Nvidia to Lower Crypto Mining Hashrates on GPUs to Address Current Mining Frenzy

In an effort to deal with the continued silicon provide scarcity and bloated GPU costs, {hardware} producer Nvidia is ready to scale back the hashrates on its newest GeForce graphics playing cards to disincentivize miners. 

In an announcement yesterday, the California-based firm stated that its newest graphics playing cards, that are set to start transport in late May, will characteristic far decrease hash charges. 

Nvidia’s video playing cards can be utilized to mine cryptocurrency, having greater than sufficient hash energy to be a doubtlessly profitable enterprise.

The reemergence of the crypto markets and Ethereum this yr led many to buy these devoted gaming {hardware} solely for mining, which drove up {hardware} costs and created mass shortages — making the merchandise almost unattainable to attain for its meant customers. 

Nvidia’s Past Attempts to Address Crypto Mining

This will not be the primary time Nvidia has tried to cease cryptocurrency miners. When the chipmaker launched its RTX 3060 graphics playing cards again in April, they deliberately restricted the cardboard’s capability for mining. According to benchmarks carried out by the Verge, the weakened GPUs might solely output roughly half of the hash fee as earlier than. 

However, the mining limitation was discovered to be software-based, moderately than hardware-based. Nvidia accidentally released a new driver update that unlocked the 3060’s full hashrate later that month. This mistake, coupled with Ethereum rallying to document highs, led to a good larger GPU demand from miners. 

Now, Nvidia is taking additional steps to be certain that its playing cards won’t be as worthwhile for miners. Its family 30 sequence, together with the 3060, 3070, and 3080, will all be manufactured with lowered hash fee capabilities. They can be labeled with “Lite Hash Rate” or “LHR”.

Ethereum fuel costs (GAS/ETH) on Tradingview.com

Despite this current blow, Ethereum mining stays as worthwhile as ever. The current volatility within the crypto markets despatched Ether gas prices to a sky-high 178 gwei, or roughly $9 per transaction. According to WhatToMine, Ethereum stays the one most worthwhile cryptocurrency by a protracted mile.

Will Nvidia’s current actions bear any fruit? That stays to be seen. Regardless, with Ethereum set to obtain its EIP-1559 replace by the top of this yr, mining profitability will doubtless plummet in due time.

Featured picture from UnSplash 

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