Cryptocurrency mining is gaining increasing popularity in recent years. Numerous investors have earned high profits upon early participation in cryptocurrency mining. With the price of mainstream tokens such as Bitcoin, Ethereum, and Filecoin rising rapidly, the entry barrier for average users to participating in cryptocurrency mining is becoming higher. Some individual investors are turning their attention towards new crypto projects for mining incomes. Among these projects, Chia is a promising one.
Chia is the newest blockchain protocol created by Bram Cohen, the founder of BitTorrent. Chia uses a new type of consensus mechanism known as the Proofs of Space and Time (PoST) to eliminate the unfairness, energy inefficiency, and vulnerability of previous methods. PoST is a “Green” alternative to the popular Proof of Work (PoW) algorithm employed by Bitcoin. It is also a more secure and decentralized alternative to Ethereum’s Proof of Stake (PoS) algorithm. Currently, Chia is very popular among Chinese investors. Many decentralized platforms such WhaleEx and Mars Blockchain have launched Chia mining power products.
The mining model of Chia is relatively simple. Chia mining relies on free storage space rather than central processing unit performance. Theoretically, anyone with free storage space can become a Chia Token (XCH) farmer. Similar to BCH (Bitcoin Cash) in its early stage, XCH can be used for payments and transactions. Currently, there is no market price for XCH. Farmers can participate in Chia’s ‘pre-farm’ process to earn more XCHs. The future price of XCH will determine farmers’ final mining income. However, with the number of XCH farmers increasing, Chia mining might soon reach an equilibrium between mining power investments and mining outputs, as is the case with other altcoin mining projects. It is also possible that the redundant number of XCH farmers might provide excess mining power, thus lead to reduced mining output.
Chia has an innovative consensus algorithm of PoST. Its mining model is also friendly to the average users. However, there are also some drawbacks and risks in Chia mining.
At present, Chia’s token (XCH) has never been listed on any exchanges. Due to the short supply of hard drives, many farmers are turning toward buying mining machines. Mining machines are on hot sale. However, early investors need to pay an expensive price for both the mining machine itself and custodial fees. Meanwhile, whether investors can obtain the promised mining power in time is also a problem. At present, individual users purchase mining power or mining machines from one specific miner. Trading mining power or mining machines is very difficult. It is possible that users might miss other great investment opportunities because they can’t get liquid capital in time.
Since average users are buying Chia mining power from centralized mining power or mining machine vendors, users often have no option but to trust the vendors. It is possible that users might only receive partial or even no mining income after they purchase Chia mining power or mining machines from unscrupulous mining machine vendors. This has happened to Filecoin mining machine buyers before. Average users suffered major economic losses due to the non-transparency of the mining power market.
What’s more, it’s hard to estimate Chia mining income at present due to the uncertainty of XCH’s price. It is recommended that investors must fully understand all the potential risks before participating in Chia mining. It’s also possible that the mining activity might damage users’ hard disks. Currently, Chia, with its low barrier to mining, has attracted many average users. These users urgently want to seize the chance to earn high profits. To avoid unnecessary losses, they need a quality and reliable platform for mining power purchase.
DMEX is a decentralized mining power financial service platform. DMEX combines mining power NFT with innovative DeFi products. DMEX users can earn multiple incomes from a wide range of investment options including mining power NFT trading, collateral loan, and joint mining. Numerous users have earned over 10 times of profits through DMEX’s FIL mining power NFT products. With no upfront collateral requirements, users can purchase FIL mining power NFT with USDT and participate in joint mining on DMEX. The annualized return rate of DMEX’s joint mining could reach 300%.
DMEX endeavours to transform the mining power market, reduce the entry barrier to mining for the average users and enhance asset liquidity. DMEX shares the decentralization idea with Chia. To help users earn high profits from Chia mining, DMEX officially launched its newest product Chia mining power NFT on April 26. Buyers can purchase Chia mining power NFT with the DMEX platform token DMC. With fast T+1 income settlement, buyers can purchase Chia mining power NFT today and start earning XCH mining income tomorrow. Meanwhile, buyers are also free to deposit or withdraw their funds anytime they wish. Find out more about DMEX’s flexible and profitable mining power NFT today, visit dmex.finance or talk to us in our Telegram channel: https://t.me/DMEX_Chat.
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