The chip maker was impressed by the massive use of its graphics chips by Ethereum and Bitcoin miners in 2017. But this time he is prepared.
Nvidia’s Ethereum Bet
Graphics chip maker Nvidia said on Thursday that it will launch a new series of semiconductors specifically for Ethereum mining, according to a report on Border. The company achieved great success with the industry in 2017, when it claimed to have made hundreds of millions of dollars a quarter by selling chips to cryptocurrency miners.
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Nvidia announces dedicated crypto mining GPUs and says the RTX 3060 GPU will detect the Ethereum cryptocurrency mining algorithm and limit the hash rate to 50% https://t.co/L3jEoits1T– Dmitry Buterin (@BlockGeekDima) February 18, 2021
The California-based company designs graphics processing units for the gaming and professional markets, as well as chip system units for the automotive and mobile computing market. They are important for crypto miners, who use great computing power to “mine” blocks on PoW networks like Ethereum and Bitcoin, in exchange for “rewards”.
Nvidia was overwhelmed by the demand for its chips in 2017, when the encryption market grew a lot. Prices have risen rapidly, in addition to the budget of most gaming and PC enthusiasts – leading to criticism from various sectors.
But this time is different for Nvidia; now he is ready for the next bull run. The new type of chip is called CMP, or Cryptocurrency Mining Processor, and will go on sale in March, an Nvidia spokesman said. It is the first dedicated mining encryption chip launched by the company.
Crypto miners generate demand
The company said that part of the demand for its chips came from crypto miners, a segment it would now serve. ″ CMP products – which do not make graphics – are sold by authorized partners and optimized for the best mining performance and efficiency, ”said Matt Wuebbling, head of marketing at GeForce at Nvidia.
He added:
“RTX 3060 software drivers are designed to detect specific attributes of the Ethereum cryptocurrency mining algorithm and to limit the hash rate, or cryptocurrency mining efficiency, to about 50 percent.”
RTX 3060 is the latest chip launched by Nvidia. But, unlike previous products, it has been modified to prevent users from using it to mine Ethereum – a move that boosts demand for CMP while preventing any shortage of suppliers for players.
Nvidia said the software on its next GeForce RTX 3060 card will limit processing efficiency #Ethereum transactions by about 50% .https: //t.co/CeDe02da4b #fintech #blockchain #cryptocurrency pic.twitter.com/BSsxk1kyZp
– Chris Gledhill (@cgledhill) February 18, 2021
Nvidia enjoyed a record year in 2017 after the crypto mining sector increased. CEO Jensen Huang said at the time, “cryptocurrency and blockchain are here to stay. The market’s need for it will grow and, over time, it will become very big ”.
What happened instead was a three-year bear market, which caused Nvidia’s chips to accumulate dust on the shelves and over-supply were a problem for distributors and retailers. The company somehow came out of those waters at the time.
It now appears to be prepared for the demand for cryptography, however.
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