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.
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.
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.
Chia founder Bram Cohen says the damage can however be mitigated by using server-grade drives, instead of basic consumer SSDs.
Prefer to listen to your news? The Protos Podcast delivers the week’s top stories every Friday.
[H/T: Motley Fool]