Filecoin — in simple words

Cedric Dahl
Jul 11, 2017 · 1 min read

Think of Filecoin like an internet vending machine for cloud storage. Everyone connected to the internet is a potential supplier. The only coins the vending machine accepts are Filecoins, which are reliably scarce.

The thing that’s weird about Filecoin is that it has bizarre economies of scale. Basically, anyone on the internet can contribute unused storage (Exabytes potentially).

Because there’s a market for this storage, and markets are efficient, you’ll always get the best price for storage.

As the vending machine becomes popular the scarce coins go up in value. Econ 101.

Expect protocols like these to both bring the cost of internet utilities (like cloud storage) WAY down while also capturing value at a scale never before seen.

I welcome opposing view points. I could be wrong. But if I’m right this is a very valuable thing to pay attention to.

If you want to go down the Internet Money rabbit hole: https://www.youtube.com/watch?v=rnsGL9OJVOA

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