The New Cryptocurrency Could Cause an HDD and SSD Shortage

In addition to the shortage of video cards, the market may soon face a shortage of HDD and SSD drives because of the new cryptocurrency called Chia, which began to gain popularity in China. Unlike traditional cryptocurrencies, it is mined on storage devices, and no video cards, which are now challenging to buy, are needed for its production.

Chia uses a proof of space and time model, promoted as a green alternative to Bitcoin, which is very energy-intensive to mine. The creator of the new cryptocurrency, Bram Cohen (inventor of BitTorrent), thus wants to use free space on storage devices.

Miners began to massively buy HDD and SSD from 4 to 18TB, which over time may affect the entire market. For example, the fourth largest memory manufacturer in China, Jiahe Jinwei, reported that their 1TB and 2TB SSD models have already been sold out. The company is now planning to ramp up production to meet the increased demand and develop a drive designed specifically for mining.

It is too early to talk about the global shortage. The likelihood of such a turn of events will increase if the popularity of Chia continues to grow. For example, now it is not even available for trading yet.