The following is a guest post written by Yilin He, or Chia in China from Twitter, who is a Chinese Chia farmer and has some really fascinating thoughts about the differences in attitudes between the Western farmers and our counterparts across the world. I have left the article mostly alone, and the author definitely speaks English better than you speak Mandarin. If you would like to donate to Yilin, who is doing a lot of good work bridging the two Chia worlds, please consider a donation to his XCH receive address xch1epr3gktzqhhmjv5qymp0d0h7l6hmjd3qvuc5s0thxu36epgkszzqhurwzs.
Chia in China
Hi everyone, this is Yilin He from Chengdu, China. You may call me Jack. Everyone knows that Chengdu is a capital city in Southwest of Chia, and have a good name not only Hot Spot, Panda, Majiang but also the center of BTC mining. There are lots of hydroelectric stations around Chengdu so many BTC mining pools located here.
First time I heard about Chia is in this March from one of my friends just after mainet launch but I didn’t pay attention because there are so many “Crypto Currency Projects” on the market. There are some OTC trading price for XCH around 50-100$ but I think it’s not safe by P2P trading. Then here comes the news Chia will on the exchanges in early May include Huobi, Okex and even Binance. So I start to do some research.
The reasons I decided to follow up Chia are probably same as many people.
- BT founder Bram Cohen’s name;
- Green mining is the future;
- An upgraded BTC maybe beyond BTC;
- Chialisp is a smarter transaction programing language than Solidity.
These are also most Chinese Speculators consensus about Chia, sorry I use speculators instead of farmers of fans which I will explain later. The real burst of Chia is after May 4th when Chia start trading on Okex. Once the grapevine comes true, the market is ignited and then, a crazy show begin.
In May 18th, a headline on all newspaper say the 356 meters tall SEG Plaza Skyscraper in Shenzhen has shaken every day since Tuesday afternoon. SEG Plaza is a well known computer supermarket in China. And the rumors said the reason behind the shaken is Chia plotting. A funny explanation is because every booth is plotting thousands HDD which are turning in the same direction at the same 5700rpm so the plaza vibrated in resonance.
All HDD are sold out suddenly in one night and you must wait up to 40 days to have them plotted. At that time, 1PB farm machine could win 30 XCH per day at the price over 1000$. “Invest Chia you will have it returned in one week!” spread all over. SSD price raised up double as HDD and delivery time quickly extend to 20days. In Shanghai, plotting cost increased up to 60$/TB. Finally 1PB sells over 100,000$ and delivery in 30 days.
Every one is looking for plotting and waiting in anxious because the net space increase rapidly and winning blocks drop down at the same speed. Then, on May 24th, first warning from three bank and financial associations comes out, followed by the rumors about Chia. “It’s a scam project. It’s a Chinese team not USA company” etc. Then more and more government banning papers issued. The price of XCH follows the general crypto currency dropped down and ROI extended over 1 year, 2 years. Game over.
Now in China, few want to talk about Chia. Speculators have new hot points like Swarm Bzz, Pha, Polar SGB etc. I did more research on Chia than before. And I believe Chia could be a very successful blockchain and develop it’s own ecology system. Compare to western Chia farmers, the “famers” in China are actually speculator. Their only target is how long and how much to be super rich. They talked like experts with many terminology they don’t really understand and have blind faith to big KOL.
But, China is a big market where no one can ignore. There is a very clear divide line between the crypto speculators and people don’t know Chia yet. China government banned BTC not only for high power-consuming but also clear site for Digital RMB. BTC mining pools have to move outside country but lower consuming mining pools like ETH are separated into small parts and moved to office building or even family.
As a green currency, it’s the Chia time in China. I am planning to set up an OP chia pool. But not same as western style, I will sell family farms as a family asset allocation. Compare to traditional funds, insurance investment, ARR of Chia is over 20%, even count at the low price now. To do this, we need more education in community and call more technical teams to develop applications by Chialisp.
Editors note: This fascinates me personally, about how the Chinese speculators seem to be a lot more pragmatic about which projects they support, moving from Chia as the profitability drops, but also all being part of what is basically a get-rich-quick scheme. I think this ties in pretty well with what I have been saying about netspace recently.