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> I'm not entirely clear what would be analogous to revenue for Filecoin, but they "mine" ~330K coins per day, which at current prices is about $21 million Th
by Taek 5y ago
> I'm not entirely clear what would be analogous to revenue for Filecoin, but they "mine" ~330K coins per day, which at current prices is about $21 million
This is actually analogous to an expense. That $21 million per day is not revenue that is flowing to the shareholders (or in this case, the Filecoin holders), but rather new shares that are being printed and distributed to the people offering storage to the network. Filecoin's annual expenses to maintain that 13 EiB are roughly $7.5 billion per year, and those expenses manifest as inflation of the total coin supply.
> Now here's where it gets crazy... based on the current average reward if Backblaze dedicated all of their storage to Filecoin mining they could (theoretically) generate about $2.5 million a day (or $900 million/year, about 13x what they bring in now).
They can't because Filecoin mining requires pairing storage with massive GPUs and servers that have 128 GB of RAM. To move all of their storage over to Filecoin mining, Backblaze would have to make a massive infrastructure investment that is otherwise completely out of the scope of what their business does (as none of their existing products leverage such hefty compute).