Nvidia Slashes Ethereum Mining Efficiency, as GPUs Become Scarce


Nvidia recently reported that it would start cutting down the efficiency of Ethereum (ETH) mining or any other cryptocurrency for that matter through the use of its new lineup of upcoming graphics processing units (GPUs).

The US-based hardware maker, via a blog post on February 19, noted that this restriction would get rolled out first on its new Geforce RTX 3060 card, scheduled for release on February 25.

The company stated that the new GPU software drivers would detect certain characteristics of the ether mining algorithm, or other cryptocurrencies, and limit its hash rate by as much as 50%.

However, Nvidia noted that the restriction would not limit the efficiency of all cryptocurrency mining activities, adding that “with the limiter only activating when processes use Dagger Hashimoto or Ethash-like algorithms.”

The company stated that it’s hopeful that the mining restriction will dissuade its users from purchasing gaming-oriented graphics cards for large Ethereum mining operations. ETH is one of the few coins that get mined via the use of graphics cards.

Reports show that GPUs have been in short supply over the past few months because of hoarding by ETH miners, manufacturing limitations, and COVID-19-induced supply chain setbacks. All these have caused the price of GPUs to surge dramatically.

Nvidia noted that “we are gamers, through and through,” adding that “we obsess about new gaming features, new architectures, new games, and tech. We designed Geforce GPUs for gamers, and gamers are clamoring for more.”

Nvidia to Create Ethereum-Oriented Processing Hardware
That said, Nvidia also mentioned that it was looking into producing GPUs specifically geared towards Ethereum miners called Cryptocurrency Mining Processor (CMP). The Nasdaq-listed company noted that CMPs would be due for release later in March.

Nvidia noted that the CMP “lacks display outputs, enabling improved airflow while mining so they can be more densely packed.” It added that CMPs have a lower peak core voltage and frequency, which would give the hardware better mining power efficiency.


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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.