Although the cryptocurrency market is teeming with companies like Bitcoin, Ethereum, Pi, Litecoin, and even Akon’s AKoin, their meteoric rise in values has inspired some new entrants. Chia is one of the last cryptocurrencies on the market and its USP is that it is ecological. However, if this cryptocurrency becomes popular in the market, it can potentially cause a global shortage of SSDs and hard drives. Here’s why.
As we know, cryptocurrencies like Bitcoin, Ethereum, Litecoin can be mined using high-powered GPUs. This has caused a lot of GPU supply hiccups over the years as miners hoard high-end GPU units to run crypto farms. As a result, at one point, Nividia had to tell retailers to sell GPUs only to gamers and not to cryptocurrency miners.
How Chia Can Affect SSD Supply
Now, Chia is a ecological cryptocurrency created by Bram Cohen, the inventor of BitTorrent. Decided to allow users take advantage of the free space on your storage units) SSDn or HDD) to extract Chia. As a result, the mining system requires much less power than usual GPU-backed cryptocurrency mining rigs. However, if such a cryptocurrency flourishes in the market, the SSD and HDD market could suffer the same fate as the GPU market.
The effect is already evident in Hong Kong, as the country has seen a massive spike in 4TB and 8TB hard drive sales recently. In addition, the high demand for SSDs and hard drives in the Hong Kong markets could also lead to an increase in component prices. According to reports, if high demand persists, SSD and hard drive prices could rise by $ 200 HKD (~ Rs 1,920) to $ 600 (~ Rs 5,755) HKD.
Now, fortunately, the negative impact is unlikely to affect consumer models of SSDs and hard drives, as the current drives that are in demand are high-endurance business models. This is because the Chia cryptocurrency powers drives with continuous read and write, and consumer models would be unable to deliver constant power.
According to reports, several important SSD and HDD manufacturers plan to implement restrictions to prevent hoarders from buying storage units in bulk. Furthermore, one of the leading storage drive manufacturers in China, Jiahe Jinwei, aims to launch a dedicated SSD for cryptocurrency mining on the market soon.
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