Sunday, February 5

Ethereum miners win the battle against gamers, despite Nvidia’s intention

Key facts:
  • Although the plates come with software that limits mining, miners buy them anyway.

  • A GPU with limited hashrate can perform almost 70% compared to a normal one.

Graphics card (GPU) manufacturer Nvidia does not want Ethereum miners to use their products to mine the network’s cryptocurrency, ether (ETH). Instead, the company prefers that gamers, your main customers, whoever buys and enjoys your plates.

To this end, Nvidia has placed certain limitations on mining through specific programs. But nevertheless, the strategy did not work and the miners are still interested in these cards. The increase in demand that this causes leads to the prices of the brand’s products skyrocketing.

Various models of Nvidia motherboards are available for more than $1,000. The newest of them, the RTX 3090 model, comes to be worth more than $4,000 in online stores like Amazon. This generated record profits for the company, as this media reported, but also placed it at the center of a market dispute that it is trying to resolve.


Nvidia’s fight to “scare away” the miners

In May 2021, Nvidia had announced that it would limit the mining processing power of its line of RTX 3000 graphics cards. Lite Hash Rate (LHR), these plates would become 50% less effective for activity. Thus, it went from a hashrate of 116 MH/s to just 64 MH/s.

However, as CriptoNoticias has reported, miners have found ways to get around this limitation and use the brand’s GPUs anyway. For example, the use of a watchdog or watchdog software that restarts the program every time the hash rate drops.

AMD, Nvidia’s main competitor, resorted to a different strategy. The Radeon RX 6500 XT, one of its newer models, only has 4 GB of memory, which is insufficient to mine ether. However, and despite the fact that they are priced at just USD 200, not even gamers they have been too interested in the product, since the performance of the board is low.

Ethereum mining does not suffer despite Nvidia’s LHR

According to a report from the PC Mag site, there are miners using these Nvidia boards even despite the LHR. The reason is that these cards, even with their limitations, can bring profits to whoever acquires them to mine ETH.

The profitability of boards with LHR is slightly lower than other Nvidia GPUs. Fountain: PC Mag.

For this reason, some miners have up to 20 GPUs of this type in their rigs, and point out that Nvidia’s attempts “were in vain”. While most may go for non-LHR boards if they have a choice, that doesn’t stop them from getting the limited product anyway.

It should be noted that the company had launched a model specifically dedicated to miners, the CMP, but this plan did not yield good results, as the company itself admitted.

In addition, it must be taken into account that graphics cards are not abundant today. With Nvidia and AMD as the main manufacturers globally, the industry seems to be unable to cope with the high demand for the most powerful motherboards.

Certain miners continue to buy these boards—both those with LHRs and those without—as a long-term investment, even as Ethereum begins a transition that will end cryptocurrency mining. If necessary, miners say to the aforementioned media, it will be necessary to look for other cryptocurrencies to mine. Some have already found them, and thus get another way to “dodge” Nvidia’s obstacles.