Chia Cryptocurrency Pumps Onerous Drive Producers’ Shares


  • Shares in arduous drive producers have seen an uptick following the launch of “proof of house” cryptocurrency Chia.
  • The cryptocurrency is “farmed” utilizing storage capability, with its launch reportedly inflicting shortages of arduous drives.

Novel “proof-of-space” cryptocurrency Chia sparked a scarcity of arduous drives throughout Southeast Asia within the run-up to its launch final month. It is proved to be a boon for arduous drive producers, which at the moment are seeing their inventory costs spike amid the demand for his or her {hardware}.

Shares in arduous drive producers Western Digital and Seagate have elevated since Chia launched earlier this month. Seagate shares at the moment are buying and selling at $98.47, up from $88.48 at the beginning of Could, a rise of 11%. Western Digital shares have acquired a extra modest bump, up from $70.10 on Could 3 to $71.56; a rise of two.08%.

Over the identical timeframe, the worth of Chia’s XCH cryptocurrency has elevated from round $700 to highs of over $1,600, in keeping with CoinGecko—although the present crypto market crash has seen it droop to round $1,100.

Tesla’s current determination to tug Bitcoin as a fee possibility over environmental considerations has shone a highlight on “eco-friendly” cryptocurrencies like Chia, which do not use Bitcoin’s energy-hungry proof-of-work system. 

That is served to push costs up—and additional elevated demand for the {hardware} required to mine them.

How is Chia mined?

Not like Bitcoin’s proof-of-work consensus mechanism, Chia’s XCH cryptocurrency is mined utilizing storage capability. 

As a substitute of utilizing processing energy to mine, Chia “farmers” allocate 100 GB plots on their arduous drives, that are full of hashes. When a brand new block is added to the Chia blockchain, its hash is in comparison with the hashes on farmers’ drives; the person with the closest hash writes the block and receives the block reward.

Which means the extra plots a farmer has, the better the possibility that their plot will include an identical hash—and that they will obtain a reward.

As a result of smaller-capacity SSD drives put on out rapidly, Chia farmers have been snapping up high-capacity enterprise-grade drives, inflicting shortages and spiraling costs for the {hardware}. 

Chia is not the primary cryptocurrency to spark PC {hardware} shortages, both. Earlier this week, graphics card producer Nvidia introduced that it might throttle hash energy on its GeForce GPUs in a bid to make them “much less fascinating” for Ethereum miners who’ve been snapping up the playing cards.

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