NVIDIA (NASDAQ:NVDA) recently announced it would make its new RTX 3060 gaming GPU “less desirable” to cryptocurrency miners by cutting its hash rate — which gauges its mining efficiency — in half. NVIDIA will implement the change via the GPU’s software drivers, which will detect and throttle the mining algorithm for Ethereum (CRYPTO:ETH) and other cryptocurrencies.
Ethereum is one of the few cryptocurrencies that can still be easily mined for a profit with mainstream gaming GPUs. Many other cryptocurrencies, including Bitcoin (CRYPTO:BTC), are now tough to mine profitably without a high-end ASIC (application-specific integrated circuit) miner.
It might seem odd for NVIDIA to discourage miners from buying its GPUs, but this disciplined approach makes sense if you recall what happened to the chipmaker back in 2017 and 2018.
What happened to NVIDIA last time?
Prices of cryptocurrencies soared throughout 2017, and a flood of new ICOs (initial coin offerings) hit the market. Many of those coins could be mined with NVIDIA and AMD‘s (NASDAQ:AMD) gaming GPUs.
Those speculative miners bought dozens of cards at a time, which drove up market