Cryptocurrency has temporarily taken over, which has attracted all consumer cards to large-scale operations. Does NVIDIA have a solution? Hmm…I won’t say that this is a solution, but a public relations campaign to win the favor of consumers. Is fighting against cryptocurrency mining always a priority for NVIDIA? We are not sure about the answer, but most likely it is not.
How does the cryptocurrency mining boom generally look like? And how does it affect NVIDIA?
Prior to the current boom, cryptocurrency mining was popular in late 2017 and early 2018, when Bitcoin peaked at $20,000. Since then, we have understood how the market looked for graphics cards during and after the boom. The most popular graphics card at the time was the NVIDIA GeForce GTX 1080 Ti with a suggested retail price of US$800. We soon saw the card price doubled and tripled due to the extremely high demand from miners.
NVIDIA watched the whole event unfolding, and was at a loss as to what the whole situation was, but to their surprise, once the value of Bitcoin dropped, the entire card market was in a mess. NVIDIA plans to launch RTX 20 series cards, but these cards are more expensive and have lower performance than the previous generation. Many people believe that 1080 Ti is the best memory card for all-rounders. Compared with other issuances, the issuance of the 20 series card is classified as a failure.
When the crypto boom is over, the mining industry wants to sell all its mining cards. A large number of second-hand 10 series cards have emerged in the second-hand market. For anyone building a system, the 10 series cards are the first choice because their manufacturer’s suggested retail price in the second-hand market is lower than the price. The proliferation of established brands has made the launch of the 20 series shrouded in more affordable options that the previous generation was pleased with.
The hash rate limiter is an attempt to win the hearts of consumers, and the CMP series seems to kill the second-hand GPU market
As mentioned above, the encryption boom a few years ago provided everyone with another benchmark for the encryption boom, but NVIDIA has also witnessed this. Their response this year was to release mining cards and restrict the mining capabilities of consumer-level cards. The CMP series and hash rate limiter through VBIOS and software are their solutions. Some people give them praise, but they are not worthy of praise. This is just a PR stunt that hides their true intentions. NVIDIA’s real intention is not to help consumers and fight the encryption craze. This is done to arrange the market in a certain way so that something similar to the RTX 20 series does not happen again. The end of the encryption boom will always lead to a large number of cheap cards sold, which overshadows NVIDIA’s new version. NVIDIA did not want the market to be saturated when it launched new products, so the CMP series was born.
If we look at hash rate limiters, they are simply ineffective and a strategy to please consumers. The hash rate limiter is simply bad. I can’t use other methods. It only targets Ethereum mining and is still profitable on many other cryptocurrencies. CryptoLeo tested the hash rate limiter on the 3060 and found that it only works on Ethereum, and the 3060 is still profitable in many cases, earning $6.5 per day. I realize that it is very difficult to develop measures to restrict all currencies, so we are happy to try. The hash rate limit only limits retail consumers who want to mine on the side, because large-scale operations will be able to break the limiter.
But, as most millennials know, if SecuROM can be hacked, then almost anything will be fine.
—Usman Pirzada (@usmanpirzada) February 18, 2021
I can overcome the hash rate limiter because it is very difficult to successfully implement it. However, I am really angry for the CMP series, because in the end, they did not get any positive gains. I can even say that this is NVIDIA’s anti-consumer behavior. The CMP series will reduce the inventory of consumer cards because they use very similar silicon, but the cards themselves can only be used for mining. Silicon wafers are not limited, but their manufacturing methods make it increasingly difficult to continue manufacturing at the same speed.
You may ask why is it so bad? It’s simple, the current mining boom will end at some point, and cards will flood the market. What happens when the CMP card is no longer useful? Gamers and consumers cannot use CMP cards for any purpose, so they can be recycled or thrown into landfills. I might add that this is also bad for the environment, but it is definitely good for NVIDIA’s bottom line. Usually, older cards are passed to the budget maker, but now the budget maker will have no such option. If the market is not satisfied with the graphics card before the release, the product it releases will be better. Every card seen in the picture will be sold on the second-hand market at a cheap price for consumers to buy. What happens when a CMP card is installed in the rack? Since consumers cannot buy them, all cards eventually become trash cans.
Even the specifications on the CMP data sheet are below average, which leads us to believe that lower boxed dies will find a way for more cards to be manufactured. The CMP series is ultimately an economic strategy that kills the resale market and promotes the purchase of new NVIDIA cards when it is launched. After the encryption boom ended, CMP cards became rubbish, and fewer and fewer second-hand cards poured into the market. This is a win-win for NVIDIA, but it is not good for the environment and consumers, but does it matter? Absolutely not, Nvidia’s bottom line and shareholders will be very satisfied with their increased returns.
The hash rate limiter and the CMP series have different responses. Some people praise it, while others think it is an economic move that is bad for consumers. In the end, it is up to people to decide whether they like NVIDIA’s decision.