Regardless of the GPUs used to mine bitcoin intensively, Chia’s new cryptocurrency raises the prices of hard drives (HDD, SSD, NVME) due to its own processing needs, which depend on storage capacity.
Due to the rise of Chia coin farming, on Amazon India every single hard disk includes HDD, SSD & NVME stock sold out on Amazon India. As from now on we are expecting the sudden price increases in all hard drives. Meaning that normal users also need to purchase HDD on a higher price due to Chia coin farming.
Chiacoin launches this month. It is a bitcoin-like currency and requires so-called space-time proof to be mined, or instead to process it using hard drives and solid-state drives. This requires less processing than bitcoins, which positions Chiacoin as a “greener” cryptocurrency. It was developed by Bram Cohen, an American programmer who invented the BitTorrent peer-to-peer protocol. Chia Network is the company behind Chiacoin.
Bitcoins are mined using what is known as proof of work, which involves a huge number of CPU cycles and, therefore, electricity. Far less processing is required to grow Chiacoin.
Chia is based on a consensus algorithm to prove the existence of space-time and blockchain networks. It includes a so-called chia farmer or “proofreader” submitting such proof to the reviewer. Proof of this is that a certain amount of disk space or SSD is being used to store specific data.
The Chia Business whitepaper explains the original concept. It says: “Proof of Space uses the over-provisioned exabytes of disk space that already exist in today’s world.”
A Chia farmer loads cryptographic numbers onto their disk or SSD into a chunk of capacity known as a “graph.” The plot is related to blockchain blocks, which depends on the percentage of the total space that the farmer has allocated compared to the entire blockchain network. Each chart has a hash, and with the expansion of the Chia blockchain, each farmer’s system can see, using background processing, if their hashes match the next stage (or task) of the blockchain.
The VDF (Verifiable Delay Function) time check server verifies each block and assigns an XCH token to the farmer for each verified block (coin).
To find out what’s going on, check out Chia’s Green Paper and its reference documentation.
Returning to famed land, Chia farming requires disk space and SSDs, and so they want farmers to buy disk drives and solid-state drives.
A report from PC Gamer claims that a 512GB SSD can be used by a Chia farm in 40 days, and a 2TB drive can be used in 160 days. So much has been written that SSDs wear out. This encourages the use of drives instead of solid-state drives.
A report from Tom’s Hardware said growing tea boosted demand for high-capacity hard drives, and retail prices rose $100–300 in the first half of May.
For example, the Toshiba X300 12TB cost $320 in April and now costs between $498 and $506. Western Digital Gold 12 TB costs about $ 340 in March. WD is selling it now for $416 and Amazon for $440. The 14TB Golds cost $410 in March and are now priced at $527 to $630 on Amazon.
Shares in Seagate and Western Digital have grown lately. On May 12, Seagate shares were worth $84.05. They are now priced at $ 102.29, up 21.8% over six days. On May 12, Western Digital shares were worth $64.38. The current price is $74.96, which is a 16.4% increase in six days.
What will happen now? Are we in the Chiacoin bubble? Does this thing have wings? Heck, we know this might be better for the environment, but this is terrible news for anyone who needs to buy disk drives.