen Horowitz.

2. Do you still keep all the XRP that you have or you are trying to separate your wealth to some other project?

I try to diversify my wealth aside from the gains of XRP and initially started off with investing only in early blockchain projects with strong ecosystem use case such as (MCO &CRO) a cryptocurrency company that began its service by offering VISA-powered Cryptocurrency payment cards in 2017.

VeChain which started off as helping luxury goods brands to integrate blockchain and IOT technology into their projects.

One example of this is branded bags equipped with VeChain chips so users can verify if the handbags are genuine or fake on blockchain.

Invest in luxury/vintage Watches.

Buying the right watch is just like purchasing stock in a company like Facebook or Google as a blue-chip stock except that you get to wear the watch which also grants personal benefit especially in events where the watch could be used as a tool to strike up conversation.

Mining in BTC and alt cryptocurrencies.

My philosophy on mining cryptocurrencies hasn’t changed since I first heard about Bitcoin in 2011.

It is more straight forward in terms of identifying the factors to profit as compared to trading and speculative buying.

I did Litecoin mining before my investment in XRP after that I invested in a network of BTC mining farm and most recently Filecoin mining which is a game-changer as I no longer have to focus on electricity cost as the main factor.

3. Do you believe that Filecoin will lead the entire blockchain/crypto industry go to the next phase into a sustainable blockchain ecosystem?

What made you decide to invest in Filecoin and how will you join this new blockchain / crypto trend?

Yes, as Filecoin, built on IPFS, is the obvious next step to upgrading the internet by creating a decentralized storage network.

The amount of data stored on the web will continue to increase exponentially.

Sharing my opinion as someone who has knowledge in cybersecurity, most storage capacity (disk space) is unused and we rely on centralized and vulnerable central points to store data.

Filecoin solution will introduce an intelligence and economic layer to harness the world’s storage power more efficiently and to create a more resilient, safe and efficient market for storage.

This also means that the Filecoin token will have a real utility value — i.e. the ability to purchase storage space and the ability to earn for providing storage space.

As an investor with technical knowledge, for early mover advantage I am going in during the testnet to participate in the upcoming collaborative competition intended to stress-test the network.

In terms of long term approach for Filecoin, I will be setting up infrastructures to support Filecoin mining and also looking to partner with traditional companies to switch over to our storage sectors once mainnet is up and running.

4. What’s the IPFS and what’s the connection between IPFS and Filecoin?

There is no proper way to differentiate between Filecoin and IPFS as Filecoin simply runs on top of IPFS.

While IPFS enables storage and content-based addressing, Filecoin is mostly leveraged to incentivize users for curating content into IPFS.

5. Do you believe that IPFS can really take over HTTP?

By far, the biggest distributed file system is still HTTP, which is a web server used to upload data.

Then, other peers can access to a particular data to ensure the data accessibility in web servers, a maintaining cost is needed to pay.

Such maintaining cost increases along with the growth of data popularity.

HTTP lacks upgrading design and thus fails to take advantages of the advanced file distribution techniques proposed in the past few years such as P2P file systems like BitTorrent.

It will be challenging for IPFS to take over HTTP even though it is starting to be outdated unless we start to see severe security breach in leading web server hosts but I do think that the first transition from HTTP to IPFS would be from the Dark Web since the focus is on privacy and decentralize.

6. In 2015, Filecoin received $257 million in crowdfunding only in 60 minutes, YC incubator, Winklevoss Capital, Sequoia Capital, DCG and many other well-known investment institutions have participated in the investment.

With the support of leading investment institutions in these industries, can this prove that Filecoin will be a huge success?

Because of IPFS and Filecoin trend there are so many investors are trying to join this game.

Can you share with us how to participate in Filecoin rationally and how to escape the risks from your experience and knowledge?

With all these well-known investment institutions, it will prove that Filecoin will be a huge success due to the fact that these investors will make their way to promote Filecoin and act as a track record for more adoption as traditional companies may not know Filecoin but they will consider Filecoin upon seeing the list of angel investors and VC.

Using Ripple as an example, in Japan ever since SBI invested into Ripple XRP, it has been a strong partner in promoting the technology and adoption into SBI Remittance ecosystem.

And in the case of Filecoin, it will be listed on New York based digital currency exchange and custodian Gemini which was founded by the Winklevoss brothers whose capital group is an early investor in Filecoin.

Personally I would advise people to avoid buying too many Filecoin at this stage as the price may become too volatile once mainnet is launched and we may see early investors of the 2016 ICO make an exit for profit considering it have been 4 years since and with the current global pandemic taking in a toll in financial situation, cash flow is needed.

It will be very stressful mentally if you’re seeing the price going like a rollercoaster.

Instead it will be a better approach to focus on mining Filecoin considering we will be the first batch to mine and the difficulty level is at its lowest.

This will ensure that passive income is being generated with more stability and it will be a double benefit if Filecoin price moves up.

Of course this method may seem slower than trading however you can still be trading in this approach with the Filecoin that you mine.

7. As far as early participation in Filecoin, mining seems to be the most direct way, please share with us the principle and process of Filecoin mining, what are the differences between Filecoin mining and traditional mining?

Filecoin is built on a variation of Proof-of-Space. It is also related to Proof of Stake in that instead of only tokens as stake, stake is in the form of proven storage that determines a miner’s probability of mining a block.

The factors that determine the final allocation of mining rewards for Filecoin are the following:

Available Storage

The amount of storage (TB) you contribute to the network via your storage node.

Download Speed

The download speed where the storage node resides to receive

Upload Speed

The internet upload speed where the node resides.

Mining Rig Efficiency

The efficiency of the mining rig to ensure that read and write functions of data are being transition in a high ratio of file transfer.

Searching and multi-channel data transport both require RAM.

If the RAM is too small, it might impact the mining efficiency.

Filecoin mining is different from BTC mining where the latter requires the mining rigs to have supreme calculation power yet Filecoin mining is about contributing one’s own storage space.

Bitcoin mining rigs are relatively expensive and energy (electricity) consuming.

It makes loud noises and generates lot of heat while running.

The more suitable environment to run Bitcoin mining rigs is at remote areas where electricity bill is much lower.

They are not for household usage.

The essence of Filecoin mining, however, is to share one’s own storage space.

It is a very environment friendly process with little energy consumption and heat generation and it barely makes any noise.

8. What is your expectation for Filecoin?

I would expect Filecoin to be on the Top 10 Cryptocurrency in Coinmarketcap before the end of 2020 with the fact that it had so many powerful backing from financial institute and individual.

From my other projects that I have invested aside from XRP which is in Top 4, coin took close to 2 years before it came on to Top 10 and this is a project which did not had that many financial institute backing.

Thanks to Seth for joining our interview about Filecoin. We will continue to give the most fresh information about blockchain and crypto.

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