Hosting company Hetzner has banned customers from using leased facilities for mining cryptocurrencies due to the increased load on equipment after the launch of the Chia cryptocurrency.
Large German cloud hosting provider Hetzner has banned users from mining cryptocurrencies on their servers following the recent launch of Chia. The Chia project is built on the Proof of Space and Time algorithm, which uses users’ disk space to confirm transactions. For the plotting process, when creating such a validator, a fast SSD and processor are required, however, after the process is completed, the cryptocurrency is mined without using significant client capacities. However, heavy use of SSDs will significantly shorten their lifespan.
“Yes, it’s true, we have expanded the terms of service and banned the mining of cryptocurrencies. We have received many orders for our servers with large hard drives. Large storage servers are being rented more and more often, which leads to problems with them “, – reported
yesterday the company on Twitter.
Since the launch of Chia this spring, there has been a surge in user demand for storage servers. Aside from bandwidth issues, Hetzner is also concerned that the constant use of mining drives could lead to premature failures. As per the updated service agreement:
“Cryptocurrency mining applications are banned so that we can continue to operate a high-performance and reliable network for our customers.”
We remind you that in April in Southeast Asia, a frenzied demand for fast and capacious SSDs began. In Hong Kong, prices for SSDs ranging from 4TB to 16TB have increased by $ 25- $ 75. Chinese SSD maker Jiahe Jinwei has revealed that all 1TB and 2TB NVMe drives have been sold out. The shortage of SSDs in Asia was caused by Chia miners who bought up all available SSDs in order to mine the coin. The increased demand for hard drives and SSDs of large volumes was also observed in Russia, but did not lead to the deficit and multiple price increases that continue in the video card market.

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