Chia, the "green" alternative to Bitcoin, just doubled its valuation and could IPO soon
![_Chia farm life [funky-data/E+ via GettyImages]_](https://cdn.robinhood.com/static_content/mwphzyq69oso/en-US/assets/files/3IX7x2MOX7mInzzxFBNzYI_1_GettyImages-181899775.jpg)
![_Chia farm life [funky-data/E+ via GettyImages]_](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)
Can't sprinkle it on an acai bowl... But the name says it all: Chia promotes itself as an eco-friendly crypto coin. The digital currency platform has more than doubled its valuation, after raising a fresh $61M in funding. It's now reportedly valued at ~$500M, and could go public as soon as this year, even though Chia just started trading this month. The new cash infusion is likely not a coincidence.
The Prius to Bitcoin's Hummer?... What Chia wants investors to see. There's suddenly a lot of attention being paid to Bitcoin's enviro impact (which we wrote about in April). It started in mid-May, when Elon tweeted that Tesla will no longer accept Bitcoin payment for cars. Elon is concerned about BTC's fuel-burning ways, so Tesla will only accept/buy/sell Bitcoin when “mining transitions to more sustainable energy.” Cue: crypto prices plunged.
- Bitcoin operations require much more electricity than other cryptos, which can result in more emissions. Tesla said it's looking at other cryptos that use <1% of Bitcoin’s energy. Then again, Elon just spoke to "North American Bitcoin miners" re: sustainability.
- Chia says its operations are less energy-intensive than traditional mining. Instead of relying on special energy-sucking computers, Chia's network uses available storage space on your hard drive to "farm" coins by validating transactions on its network.
Chia may have a “but-what-about” problem... EVs are greener than gas cars, but what about the electricity needed to power them? Electricity is mostly generated by burning fossil fuels (like: gas). For Chia, it's "what about hard drives?" Some are concerned that Chia farming could burn out a drive in weeks, while drives subjected to normal usage can last over a decade. That could produce a ton of e-waste, and also lead to) a drive shortage. Solving one problem could cause others, and there's still plenty we don't know in the race to become a more energy efficient crypto.