The storage-based cryptocurrency Chia promised to be green and a promising solution for the future by utilizing storage, which could generate higher returns due to its low electricity consumption. However, this led to a surge in demand and prices for hard drives and SSDs. Its high power consumption meant that an SSD only lasted 80 days mining Chia , resulting in minimal profitability.
Storage provider Backblaze has published their own assessment of whether they could make money mining Chia. According to their reports, no, and they say it is difficult to get a profit from Chia.
Chia is not profitable at all as expected
Backblaze initially decided to go cloud mining as a way to provide a service to its customer base, and shortly thereafter they turned their attention to seeing if a storage provider like him could make money from Chia using their infrastructure to mine. Backblaze had two problems, and they used hard drives, which makes it good for mining but bad for plotting fields. The cost of buying enough SSDs to keep Chía's mining going was a significant expense according to the company.
Despite using 150 PB (150 GB) of your own storage buffer, this is not enough capacity to make money from Chia in the long run. They expected Chia's value to stay constant, earning $ 000 in her first week.
Based on the rate at which Chia's network is growing, despite starting with hard drives worth 150 PB, it is not enough to keep up with the rapid expansion of the market. Each week's earnings were roughly 75 percent from the previous week. This produces a curve with a mining income falling to almost zero long before 20 weeks, and almost zero gains at 16 weeks, and at 28 weeks they would have net losses. It was in the first three months when they earned the most, which explains that the miners who made the most profitability retired after a few months because they saw that Chia was losing profitability due to her costs and low demand.
Source: Extremetech
