How Much Will A Chia Coin Cost?

Chia Network is restructuring the cryptocurrency area to consider a more effective and green mining alternative. The price of Chia has seen an exponential rise, as the network position as a green alternative to Bitcoin has taken shape. According to CoinMarketCap, XCH peaked at 1,685 on May 15th, 2021.

From green to greener 

The monster revenue upswing for had drive sales is directly related to the crypto space’s demand for a greener, more environmentally friendly consensus model. In the past month, Bitcoin has been shunned due to its environmental impact, as Elon Musk announced it would no longer accept BTC payments on the Tesla website.

A Context research analysis highlighted HDD sales have increased by 240%, with most of the purchases accounting for enterprise-grade 1TB hard drive. Additionally, 250,000 consumer-grade hard drives have been sold, which amounts to a 167% increase. The Guardian further reiterated the growing demand for SSD and HDD mining by pointing towards a shortage that occurred, mainly in China.

Although most online data shows Chia inclines towards a steady price increase, a few determinants indicate it might be in for a considerable incline in the foreseeable future. DigitalCoins expects XCH to cross the $5,000 markup in the next six years. Factors such as their upcoming IPO, scarcity, environmental friendly consensus model, growing demand for crypto services, and previous price activity are bullish determinants for Chia. 

The Bitcoin alternative for the future

Chia Network was developed in 2017 by BitTorrent creator Brahan Cohen. His previous disruptive application has since been sold to the Tron Foundation for $140 million. Its peer-to-peer application was one of the first disruptive applications of the digital age, which empower users to share information without the approval of a middle man.

Unlike traditional crowdfunding methods in the crypto space, Chia Network is rumored to undergo an IPO. Launched on May 3rd, 2021, Chia successfully raised $61 million in a series of funding rounds. Additionally, notable investors such as Andreessen Horowitz or Galaxy Investment Group have funded the project, which according to Richmond Global Ventures, managing partner “chia coin is secure, complies with regulations and can be audited.”

Chia’s plan to go public has been confirmed by Gene Hoffman, president, and COO, of Chia. In a Fortune interview, he announced the company’s public offering is set to be achieved this year. Additionally, after the series funding, the company has been valued at over $500 million, and the IPO will “allow customers to use the currency to hedge public market volatility.” Furthermore, Bloomberg emphasized that CHIA is appealing to investors because it is secure, it complies with regulations and can be audited.”

Different but effective

The anecdote of green Bitcoin has generated discussion among institutional investors. Proof-of-work consensus is no longer the preferred blockchain security, and coins still underpinned by the mechanics face some scrutiny. Proof of Stake, Proof of history, or Proof of space and time have similar affordance while consuming less energy. The latter has been implemented on the Chia Network, thus promoting the Green Bitcoin narrative.

Chia uses a fraction of the energy used by Bitcoin or Ethereum. Its novel consensus mechanism caches use “plots” on consumer-grade hard drives such as SSD or HDD to farm XCH. In March, Chia allowed users to “farm” XCH on its main net. Its sustainability adds another dynamic to Chia as it creates a lower entry barrier, permitting users to mine Chia using their computers in their ideal state. Furthermore, reports have highlighted that users can farm Chia by integrating with Amazon AWS, which shows its inclination towards cryptocurrencies and blockchain. 

As more institutional investors are investing in cryptocurrencies, even with PayPal or Microstrategy offering crypto assets, big tech companies seek to accommodate a growing demand for crypto. A 2019 report indicates 8 out of the ten highest publicly traded companies have taken steps to integrate blockchain to some extent.

Apple, who in 2019 announced through its CEO that it’s not pursuing anything crypto, has recently opened a position to look into alternative payment methods. In their job description, Apple emphasizes a requirement to understand “cryptocurrencies” among others payment methods to add value to their Wallet App. Similarly, Amazon has openly disclosed that it is pursuing developments into the DeFi area in its job posting. 

As cryptocurrency becomes normalized and demand grows for cryptocurrencies, according to Metcalfe’s Law, linear growth in usage could amplify the network’s value. To that extent, as usability and demand increase, Chia can provide sustainable alternatives for companies to integrate their solutions through their blockchain.

What Will Happen To The Price?

Chia offers multiple incentives why it could overshadow some of the top market cap cryptocurrencies. We already saw the market capitalization of Doge Coin at $91 billion, which doesn’t hold any technological value, except for the fact that Elon Musk promoted it as a meme. So as the entire market continues to expand, $215 billion is not such a far-reaching number. Additionally, Chia has a total supply of only 21.5 million, meaning reaching $10.000 for XCH is attainable.

While concerns have risen due to the high volatility of Chia in the initial stages, it is a regular occurrence for every new coin as XCH’s were exchanged with a low amount of volume. Additionally, the price of XCH held well after Bitcoin’s sudden drop in May. The coin launched at $1,595.04 and traded between $745.79-$1,934.51 and is currently trading around the $400 mark. However, the volume is triple the amount it was when XCH was listed. 

To that end, the price of one XCH will be directly influenced by the direction of the entire market. However, as Chia Network will become more appealing to investors to its audibility and other factors such as scalability and use of access, the price of one XCH can easily position itself favorably in comparison to Bitcoin.

How to join?

Chia Network requires everyone to use their SSD or HDD space and set up plots to in order to win a block. Farming XCH is a simplistic process, and to start mining you just need a SSD or HDD hard drive. You can join our pool and start earning everyday. Also check out this blog post about how one of our developers earned 2 Chia Coins with only 4 TB PS4 hard drive.

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