Chia crypto triggers HDD stock rally as Western Digital, Seagate surge

Struggling HDD stocks have been handed a timely boost amid speculation that upstart crypto Chia will inspire demand.

California-based hard disk (HDD) manufacturer Seagate Technology has seen its share price jump more than 20% since last Wednesday’s close.

HDD stock Western Digital has also rallied hard — up 18% over the same period.

Chia is surging much harder than the HDD stocks.

Unlike Bitcoin’s Proof-of-Work (PoW), Chia maintains consensus with so-called “Proof-of-Space and Time.”

Chia replaces Bitcoin miners (ASICs) with unused hard drive space.
Rather than expend electricity, Chia “farmers” prove trustworthiness with reserved disk space.
Some investors are hoarding HDDs in case Chia farming sustains profitability.

today’s Chia porn (NSFW) pic.twitter.com/Uvq4HrUU3J
— Matthew Graham (@mattysino) May 6, 2021

Earlier this month, a Seagate spokesperson reportedly noted staff had been forced to “adjust to market demand” in response to Chia’s launch.

Chia can be mined easily relative to Bitcoin, but reports of Chia software destroying computers in a matter of weeks are starting to surface.

Also don't clean nonstick pans with steel wool, don't clean vegetables with soap, and don't use your phone as a doorstop. These aren't arguments against steel wool, soap, or phones, they're basic guidelines about using your tools properly.
— Bram Cohen (@bramcohen) May 16, 2021

Cohen didn’t comment on the HDD stock rally but did offer some general lifehacks.

Chia founder Bram Cohen says the damage can however be mitigated by using server-grade drives, instead of basic consumer SSDs.

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[H/T: Motley Fool]