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Wednesday, October 20, 2021

Cryptocurrency Miners – Dead?

Cryptocurrency miners have been the bane of graphics processor card manufacturers. Miners who purchase their cards in bulk have been a source of contention for AMD and NVIDIA, resulting in retail shortages.

When they increase production, they dump those cards on the secondary market, causing major inventory problems.

Cryptocurrency Miners

NVIDIA had had enough, but they knew that just making it more difficult for miners to buy cards wouldn’t work because those miners would find workarounds and, as a result, NVIDIA would be tarnished.

They created a line of cards specifically for miners and limited mining capabilities to their standard graphics cards, making them less effective. 

When is it going to be available?

Cryptocurrency Miners

The RTX 3080 Ti has been the subject of a lot of speculation for a long time, and the graphics card is expected to be released in May.

 However, not long ago, it was thought that the GPU would be released in mid-April, but Nvidia reportedly ran into issues that caused a delay – issues that have now been resolved, and the card should be released soon.

Creativity with Crypto-Miners

Ethereum is despised.

Cryptocurrency Miners

Since it explicitly favors graphics processing units (GPUs) for crypto mining, the fast-growing crypto, currently Ethereum, has been the issue.

Oh, and if you’re unfamiliar with GPU mining, it’s the process through which digital currencies such as Bitcoin and Etherium are produced. You operate a machine that mints cryptocurrency that you can spend after performing some highly complex math. 

The effort consumes a significant amount of energy, and you must keep your hardware up to date to avoid spending more money on electricity than you receive in currency.

Embracing miners while ensuring GPU sales are covered

So what NVIDIA did, which is interesting, is building a line of cards known as CMP devices designed for crypto-mining rather than graphics. 

Cryptocurrency Miners

These cards don’t have display outputs, so they don’t produce as much heat, and they have lower peak core voltages and frequencies, which should result in higher coin yields while using less power. They’re also specifically designed for GPU mining.

Simultaneously, to eliminate the motivation for people to purchase NVIDIA gaming GPUs instead, they reduced the hash rate of their GPUs, rendering them inefficient mining solutions.

Cryptocurrency mining aims to ensure that the currency you receive is greater than the cost of mining it.

Putting It All Together

Cryptocurrency miners were purchasing GPUs in large quantities, causing spot shortages and then dumping the cards into the market, causing inventory overruns, according to NVIDIA and AMD.

This dilemma couldn’t go on indefinitely. So NVIDIA devised a clever solution: they crippled their GPUs for mining. They then offered a more effective solution for crypto-miners that avoided both the initial commodity shortage and the later excess inventory problems.

This solution appears to be better for both NVIDIA gamers and miners on paper, but it is a new solution, and we must wait to see if the market supports it.

Nonetheless, NVIDIA should be commended for coming up with a novel solution to an unquestionably problematic issue.

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