Cloud storage providers found that even “free” chia seed cultivation cannot be profitable on a large scale
Cloud storage and data backup company Backblaze Publish A blog post today outlines its search for an answer to a relatively simple question: Does the company make sense? Growing Chia cryptocurrency Use its reserved HDD as a buffer to allow its cloud storage platform to expand quickly? Well, it turns out that the answer is no.
The company said that online Chia Seed Calculator Initially set its weekly income (before expenses) at $250,000. It will not have the same up-front cost as other farmers who want to become Chia, because it can simply use the HDD in its buffer to use 150 PB for the plot.Unfortunately, free storage space Not the only factor.
Backblaze pointed out that creating a drawing is a heavy task that requires “a multi-core processor with a fast core so that you can make multiple drawings at once (parallel drawing) and a lot of RAM.” Drawing on the drive is also difficult. The company stated that the process involved “approximately 1.8TB of read and write” to begin.
Even if Backblaze wants to buy an enterprise SSD Able to handle this pressure, The weekly expenditure of US$250,000 is based on the amount of storage dedicated to the Chia network and the value of a single Chia coin (XCH) at the time of calculation. Therefore, it tries to predict future earnings based on the expansion of the network.
Backblaze’s calculations assume that it will not have any operating costs and XCH will be stable. Even those rose-colored glasses can’t make the discovery look good.
“If Chia Netspace continues to grow at an exponential rate,” the company said, “After 16 weeks, our weekly agricultural income will actually become 0.”
Acknowledging that even for cloud storage providers, growing Chia on a large scale is not free, but this does not make the prospects look more attractive.
“In order to quickly understand the cost, we used the standard pricing of $5/TB/month as our effective’cost’ because it takes into account our sales costs, eavesdropping costs, and the additional work required for this work,” Backblaze Explained. .
“Calculated at $5/TB/month, the weekly cost of 150PB is $175,000. Assuming exponential growth, if we start farming within 7 weeks of running the analysis, our costs will exceed the total expected revenue. Assuming continued growth, the costs will be Exceeds the total income estimated at around the 28th week.”
Even those forecasts try to support the idea of growing chia seeds as much as possible. Backblaze stated that its calculation is based on XCH’s opening price of $584.60 on June 8. “Since then, it has fallen to a low of US$205.73 and then rose to US$278.59 at the time of release,” the company said.
All of this means that cloud storage providers with 150PB of storage space cannot make money by growing Chia themselves.Which makes The introduction of pooling-Chia Network describes it as “lottery insurance”-It doesn’t seem to be suitable for Chia farmers who like to cooperate, but more like a must-have for those seeking profit.
But what’s really exciting is that Backblaze will continue to provide Cloud Farm Service Its own estimates are considered unprofitable.
“It doesn’t make sense for us to grow chia seeds,” the company said, “but we like to watch people try to store them.”