Chia is Dead

Summary

In this video script, Brian Freeman discusses his decision to shut down his 40 terabyte Chia farm due to unprofitability amid low Chia coin prices, which led to higher electricity costs than rewards. He shares his thoughts on Chia's technology and the upcoming plot filter, which may impact many farms. Freeman also expresses his interest in Mad Max's MMX project and the potential it holds. The conversation touches on the challenges Chia Network faces, including profitability and the company's readiness for an IPO, highlighting the complex dynamics of the cryptocurrency farming industry.

Takeaways

• 😔 Brian Freeman has not released a Chia video for several months and has shut down his Chia farm due to concerns over profitability.
• 🌿 He has saved a significant amount of electricity by turning off his 40 terabytes farm, highlighting the environmental impact of such operations.
• 🗨 Brian and the interviewer discuss the current state of Chia's value, with the price of XCH (Chia's cryptocurrency) being a critical factor in the decision to continue farming.
• 💡 The price of XCH has been volatile, affecting the profitability of farming and leading Brian to turn off his farm when the burn of electricity exceeded the rewards.
• 💰 Brian's electricity rate is 21 cents per kilowatt hour, which is relatively low compared to other regions, but still a significant cost factor for farming.
• 🔄 Brian had previously used solar energy to offset some of his farming costs, but it was not enough to cover the expenses when the price of XCH dropped.
• 🛑 The upcoming plot filter change in Chia is expected to cause a significant drop in the number of active farms due to increased energy costs and reduced rewards.
• 🔄 Mad Max's MMX project is in testnet phase and may offer an alternative for farmers looking for new opportunities, but it's still uncertain.
• 🏁 Chia Network's IPO readiness is mentioned, but there is skepticism about the company's profitability and the potential value of investing in their stock.
• 🤔 There is a general sense of uncertainty and a need for more transparency from Chia Network regarding their future plans and the technology's potential.
• 🔄 The conversation reflects a broader concern about the future of Chia farming and the cryptocurrency market, with a focus on the need for profitability and sustainable practices.

Q & A

How long has it been since Brian last released a Chia video?

It has been around three to four months since Brian last released a Chia video.

Why did Brian decide to shut down his Chia farm?

Brian decided to shut down his Chia farm due to the low price of XCH, which made it unprofitable to cover the high electricity costs.

What was the impact of shutting down the farm on Brian's electricity usage?

Shutting down the farm had a significant impact on Brian's electricity usage, saving a considerable amount of energy as shown in his comparison of electricity usage with and without the farm running.

What is the current price of XCH according to the conversation?

The current price of XCH mentioned in the conversation is $283, but it has previously gone as low as $26.99.

What is Brian's electricity rate in Southern California?

Brian's electricity rate in Southern California is 21 cents per kilowatt-hour.

What was Brian's final stage in plot formatting when he shut down his farm?

Brian was using the noSSV format with about 40 heavy bytes of effective space and had six harvesters going on with 409s, and six petabytes on Dr. Plotter.

What is the significance of the plot filter update happening in Chia?

The plot filter update is significant because it will cause a drop in the value of overly compressed plots, potentially causing some farms to become unprofitable and fall off the network.

What is the current status of MMX (Mad Max coin) in the conversation?

MMX is currently in testnet phase 11, with an upcoming testnet 12 that will be incentivized, allowing participants to earn MMX coins.

What are the challenges for farmers with the new plot formats in Chia?

The new plot formats in Chia require powerful GPUs like the 4090 for decompression, which is costly and not accessible for many farmers, potentially limiting the market for these technologies.

What is Brian's view on the future of Chia Network's IPO?

Brian admits to being ignorant about IPO processes but mentions that Chia Network has stated they are IPO ready, although the exact timeline and implications are unclear to him.

What was the reason for the layoffs at Chia Network according to the conversation?

The layoffs at Chia Network were due to financial constraints, as the company needed to keep the lights on and maintain employment.

What is Brian's current involvement with Chia Network?

Brian has distanced himself from Chia Network, but he still respects certain members and is interested in observing the developments within the company.