Is chia farming profitable

is chia farming profitable

We saw earlier in the year that when farmers can get a high return on their investment in a short amount of time, they will rush out to buy new hardware. With the costs in Chia farming being dominated by the upfront costs of the disks rather than energy use, game theory would suggest that farmers seek out a competitive edge by using underutilized storage or second use storage that has a lower upfront cost. Over time, as the Netspace grows, this may be very apparent and may price out newly purchased hardware from being competitive. As the Netspace grows, work difficulty increases, and farming rewards go down proportionally. We are trying to incentivize farmers to use what they already have for farming and seek out used and recycled gear for plotting and farming.

Is chia farming profitable

Total cost of ownership (TCO) models are widely used in the data center world to make purchasing decisions, breaking up costs into capital expenditures (CapEx) of IT equipment and data center costs, and operational expenditures (OpEx) for recurring data centers costs, such as power and cooling. We recently published a user-friendly version of the Chia TCO model as part of the https://chiacalculator.com/roi. A TCO model is how most data center operators, including miners and farmers, make decisions about profitability.
I have developed a model for Bitcoin similar to the methodology I used for the Chia version, which is a forward-looking model to project the costs (which can be modeled accurately) and the return (which requires forecasting on future price, hashrate in Bitcoin, and Netspace in Chia).

Is chia farming profitable reddit

We can look at a poisson distribution to give you an idea of the expected range of rewards.

Here is a link to the spreadsheet if you want to download a copy and punch in your own numbers. https://docs.google.com/spreadsheets/d/1ikmDhdh16e3Oi37ldVBqoaizA7X7VRtd39W3abfNnr0/edit#gid=1730862245

Example 1:

You have a hard drive with 7.27 TiB of plots. In this instance we assume the average netspace over a 10 day window is 150 PiB. You will have an 89% chance of winning at least 1 block reward in that time frame and nearly a 20% chance of winning 4 or more blocks.

Example 2:

You have a 1.81 TiB drive on an average netspace of 200 PiB over 30 days.

(Starting Netspace of 100 PiB and growing to 300 PiB over the next 30 days)

In this case you will have a 71% chance of winning at least 1 block reward/2 XCH and a 35% chance of winning 4 or more XCH in 30 days.

Is chia crypto farming profitable

When the Chia crypto-coin (XCH) officially burst onto the scene back in April, there were gloomy forecasts of storage supplies drying up as the new coin relies on unused storage space for computation. And although certain storage components makers have reacted in interesting, albeit unwelcomed, ways so as to ward off such a situation, for the most part, HDDs and SSDs haven’t really had the same shortage effect that people experience with graphics cards. And part of the reason for that could be the low profitability that Chia has to offer according to the findings of a Backblaze study.

In its study, Backblaze has found that it could make an income of $250,000 in a week using 150 petabytes (PB) of space.


But with an assumption of a continuously growing Chia Netspace which does so exponentially, the income generated after week sixteen would be zero.

Is chia farming still profitable

ChiaProfitability is shutting down

We are sad to announce that ChiaProfitability and all its related services will be shutting down on the 1st of November at 11:59pm (CET).

We made this decision because we don’t support Chia Network Inc’s vision of the Chia ecosystem anymore and got really disappointed about how the whole Chia project was driven by business oriented strategies only. Blockchain and cryptocurrencies are an open, community focused and decentralized market. At Firx Inc, we don’t want to support an ecosystem in which trademark policies are more important than community work and collaboration amongst other concerning events.

Chia farming is not profitable

The constants for electricity cost and PUE are set to be consistent with state-of-the-art Bitcoin mining operations, which I think is much lower than what typical data centers operate at. This presents and opportunity similar to Bitcoin where farmers with access to older low cost storage and competitive electricity prices can profitably farm Chia.

In Chia, farming hardware can be safely resold if the farmer decides they no longer wish to participate in the Chia Network. This has a massive impact on the residual value of the CapEx spent on farming hardware.

If a farmer wants to participate in the network and buys new storage to do this, the efficiency breakeven for the network for electricity and OpEx is very low.

When the Chia crypto-coin (XCH) officially burst onto the scene back in April, there were gloomy forecasts of storage supplies drying up as the new coin relies on unused storage space for computation. And although certain storage components makers have reacted in interesting, albeit unwelcomed, ways so as to ward off such a situation, for the most part, HDDs and SSDs haven’t really had the same shortage effect that people experience with graphics cards. And part of the reason for that could be the low profitability that Chia has to offer according to the findings of a Backblaze study.

In its study, Backblaze has found that it could make an income of $250,000 in a week using 150 petabytes (PB) of space.
But with an assumption of a continuously growing Chia Netspace which does so exponentially, the income generated after week sixteen would be zero.

Results

Just finished CHIA synchronization, which took almost 20 hours.

It’s funny, because in the morning the capacity of CHIA pool was 270 petabytes (10 to the 15th degree) and the complexity was 20, now the capacity is 2.5 exabytes (10*18) and the complexity is 170 – so people are involved in mining the whole day, increasing the capacity for 12 hours, which of course affects the price of coins.

Well, three plots of 300 gigabytes, which were formed during the synchronization, judging by the table, will be filled with CHIA in five years, that is, the server in principle will never pay off.

If you rent a 16TiB hard drive, it will of course increase the size of the plot by 50 times, but judging by the increase – it is a pointless race, because by the time you organize a pool of 16TiB, X will become Z.

  • Earn income by selling the crops”

  • Full node – maintains an entire copy of the blockchain, propagates blocks, transactions, and proofs between peers.
    • “The delivery truck”
  • Mining Efficiency

    Mining as a metaphor is spot on – mining in Proof of Work requires a large amount of continuous resource use in electricity and time in exchange for network rewards. Proof of Work mining has also consolidated on custom-designed hardware to maintain competitiveness. For example, in Bitcoin high-power ASICs (Application Specific Integrated Circuits) that only perform the SHA256 algorithm at terahashes per second.

    This leads to purpose-built hardware for Bitcoin that is obsolescent quickly with the average lifespan of Bitcoin mining devices at only 1.29 years [2].

    With $10k of equipment Bitcoin miners consume 14x the power compared to equivalent farming equipment. Bitcoin earns more per day but requires a tremendous amount more in electricity costs compared to a similar investment in Chia.

    $10,000 spent on a single state of the art Bitcoin miner vs. 360TB of Hard Disk Drives and JBOD (just a bunch of disks) to hold and power on the drives

    Earnings updated 10/19/2021, you can use Nicehash calculator or Bitcoin TCO model and Chiacalculator.com for up to date estimates based on hashrate, Netspace, and price

    EquipmentQuantityCostPower (W)Earnings/dayPower Cost/DayAntminer S19j Pro1$10,0003050 W$39.86$4.47WD HC550 18TB20$450 x20123 W$12.16$0.2518TB JBOD1$1000100 W

    Are the hard drives used for Chia wasteful?

    The Chia Netspace is an interesting beast.

    Even with all the advancements in cryptocurrency technology in the past decade, PoW coins hold the top spot in market cap and global trust–they provide the highest level of decentralization and security. Can we have our cake and eat it too? Can Chia exceed the decentralization provided by PoW in a sustainable way? Don’t forget the Chialisp frosting on top, which provides secure smart contract capability built directly into the coins!

    Proof of Space and Time maintains Nakamoto consensus (decentralized and permissionless) while massively reducing energy consumption. We are going to explore the economics of why storage is the perfect medium for network security.

    Summary / TL:DR

    • Farming in Chia has much lower energy consumption than mining in Proof of Work, up to 500x lower annual energy consumption at current network size.

    Leave a Reply

    Your email address will not be published.