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Nvidia wants to stop gaming chips from being used for crypto mining

Updated: Jul 25, 2024
Published: May 19, 2021
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Tech company Nvidia plays a key role in the gaming and cryptocurrency mining industry. It creates interactive graphics for laptops, mobile devices, and gaming consoles. However, it now wants to limit the capabilities of graphic cards used for crypto mining. The move is to ensure that those dedicated to gaming are not used for cryptocurrency mining.

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Nvidia to develop less desirable graphic cards for crypto mining

Graphics card manufacturer Nvidia is planning to develop graphic cards more suited to gaming than cryptocurrency mining. The company is making the move to mitigate the serious shortages faced by video gamers. However, it also highlights the fast-growing demand for graphic cards by cryptocurrency miners.

Nvidia stated that it intends to limit the features of its gaming graphic cards, making them useless for performing the required calculations for validating transactions on the Ethereum network. A company spokesperson said, “GeForce products are made for gamers — and packed with innovations. Our RTX 30 Series is built on our second-generation RTX architecture, with dedicated RT Cores and Tensor Cores, delivering amazing visuals and performance to gamers and creators. Because NVIDIA GPUs are programmable, users regularly discover new applications for them, from weather simulation and gene sequencing to deep learning and robotics. Mining cryptocurrency is one of them.”

To ensure that GeForce GPUs continue to be used by gamers, Nvidia developed the GeForce RTX 3060 graphics card. It came with a reduced Ethereum hash rate. Additionally, the company is applying similar measures on newly manufactured GeForce RTX 3080, RTX 3070 and RTX 3060 Ti graphics cards.

Shortage of graphic card causes battle between miners and gamers

Nvidia took the drastic action because of the shortage of graphic cards in the gaming industry. The Coronavirus pandemic led to a shortage in production, while the quarantine fueled gaming demands. These trends lead to a higher demand and a lower supply for the gaming cards. Thus, this causes a problem for both miners and gamers who rely on the cards to run their systems.

For example, gamers rely on the GPUs to ensure their games are playing smoothly. Meanwhile, cryptocurrency miners rely on the cards to solve algorithmic puzzles more quickly than competitors. In both cases, the cards allow them to earn rewards.

Nvidia has tried solving the shortage problem by creating separate product lines for miners and gamers. It launched the NVIDIA CMP cryptocurrency mining processor earlier this year. The new card was designed specifically for cryptocurrency mining purposes.

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