Chia Coin offers a unique platform under the Chia network, it uses a different consensus from Bitcoin, it uses proof-of-space-and-time (PoST). That’s why the Chia network is more energy-efficient than Bitcoin.
Shortly after its launch, the Chia coin has gone up in price in just a matter of months, having hit an all-time high of $1,934.51. But the price of the Chia coin (XCH) is currently falling at around $83.72. Is Chia coin dead? Is there still a future for the Chia coin?
We will try to explore more in-depth about the Chia network, which might help to draw conclusions about the future of the Chia coin.
Contents
What is Chia Network?
Before discussing more Chia coins, let’s first get to know about the Chia network.
Chia Network is a protocol that uses layer 1 blockchain but with the development of a more efficient and energy-efficient mining process. The Chia network actually started in 2017, but the network was less popular at the time and has recently become one of the coins that are increasing in search.
The Chia Network concept is very different in using blockchain. Developers are trying to create a blockchain that is more efficient in all aspects. Including energy-saving, safer, more decentralized, and better overall.
Chia network uses its own programming language called Chialisp. The development team considers Chalips to be a safer and more transparent programming language because it is easy to audit.
Because it is different from the Bitcoin concept. Chia Network is considered able to compete with Bitcoin in the future. With a better network for the same function.
Uniquely, the Chia network uses Proof of Space and Time created by Bram Cohen. This mechanism is the reason Chia network is more environmentally friendly because it saves energy.
How does Chia coin work?
Typically, the Chia network has the same concept as the Bitcoin Network. Bitcoin is the first cryptocurrency that was the brainchild of Satoshi Nakamoto using Proof of Work consensus.
The main difference between the concept of the Chia network is that it uses an entirely new consensus called Proof of Space and Time.
With this consensus, miners can use SSDs to mine, instead of using ASIC miners which require large amounts of electrical energy. This is the reason some countries prohibit Bitcoin mining because it consumes high electricity which causes blackouts.
Miners only need to download software and will use the hard drive space to collect cryptographic stored on disk. The opposite way of working with Proof of Work, the Chia network calls it Farmer. Where when a block is broadcast on the Chia network, farmers will scan and validate transactions according to the closest challenge to the previous block.
Ideally, the wider the storage space on the hard drive, the more likely you will win to complete random challenges from the network.
Chia coin founder
Chia network inc. was discovered by Bram Cohen, in 2017 in Delaware, based in South San Francisco, California, United States. Prior to founding the Chia network, Bram Cohen was the founder of Bittorent, a peer-to-peer platform that was popular at the time.
The number of employees is 21 full-time and 15 part-time advisors. 16 employees focus on development and research. 5 employees focus on administration and company plans.
Chia network inc. got several supporting investors including Galaxy Investment Group, Slow Ventures, and Greylock Partners.
The company’s vision is to provide software intended mainly for governments, financial institutions, corporations, and large buyers and sellers of storage.
Another target is to become a Defi, Dex facilitator and build a safe and programable cash flow to support the economy. Providing open-source tools for developers to create wallets, as well as applications that can be used in general.
When does Chia coin go live?
The development of the Chia network, although it started in 2017, the network went live on March 19, 2021. This is what brought Chia coin to popularity after its publication.
Chia coin, which earned the nickname of the green bitcoin alternative. Begin to allow to exchange XCH with other cryptocurrencies on May 4, 2021. Chia coin is already available for exchange on exchanges such as Huobi or OKEx.
How Chia coin mining works
The way Chia coin mining works is to use a mechanism where miners or in Chia’s terms are called farmers.
They need to allocate a hard drive or memory on their personal computer as a storage area or data storage.
For starters, users must install the software that has been provided on the Chia.net website. Rewards will be received proportionally in accordance with the blasphemy of the hard disk. The bigger the storage space, the higher the chance of getting the reward. The reward is in the form of XCH coins.
If the installation process is complete, then wait for the result in the form of XCH, the amount of which depends on how much allocation the miner gives compared to the entire network.
Is Chia coin mining profitable?
Conceptually, Chia mining becomes more green energy compared to Bitcoin mining in terms of electrical energy needs. Because farmers in the Chia network can use their computers or laptops with additional software provided by Chia.net.
The yield capability depends on the farmer’s hard disk space. But the downside is that mining has to turn on the computer all the time. Then the SSD in use is likely to accelerate the damage to reads and writes. Because the mining process will always scan for the latest information broadcast by the network. An SSD that is always running can slow down processing data.
Mining individual Chia coins may find it difficult to compete with mining pools. And joining a mining pool is considered to be more fair and proportional to getting a return.
But where to join the pool in the Chia network? There are several options available, however, the Chia network doesn’t recommend any of them. Pool space is one for mining Chia coins. But you can read a detailed guide on how to pick a mining pool by Chia.
Then is mining Chia coin worth it? It will also be related to the price or value of XCH which is the Chia coin. The current price is $74.10. If you look at the current trend in the last month, the price of XCH tends to fall. And the current price includes the lowest point in the history of XCH price.
Why is Chia coin so expensive?
One reason behind the high price of Chia coin is that, before XCH could be traded, after its launch to the Mainnet, the Chia network needed a large amount of storage.
Referring to Tomshardware, in stating that there was an increase in the price of SSDs or HDDs after the launch of the Chia network. That implies there is an increase in SSD purchases, causing supply to be out of balance with demand which causes SSD prices to rise.
Once XCH was available on the exchange and traded. It started with a price range of $1600, which then went up to as high as $1800. Until finally the movement tends to decrease and flatten.
If you see a trend whose value has fallen below $100 to mine a Chia coin, you may be at risk of an inadequate value. Although the price of $100 it’s still not considered worth the return.
How many Chia coins are there?
At the moment the number of XCH circulating quoting from Coinmarketcap is 2,908,361.00 XCH, with a total supply of 22,582,025.
Based on the Chia whitepaper, the Chia token’s schedule is:
- Three years after the Mainnet launch, 64 XCHs will be created every 10 minutes.
- Four to six years after the Mainnet launch, 32 XCH will be created every 10 minutes.
- Seven to nine years after the Mainnet launch, 16 Chia coins will be created every 10 minutes.
- Ten to twelve years after the main net launch, 8 Chia coin will be created every 10 minutes.
- Twelve years after launch, 4 Chias will be created every 10 minutes, and an unlimited number of them will be printed to yield farmers.
Image whitepaper Chia Network
Does Chia coin have a future?
It will be a difficult question to say the future of the Chia coin. If you look at the current price, Chia coin (XCH) in early 2022 actually experienced a downtrend.
But if you look further, it’s not only the Chia coin that has fallen, Bitcoin has also suffered the same fate with a price drop to around $42k.
The relation between the decline in crypto asset prices and the economy is the central bank’s policy of starting to reduce the inflation rate by tapering off, and possibly increasing interest rates.
However, someone replied in the quora forum that the Chia coin is a good asset for the future.
Meanwhile, seeing the advantages of the Chia network which promises an energy-friendly cryptocurrency or green energy, this may in the future replace Bitcoin which requires high power.
A currency should be distributed smoothly and environmentally friendly. This is where the advantage of the Chia network that runs nodes on a laptop or personal computer.
Where to buy a Chia coin?
Chia coin (XCH) has been traded on several popular exchanges. How to buy Chia coin is, the first to find a broker providing XCH in their platform. Then you register with the broker and follow the next instructions. Deposit funds to buy XCH.
Here are some exchanges where you can buy XCH.
Huobi
If you are already registered on the Huobi exchange, you can trade XCH in the XCH/USDT or XCH/BTC pairs. With a dark-themed chart display, you can analyze prices with the help of Moving Average trading tools and Volume indicators. Choose a market order, stop limit, or limit order. Besides, you can switch to using Tradingview charts for a more complete tool.
Gate.io
For those of you who have registered at Gate.io, then you also have the right to buy XCH or trade it with short-term or long-term goals. Here using Tradingview charts with a bright background helps traders analyze prices and find the best prices. You can find XCH in crypto trading pairs for ETH and USDT.
OKEx
OKEx exchange also provides XCH trading, with several trading options, traders can trade spot, margin, contracts, and options. You can use USDT to buy XCH on the OKEx exchange.
Kucoin
Kucoin global exchange, here also provides XCH on their platform to trade with USDT. Displays Tradingview chart with dark background display assisted with Moving Average and volume trading tools. However, users can add other technical indicators to the chart.
Crypto.com
Crypto.com is a repository of cryptocurrencies, you can find XCH here. Users can make XCH purchases through the App which is available for Android and IoS. Users can install the Crypto.com app through the play store and application store.
Why Chia coin is dropping?
At the time of launch, Chia Coin was priced at $1600, but after peaking, the price gradually declined and so far has fallen to $72. This is something that describes Chia coin as living unwillingly and unwillingly.
The initial concept of Chia coin is green energy because it uses CPU and not GPU or ASIC to mine coins. But in fact, the Chia coin requires a large space on a hard drive or SSD. And because the SSD mining process works full time, it doesn’t last long. Many SSDs are damaged as a result of mining Chia coin.
And what makes the price of Chia coin fall is the reason, many are selling used SSD to mine Chia coin by calling it a new SSD. But the fact is that SSDs are repackaged. So many buyers are deceived, where they get a shorter shelf life than they should.
Chia coin price prediction
CoinCodex considers that XCH is not the right time to buy Chia coin, because the bearish sentiment is still high. Further his forecast for XCH is advancing to $75.90 by the end of January.
UptoBrain is different from CoinCodex’s forecast, it predicts the price of XCH from year to year will actually increase, 2022 is expected to reach $262.05. The five-year forecast for 2026 is expected to return at $1,253.64.
Technewsleader made a similar forecast with Uptobrain, XCH is expected to rise significantly from year to year next. 2022 is expected to XCH up to $131.22. The long-term forecast in 2026 is expected to reach $590.61.
Pricepredition forecasts the price of XTH on increasing in value from year to year. In 2026, the XCH price is predicted to average $525.62, for the long-term forecast in 2031 it will reach the level of $3,179.15
Wallet Investor predicts XCH is a bad investment and predicts the price of XCH to fall by as much as $3. in the next year.
Final Thought
Chia coin’s recent performance has been very bad, it seems that the development team must innovate to support Chia coin again in a competitive future. Like a sprinter, moving fast at the beginning, but very slowly towards the finish line, while his competitors both want to be winners.
Note, this article is for personal information and views only and does not constitute investment advice. Each investor is responsible for their investment.
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