Chia has recently gained attention in the crowded cryptocurrency space as a “green” alternative to Bitcoin. Ever since SpaceX and Tesla’s billionaire CEO Elon Musk tweeted last month that cryptocurrencies like Bitcoin are driving the consumption of fossil fuels. He withdrew Tesla’s decision to accept Bitcoin as payment for Tesla cars, which prompted many investors to look for a relatively “green ” digital currency.
Zhengda miners do not use the processing power of a computer to solve complex problems such as Bitcoin mining, but require more storage space than processing power. However, this brings a whole new problem: a shortage of storage drives in some Asian markets.
According to a recent report, Vietnam’s large-capacity hard drives have actually been out of stock because Chia Tai miners have gone crazy. It is said that people who need a hard drive of 6TB or more will buy a smaller hard drive and then merge them to get the job done.
Chia is built on an encryption technology called “Proof of Space and Time”, which relies more on unused hard drive space than processing power. The more unused storage space on the hard drive, the more Chia can be mined. And because it does not require the processing power of high-end graphics cards like Bitcoin or Ethereum miners, Chia is said to be more energy efficient than Bitcoin.
However, Chia’s demand is encouraging miners to reserve as much storage space as possible, which has caused large-capacity SSDs to be out of stock in multiple markets. This also pushed up their prices.
Recently, hard drive manufacturer Galax warned users-without naming Chia-that mining cryptocurrency that requires excessive capacity and speed on storage devices will invalidate their SSD warranty. The growing demand for hard disk drives may burden their supply and ultimately push up their prices.
Jason Feist of Seagate, the hard drive manufacturer, told New Scientist that the company is experiencing strong orders and employees are trying to “adapt to market demand.”
Even if Chia does less damage to the environment than its competitors, Bitcoin miners will not just switch to mining new currencies. On the contrary, Chia may become another currency to be mined. Therefore, in terms of the benefits of Chia’s low energy consumption, they are still controversial.
This new demand for cryptocurrencies in China came about when China introduced stricter regulations banning digital currencies. Soon after China cracked down on cryptocurrency trading and Musk’s tweets about the high power consumption of cryptocurrency mining, the digital currency market plummeted last month, with Bitcoin the biggest loser. However, despite the large fluctuations in the price of Bitcoin and the price of Ethereum and other digital currencies, as people’s interest in “green” alternatives such as Chia continues to grow, the demand for cryptocurrencies continues to grow.