Filecoin and cloud computing power in the eyes of lawyers: money printing machines or money shredders?

Author: Huo Xiaolu

Filecoin, known as the most sought-after project, has finally been launched after three years and four postponements.

Countless expectant eyes, accompanied by the pipe dream of “getting rich overnight”.

Amid the craze, follow Huo Xiaolu and observe the mining machine trends and cloud computing risks behind the scenes.

Note: The picture is from the Internet

Mining machine, money printing machine or money shredder?

Some people say that every time a new concept comes out, it will first be exploited by a group of scammers, then by a group of investors, and finally it will be the turn of those who love it to stick to it .

IPFS/Filecoin is such a concept. After 2017, it has once again become the focus of the cryptocurrency circle in 2020.

How can you mine coins without mining machines? From the initial thousands of yuan per machine to tens of thousands or even hundreds of thousands of yuan, countless investors who dream of getting rich quickly have invested huge amounts of money, thinking that what they are sowing are "seeds of hope", but unexpectedly, they may just be "meat buns for beating dogs".

Two years ago, Filecoin was pushed back and the rules were unclear. Although there were constant disputes over returns, they were basically concentrated in the civil field. The most serious case was the "Snail Interstellar Server" fundraising fraud case , which is also the only official criminal case announced so far. According to media reports, Henan Lianxin Company used luxurious marketing and the name of "one machine for multiple mining" to frantically sell mining machines in just a few months, and finally ran away with money in the name of "moving to the United States". The amount involved may be as high as billions.

In fact, there is another administrative case that few people know about. Aren’t administrative cases about people suing officials? How did it get involved in the cryptocurrency industry? Here’s what happened. A certain market supervision bureau in Jiangxi received a report that a company used Filecoin mining machines to commit fraud. After investigation, the market supervision bureau determined that the company’s sales behavior constituted a pyramid scheme, so it applied to the court to freeze the bank accounts of the company and related personnel involved in the case, with a frozen amount of nearly 100 million yuan. The above-mentioned personnel were dissatisfied with the freezing decision and sued the market supervision bureau in court. Of course, they lost the case. There are also claims that the bank accounts were unfrozen on June 23.

According to media reports, there are no less than 10 billion mining machines sold in the market, with different prices. With the official launch of the Filecoin mainnet, the true and false mining machines will gradually be unveiled. Is it a "money printing machine" that makes a fortune every day, or a "money shredder" that is like scrap metal?

The "Snail Miner" is likely just the tip of the iceberg. When the curtain opens, perhaps in as little as half a year, a group of people's "dream of getting rich quickly" will come to an abrupt end, and they will embark on a longer road of rights protection.

And now, we are still partying, the carnival before the storm.

Cloud computing power, a gamble or a bubble?

The high cost and difficult maintenance of mining machines have deterred many individual investors.

Cloud computing power came into being. The so-called cloud computing power, or cloud mining, usually refers to large mining farms providing computing power leasing services. Users purchase computing power in units of T to achieve remote mining and obtain virtual currency income mined by the corresponding computing power . It is similar to "mining on behalf of others".

Compared with physical mining machines, cloud computing power does not require maintenance and is relatively cheap. It enjoys high returns from mining and has become a hot topic. With the lowering of investment thresholds, another group of investors has quickly poured in.

Low threshold, high returns? It sounds like a good deal. But don’t forget that good things that fall from the sky must be accompanied by three words: “high risk” .

Many investors, who do not understand the technology, the industry, or the risks, are fooled by the white paper and jump in. Even worse, even if they know that the white paper is false, they still cannot resist the hope of "turning the tables" and are lucky.

The so-called cloud computing power, the core is "cloud", to some extent, means "invisible and intangible" . It is necessary to think about the following three questions:

1. When purchasing computing power, do mining machines really exist?

2. What is the performance of the mining machine? Can it successfully mine FIL coins?

3. What is the production and value of FIL, and when can I get my money back?

Before the Filecoin mainnet is launched, these are all unknown, but they are potential common problems of cloud computing power .

There is no shortage of investors in the trading circle. I remember an investor who came to consult me ​​and made seven-digit transfers without considering the risks. He had the mentality of "grab it and you'll earn it". I can't help but sigh, the pie is so small, who are you?

I recall chatting with a friend in the private equity industry a few years ago, and jokingly said that if there were good projects, I would take care of them. My friend replied that if it could be reduced to the secondary market, it was basically not gold. It’s the same principle.

Projects that can make a lot of money are usually quiet . The so-called "making a fortune in silence". With the hype so intense and unprecedented, and the flood of cloud computing power, capital has already settled in to pursue profits. Can small and medium-sized investors really usher in spring?

Once the mining machine runs away, the cloud computing power will inevitably be lost.

Is it a gamble, a bubble, or even a takeover? We can only wait and see.