Hello. I noticed the price of chia has dropped significantly this year and I wonder if this means it will be easier to mine. I am guessing the change in price reflects a change in network storage, a lower price and lower storage means that there is more likelihood that a smaller farm can win xch.
Is this incorrect? What meaning is there behind a lower price per XCH?
Thanks
Completely incorrect. Check the network space.
No, not really. It means competition is increasing and that profit margins are closing
Not really incorrect, if you actually look at netspace over time, it rose rapidly and actually peaked at just over 36 EiB in September 2022. It then dropped to a low of 20 EiB in January this year, and I would think a lot of that was due to the price dropping. If a farmers farm size stays constant they will earn more as netspace drops, and less as it increases.
The increase in netspace since January is likely due to compressed plots, I also think when mining other crypto coins became less profitable people switched to Chia. If you look at the chart the netspace decline slowed around June 2022, just after the eth merge IIRC.
Now Chia compressed plots are available I think we will see another increase in rate off growth of netspace.
Thanks Ronski. For starters, I want to mention that I will now have to consider that there is storage space compression available now, a detail that you explained.
I remember once I did check storage space and I was also reading some articles from tom’s hardware, that are now old, but mentioned that people were having a very hard time winning xch even with over $100k worth of disks (about what a petabyte costs e.g. $0.10 per gigabyte x 1,000,000 gigabytes ). The reason given by tom’s hardware was because of the large corporations with substantial storage, the largest of which had over 300 petabtyes of their own storage.
I really think one day having chia will hold a much larger value than it does today. Nobody remembers how many years bit coin took to rebound. But I do. And it isn’t because I remember the years that was going on. I looked at a chart. Why don’t people realize how important it is to go to college?
Anyway, thanks for helping me with my question. I am hoping I can win some chia and hold on to it until the world finally flips into a new paradigm.
I think its irrelevant that wales have huge farms, I pool and my brother self pools, he wins pretty regular and I win pretty regular, but mine is more consistent as I’m pooling, so a regular income with a nice 0.25XCH bonus when I find a block.
What I’m saying is just because someone has a huge farm, it doesn’t mean they’ll win more per TiB of plots.
PS. I’m holding as well.
That price estimate of $.10 per GB is way off. (costs for drives spiked right after Chia launched, so maybe that’s why they stated that price if it’s an old article) If you shop around, you can get down to under $.01 per GB. Depending upon size of drives and whether you’re buying new or refurbished, you can easily get to $10 per TB or less. All of my farm is either refurbished or used. If you want a good breakdown on costs, Digital Spaceport did a good breakdown on how to do a 1PB farm for about $10k: PiB Chia Farm Template - 1000 TiB for under $10,000 - Digital Spaceport (that article doesn’t address compression 'cuz it was written prior to that)
Usually price and difficulty go hand in hand. However presently it isn’t the case, the difficulty is increasing because of plot compression, and the price is decreasing because of the high emission rate relative to total xch in circulation.
So, because people are enjoying more space for their storage they are winning more xch at the present cryptocurrency emission rate, eg from the last halving event people are getting more chia now because they have more space?
You are confusing a lot of things, cryptocurrencies do not work like you think they do. I recommend you do a bit of reading or watching youtube videos, and then our answers will hopefully become clearer to you.
Sure. I’ll come back and read this thread again someday within the foreseeable future and see if I can understand why XCH trades at a lower price when it is still in circulation.
The emission rate remains constant irregardless of the total netspace
Currently there are 4608 blocks created per day meaning the issuance of a total of 9216 XCH