A new cryptocurrency Chia promises to be better than Bitcoin

2021 might have been a year of devastation and misery across the globe due to the prevailing COVID-19 pandemic but it sure has been a fruitful year for the cryptocurrencies. Bitcoin, which valued only $ 18,000 in November 2020 has seen a more than threefold increase in its prices to touch its All time high at $ 64,000. Currently, it stands at $ 57,000.

Same has been the case with Ethereum which stood at around $ 730 at the start of the year while its value has multiplied almost 5 times in these 5 months. It has crossed $ 3500 mark at the time of publishing this article.

Even the meme based cryptocurrency Dogecoin has gone bullish in the market giving excellent returns to the investors.

In this golden phase of cryptocurrency, Bram Cohen has come up with a new cryptocurrency named as Chia which claims to have unique features and promises to be better than even Bitcoin. Bram Cohen is the inventor of the BitTorrent exchange system.

So how exactly does Chia claim to be better than Bitcoin?

The major point which differentiates Chia and Bitcoin is the claimed eco friendliness of the former. Bitcoin mining consumes a lot of energy. The figure sometimes also exceeds the amount of electricity consumed by an entire country. Click here to know more about Bitcoin mining.

Chia claims to be more eco friendly in this aspect.

The mining in Chia is based on a system which is known as “space-time test.” In this space-time test, the miners just need to have enough space in their hard drives at the right time for a successful mining.

It is very cost effective and doesn’t require too much energy either. However, it can go on to create a shortage of storage units as the whole system of mining is based on space. Bitcoin mining requires purchasing hardware and special graphic cards which can be expensive.

Since Chia mining depends upon having adequate space for storing data, it might create a cost increase in as well as shortage of hard drives, especially if it gets popular and people start going crazy for it. It was first launched in February this year and since then the cost of hard drives in China have increased by around 60%. Other neighboring countries are facing the same problem.

Although whether the cost of hard drives keeps increasing in China and everywhere else will totally depend on the success of Chia. If it performs well, it would mean that hard drives will get harder to access but since a lot of miners will move towards Chia mining from Bitcoin mining, the cost of graphic processors used in the latter will come down.

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