The chip maker was overwhelmed by the massive use of graphics chips by Ethereum and Bitcoin miners in 2017. But this time it was prepared.
Nvidia’s Ethereum Bet
Graphic chipmaker Nvidia said on Thursday it would launch a new series of semiconductors available specifically for Ethereum mining, according to a report on Edge. The company achieved great success with the sector in 2017 when it claimed that it earned hundreds of millions of dollars per quarter to sell chips to cryptocurrency miners.
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Nvidia announces dedicated crypto-mining GPUs and says RTX 3060 GPU will detect the Ethereum cryptocurrency mining algorithm and limit the hash rate by 50% https://t.co/L3jEoits1T– Dmitry Buterin (@BlockGeekDima) 18 February 2021
The California firm designs graphics processing units for the gaming and professional market, as well as system chip units for the mobile computer and automotive market. This is important for crypto-miners, who use massive computing power to “mine” blocks on PoW networks like Ethereum and Bitcoin, in turn “rewards”.
Nvidia was overwhelmed by the demand for its chips in 2017 when the crypto market picked up in a big way. Prices rose rapidly beyond the budget of the average gaming and computer enthusiast – leading to criticism from various quarters.
But this time is different for Nvidia; it is now preparing for the upcoming bullrun. The new chip type is called CMP, or Cryptocurrency Mining Processor, and will go on sale in March, a Nvidia spokesman said. This is the least dedicated crypto-mining disk released by the firm.
Crypto miners drive demand for
The firm said much of the demand for chips comes from crypto-miners, a segment they will now supply. ″ CMP products – which do not make graphics – are sold by authorized partners and optimized for the best mining performance and efficiency, ”says Matt Wuebbling, Head of GeForce Marketing at Nvidia.
He added:
“RTX 3060 software drivers are designed to detect specific features of the Ethereum cryptocurrency mining algorithm and limit the hash rate, or mining efficiency, by about 50 percent.”
RTX 3060 is the latest chip released by Nvidia. But unlike previous products, this one has been modified to prevent users from using it to exploit Ethereum – a move that increases the demand for CMP while avoiding the shortage of providers for gamers.
Nvidia said the software for its upcoming GeForce RTX 3060 card will limit how efficiently it can process # Ethereum transactions by about 50%. https://t.co/CeDe02da4b #fintech #blocking #cryptocurrency pic.twitter.com/BSsxk1kyZp
– Chris Gledhill (@cgledhill) 18 February 2021
Nvidia enjoyed a record year in 2017 after picking up the crypto-mining sector. Jensen Huang, CEO, said at the time: “Cryptocurrency and blockchain are here to stay. The market demand for them is going to grow, and over time it will grow quite large.”
What happened was a three-year bear market, which caused Nvidia’s chips to accumulate dust on the shelves and an excessive supply that was a problem for distributors and retailers. The company at the time somehow got out of the waters.
However, it seems to be now prepared for the crypto question.
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