NVIDIA, the largest computer chip maker in the US by market cap, is taking sides in a battle of Ethereum Mines vs Video Gamers. NVIDIA said it is cutting the hash power for three graphics proccessing units (GPUs) used in both video games and mining rigs: GeForce RTX 3080, RTX 3080 and RTX 3060 Ti Graphic Cards.
Due to a combination of coronavirus-induced supply chain disruptions and quarantine-fueled gaming sprees, there is a global shortage of graphic cards. That's a problem for video game enthusiasts and cryptocurrency miners, both of whom rely on the cards to optimize their rigs.
For serious gamers, better GPUs make the gameplay smoother and better to look at. Miners, meanwhile, rely on fast GPUs to solve algorithmic puzzles quicker than competitors. When they do, they win the right to create new blocks in the chain—and receive transaction fees and newly minted ETH in return. (Owing to differences in blockchain programming, Bitcoin miners, by contrast, rely on ASICs, or "application-specific integrated circuits.")
When that change comes, hardware will be much less important for the blockchain. But for now, though, the battle continues.