Looking at the rather concerning downward spiral of Chia Coin, several cryptocurrency miners have already called quits. And now, the market is increasingly saturated with Hard Disk Drives (HDD) and Solid-Stated Drives (SSDs) used for the “Proof Stake” crypto token.
Chia Coin, a radically new concept, seems to have lost its shine. Although analysts are still confused about the long-term trend, the eco-friendly cryptocurrency has had a very tumultuous ride in the past three months.
Chia Coin downward trend causing a flood of used HDD and SSD:
Crypto miners who had invested in Chia Coin have started to sell their hardware, specifically speaking, storage media, at losses. Chia miners are increasingly switching over to other crypto opportunities because the value of XCH or Chia Coin has continued to show a downward trend for the last three months.
Cryptocurrency miners hailed digital tokens such as Chia as an eco-friendly alternative to Bitcoin and Ethereum. The cryptocurrency is portrayed to be a very lucrative and eco-friendly mining venture.
Chia coin miners are trying to unload their exhausted drives on unsuspecting buyers. https://t.co/gWKarWUz4T
— PC Gamer (@pcgamer) September 6, 2021
These types of digital tokens required less power to mine compared to traditional GPU/ASIC miners. Hence, miners claimed such coins are putting less effect on the global environment.
However, Chia Coin is brutal on the storage medium. Incidentally, a Chia farm consists of two major activities. The less intensive operation is “Farming” in which miners offer digital plots on slower storage volumes to verify transactions on the Chia network.
Investors of the cryptocurrency Chia are selling their hard drives in bulk as plunging prices urged them to accept losses and switch to other coins. On a F…Read more: https://t.co/LGOaQX5CfU
— webnow🌎 (@webnowcompany) September 1, 2021
The most intensive operation is “Plotting” which relies heavily on local computing and storage resources to prepare the data sets. The Chia network uses these for proof-of-space consensus.
While this sounds good, the Chia Coin has seen a steady decline for the past few months. Following a continued drop in value, the coin’s miners have started abandoning the network.
As miners sell up and move to other cryptocurrencies buyers should beware. The Chia coin (XCH) cryptocurrency was pretty big news when it launched in May. …Read more: https://t.co/qY9d2ExOQY
— webnow🌎 (@webnowcompany) September 6, 2021
Many miners are actively liquidating their hardware assets to recoup costs. An Admin of a Chia Coin Facebook Group with over 5000 Chia traders has reportedly seen an influx of ads where miners are selling their used hardware as new.
A standard 1 TB HDD generally lasts 10 years or more under normal usage. Some reports claim Chia Coin mining can reduce the usable lifespan of the same storage media to just 80 days.
Is this the end of the “Proof of Stake” cryptocurrency?
The rapid decline of Chia Coin is quite visible. However, such extreme swings in valuation are quite common for cryptocurrencies.
So Chia $XCH already has better fundamentals than Cardano $ADA, and can implement DEFI on its UTXO chain using layer 1, then Chia with Cardano's marketcap equals 56k per coin? Based if you ask me. pic.twitter.com/fxR2NZ18cq
— Black Hat Crypto (@blackhatcryptos) September 4, 2021
Traditional “Proof of Work” cryptocurrencies such as Bitcoin have had their valuation sway by thousands of dollars in a matter of months. Similarly, DogeCoin too witnessed a significant rise and fall, and rise again, in valuation.
— Dan Joyce (@crusoe_tp) September 2, 2021
It is, however, important to note that Chia is a Proof of Stake Cryptocurrency. Incidentally, several popular digital tokens, including Ethereum were contemplating switching over to Proof of Stake. But recent developments might delay such an important decision.
Proof of Stake is certainly less energy-intensive when compared to Proof of Work. It does not require entire nuclear power stations to run.