Chia cryptocurrency mining act
Tesla has suspended vehicle purchases using Bitcoin due to climate change concerns, its CEO Elon Musk said in a tweet. Tesla's announcement in March that it would accept the cryptocurrency was met with an outcry from some environmentalists and investors. But on Thursday, it backtracked on its previous comments. He also said the electric carmaker would not sell any of its Bitcoin, and intends to use it for transactions as soon as mining shifts to using more sustainable energy. Market analysts see the move as an attempt by Tesla to assuage the concerns of investors who are focused on climate change and sustainability. Elon Musk is hardly ill-informed when it comes to both technology and the environment.
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- Bitcoin value just plummeted — what you need to know
- Just two weeks after launch, storage-based cryptocurrency Chiacoin drives up disk prices
- Bram Cohen
- New Chia cryptocurrency promises to be greener than Bitcoin, but may drive up hard drive prices
- Bitcoin’s Climate Problem
- A new supply shortage is now hitting SSDs and hard drives
- New cryptocurrency Chia blamed for hard drive shortages
- Chia, Siacoin, and Filecoin, and what these digital coins mean to green crypto mining
- The ‘Chinese Mining Centralization’ Of Bitcoin And Ethereum
Bitcoin value just plummeted — what you need to know
Until recently, this was a question that mostly concerned idealists. The crypto kids who dashed into bitcoin a decade ago were so focused on fomenting an anti-establishment financial revolt that they did not usually worry too much about carbon emissions.
The type of mainstream investors who are fretting about environmental, social and governance issues today once avoided digital assets because of other kinds of filth; as a report from ChainAnalysis shows, fraud and cybertheft continues to plague the ecosystem. No longer. As gets under way, even stodgy asset managers like Fidelity are starting to use crypto to create exchange traded funds.
And, as Goldman Sachs pointed out this week in a research note, mainstream investors are increasingly including crypto in portfolios as an inflation hedge, alongside gold.
Indeed, bitcoin mining now appears to consume more electricity annually than either Finland or Belgium, according to the Cambridge Bitcoin Electricity Consumption index.
Kosovo has just banned it for this reason. Worse, most mining has historically taken place in China, which is heavily reliant on coal. Hence that tricky question for mainstream investors fretting about inflation in can you dabble in crypto without getting your hands dirty in the real world? First, the good news: in this once-anarchic corner of finance started to organise itself to go greener.
Most notably, a coalition of odd crypto entities recently joined forces with the Rocky Mountain Institute, a Colorado-based environmental lobby, to create a Crypto Climate Accord. The accord signatories have apparently agreed to cut the carbon emissions from electricity use to net zero by , partly via carbon offsets but also by switching all blockchain technology to renewable energy sources by and using energy tracking tools such as so-called green hashtags.
Last month, the CCA took a step that would have been unimaginable five years ago. It created an earnest page template on how to conduct the type of credible environmental crypto audits that might reassure a traditional pension fund. Yes, really: the green suits have arrived. First, the decision by Beijing to clamp down on the industry last year has forced many miners to relocate from China. This is making crypto less reliant on coal-fired electricity, since many of the new mining operations are choosing to embrace renewable energy sources.
Purists argue that PoS might be less secure than PoW. But it is also far less energy intensive. Yet, as Goldman says, obstacles remain. Indeed, the Sustainability Fund Monitor suggests, using data, that bitcoin now accounts for the vast majority of electricity consumption 11 times that of ethereum, for example. Sign up here with one click.
A second problem is that the industry is so murky that it remains to be seen how much transparency the CCA can really create, particularly among non-signatories. Of course, a cynic or a crypto-enthusiast might sneer that this problem is no different from that of other asset classes; gold, say, has a dirty carbon footprint too.
That is a fair point. But perhaps the key message for investors is this: yes, it might make sense to include crypto as an inflation hedge, but, no, it does not offer a free lunch.
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Just two weeks after launch, storage-based cryptocurrency Chiacoin drives up disk prices
Disclosure: I work with Flexpool. Referral links may earn me a little bit. Not the big names most people have heard of, but venues with some reach and some expectation of basic knowledge. The evidence? Also seen at TweakTown after this was originally posted. In January , I refreshed my involvement with cryptocurrency mining, after two years of Ronco-mode Ethereum mining. Set it and forget it worked pretty well, except when a power supply died.
To enjoy our content, please include The Japan Times on your ad-blocker's list of approved sites. The title of the forum was arcane even by cryptocurrency standards: Web 3. But attendees of the event in Chengdu, China, were clear about why they turned up in the middle of a government crackdown on Bitcoin mining. While plenty of miners have fled China, these cryptocurrency diehards are betting they can continue to thrive under Communist Party oversight by shifting into lesser-known tokens and decentralized storage technologies with names like Filecoin, Swarm, Silicoin and Chia. Like many of the people interviewed for this story, he asked not to use his full name given the sensitivity of the topic in China. At a pre-conference schmoozefest not far from the hotel, attendees toasted each other with Moscato Rose wine and Harbin beer, while nibbling on yam chips, platters of fruit and minicakes. Zhu Can, whose firm Smart Cloud Computing owns data centers and assembles machines, is betting on Swarm. He was optimistic the government would endorse the digital asset even as it cracks down on other areas of crypto. China has banned cryptocurrency exchanges and initial coin offerings but has not barred individuals from holding virtual currencies. Anhui province pledged earlier this month to shut down all mining projects within the next three years, following similar efforts by Inner Mongolia, Yunnan and Sichuan.
New Chia cryptocurrency promises to be greener than Bitcoin, but may drive up hard drive prices
The Chia network is powered by energy efficient blockchain with less damage to the environment. To create or "farm" Chia symbol: XCH , miners aka farmers must install Chia's software that creates cryptographic data known as "plots" to the hard drive. The blockchain broadcasts a problem for each new block, approximately every 18 seconds - with the likelihood of farmer winning the block being determined by the availability of unused computational storage capacity. Chia was created by BitTorrent inventor Bram Cohen. It was developed through a powerful, easy-to-audit and secured new intelligent transaction programming language called Chialisp.
Bitcoin’s Climate Problem
Bram Cohen is an American computer programmer , best known as the author of the peer-to-peer P2P BitTorrent protocol in , as well as the first file sharing program to use the protocol, also known as BitTorrent. He is also the co-founder of CodeCon and organizer of the San Francisco Bay Area P2P-hackers meeting, was the co-author of Codeville and creator of the Chia cryptocurrency which implements the proof of space-time consensus algorithm. He later dropped out of college to work for several dot com companies throughout the mid to late s, the last being MojoNation , an ambitious but ill-fated project he worked on with Jim McCoy. MojoNation allowed people to break up confidential files into encrypted chunks and distribute those pieces on computers also running the software. If someone wanted to download a copy of this encrypted file, they would have to download it simultaneously from many computers. This concept, Cohen thought, was perfect for a file sharing program, since programs like KaZaA take a long time to download a large file because the file is usually coming from one source or "peer".
A new supply shortage is now hitting SSDs and hard drives
New cryptocurrency Chia blamed for hard drive shortages
This means that miners are rewarded for how much unused disc space they make available, not how much energy they tear through validating transactions and adding blocks to an ever-growing blockchain - a practice that has become so intense in the case of bitcoin that rolling blackouts have been seen in hubs like Iran, prompting its government to impose an outright ban. But the new cryptocurrency is already being accused of failing to live up to its environmental promises after miners involved in generating currency were found to be burning through hard drives HDs and solid-state drives SSDs at a rate of knots, creating a spike in demand for new hardware and an inevitable shortage. But Mr Hoffman suggests that the demand being driven by Chia could ultimately end up lowering the cost of hard discs and argues that even if every single one sold in a year amounting to roughly 1 billion terabytes or 1 zettabyte of data were devoted to mining his currency, it would still use less than one per cent of the energy chewed up by the market leader, bitcoin, which has been estimated to consume consume 0.
Chia, Siacoin, and Filecoin, and what these digital coins mean to green crypto mining
From our first announcement in March, we have been building Servers for plotting and farming Chia Coins. Our facilities have been winning Chia coins nearly every day from the start of our operations. We are continuing our move of farming Chia Chia. To further reinforce our move to support and farm Chia, it can be noted that major countries are moving from BTC to Chia. This is in part due to the low power it takes to plot and farm Chia, but more importantly that Chia has built their platform specifically for the financial world and they are set for major growth.
The ‘Chinese Mining Centralization’ Of Bitcoin And Ethereum
Bottom line: Chia mining can lessen the lifespan of solid-state drives SSDs by writing more than GB in temporary data per plot. Buyers looking for deals on used hardware should be careful and ask the right questions when purchasing these used Chia plotting drives; otherwise, they could end up paying for a heavily used item with a severely reduced lifespan. Chia , the recently introduced "green" blockchain aimed at reducing energy usage and credited with a drastic increase in storage costs, is once again making storage headlines for the wrong reasons. Following a continued drop in value, the coin's miners have begun leaving the network and liquidating their hardware assets to recoup costs. Buyers of these used Chia plotting drives should be extra cautious, as they may not get what they're paying for based on how Chia utilizes the flash storage of SSDs and NVMEs. Unlike traditional proof-of-work consensus mechanisms, Chia instead relies upon a less intensive proof-of-space consensus mechanism to verify and validate transactions on the Chia blockchain. A fully prepared Chia farm uses less energy and resources than those farms mining currencies such as Ethereum and Bitcoin; however, the path to get there is not without some expenditure of energy and hardware resources.
Chris Dupres, who I should have acknowledged provided me with a key hint about Chia, posted Very detailed post on post-Proof of Work cryptocurrencies, including Chia linking here. Thanks, Chris! Brett Scott's I, Token is an excellent if lengthy explanation of why Bitcoin and other currencies lack "moneyness".