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Nvidia cripples cryptocurrency mining on RTX 3080 and 3070 cards (bleepingcomputer.com)
629 points by wglb on May 18, 2021 | hide | past | favorite | 791 comments



This won't really do anything for availability or reducing scalper pricing. Miners are a sizeable proportion of sales but far from the majority. Gamers will be able to buy more of these GPUs but less of the non-LHR or AMD GPU's. GPU prices won't actually change.

The real reason Nvidia is doing this is that when mining profitability inevitably drops, either because of a crypto price crash or Ethereum moving to Proof of Stake, the miners will flood the used market and ruin Nvidia's profits for a few quarters. Nvidia is trying to get miners to buy mining-only cards, because those can't be sold to gamers down the line. They'd rather mining cards become e-waste in a few years than get resold.

People think Nvidia is doing this to try to help them get better prices now, but really Nvidia is trying to extract more money from gamers in the long term.


> The real reason Nvidia is doing this is that when mining profitability inevitably drops, either because of a crypto price crash or Ethereum moving to Proof of Stake, the miners will flood the used market and ruin Nvidia's profits for a few quarters. Nvidia is trying to get miners to buy mining-only cards, because those can't be sold to gamers down the line. They'd rather mining cards become e-waste in a few years than get resold.

Great commentary on the unsustainability of it all. Nvidia has no incentive to make sure the GPU market operates in a sustainable way by supporting a secondary market. Thus, they have every incentive to cut the legs out from under resellers. It would also be anywhere from hard to nearly impossible to give them an incentive to allow the secondary market to operate in such a way as to increase the sustainability of their product.

Edit: Aren't we a bit touchy today? (Turn showdead on and look a little down thread.)


> ”Nvidia has no incentive to make sure the GPU market operates in a sustainable way by supporting a secondary market.”

They do in the sense that buyers often consider future resale values when making primary purchase decisions. It’s much easier to justify purchasing a $2500 “enthusiast” graphics card if you’re confident you can get a decent chunk of that back when you sell it in 6-12 months.

Similarly, car makers are incentivised to try to ensure their vehicles have decent resale value. Expected future residuals affect financing and purchase decisions today.


In my experience base level items have much better resale value then more expensive items. It's true for notebooks, graphic cards and cars too. For example my iPhone 11 Pro has fallen to half of the price in one year, but entry level iPhone 11 probably has still 70% of its value. Same for Macbook Air, entry level with 8GB and 256 SSD will hold value better then maxed out one. Same with cars, extra premium equipment has basically no value for people that are buying used cars. So doubt that premium graphic cards are exception. Their value falls sharply over time, so not sure people buying them are considering resale value as argument to buy them.


The entry level iPhone 11 and Macbook Air are still premium products. You're not reselling your €250 unbranded Walmart laptop for anything more than scrap.


Yep, it's premium to the point that's search function friendly. Apple machines will hold their value very well but it'll be weighted in favour of the basic version of each model.

I think when you get to PC parts it becomes quite a bit trickier as everyone who is willing to buy used PC parts is way more knowledgable on exactly what they're looking for. A lot of things do hold their value pretty well. On the other side of things, you're taking such a risk selling computer parts on ebay (gotta be a lot of people frying components after buying them and not even realising it's their fault) that I can see why people couldn't be bothered taking the risk of reselling when they can just gift away the parts.


Sold used motherboard, it came back as e-waste


Neither was Walmart, to be fair.


>Same with cars, extra premium equipment has basically no value for people that are buying used cars.

It mostly doesn't impact price as is, but the top equipped car will get much more traffic from potential buyers and therefore can get away with setting the price a bit higher than the current market.


> car makers are incentivised to try to ensure their vehicles have decent resale value

Is this actually true or merely a theoretical thought? Because it would seem that car makers are incentivised to ensure their vehicles annihilate a couple days after their warranty expires and/or after a couple of miles after their guaranteed mileage is driven, and comparing e.g. reputation of second-hand cars manufactured in 80es/90es/2000s/10s seems to support it.


One of the tactics Nissan ran into big trouble with was their extreme reliance on fleet sales. Fleet sales juiced the profits but killed the used market, thus pushing Nissan's cars down market thanks to reduced resale value. This was an active criticism by investors and journalists during the Nissan down turn.

Meanwhile Toyota is able to charge a meaningful premium because their cars retain value. So I do think it is safe to conclude in the case of cars the effect is real.


You came sooooo close to hitting the nail on the head. The first owners have a huge effect on a resale value of a vehicle.

Who buys Toyotas?

Why are those people's cars more valuable on the used market than corporate fleet's used cars?

Now see if your model explains the used value of a Dodge Journey, oilfield pickup and whatever car grandma owned.

Nissan spend the '00s selling to owners who's used cars are not held in high regard and this affected consumer perceptions of them. Toyota spent the 90s and '00s (and still is) selling to upscale people who treated their cars nicely and it affected consumer perception of them.


I'm not so sure. I bought my car mostly to minimize total-cost-of-ownership. I assume I'll resell my car when the TCO of maintenance exceeds the TCO of a new car.

I know a lot of other folks who do something similar to that too.

TCO includes my time, so if I need to take a car to the shop, or miss meetings because things break down, that raises TCO by that opportunity cost. Selling a car is a hassle, and by the time I'm ready to give it up, it's not worth too much (and the buyers will probably be poor, since TCO exceeds a new car) so I don't feel the need to maximize resale value.

While this is an overly rationalist way of phrasing things, but most people I know take a similarly pragmatic approach. Teachers. (Real, not software) engineers. Etc.

I don't buy used cars, since some people sell to upgrade, and some sell because there's some issue. The headache adds a lot to the TCO.


There's also material differences, there's a reason the Nissan CEO from that era is currently a fugitive and on trial for financial misconduct.

And not by some technicality either, he literally hired a paramilitary group to disguise themselves as musicians and smuggle him out of Japan while on bail.

Since 2001 Nissan has used their defective CVT transmission in the vast majority of their lineup from the compact Versa to the Pathfinder SUV (aside from the sports cars and pickup trucks).

The average time to failure depends slightly on the model, but it's often around 60-70k miles.

The cost to replace it is typically most if not more than the value of a typical Nissan.

Because they were selling defective cars, their buyers dried up, so they had to resort to buyers with sub-prime credit. At this point it's joked the Nissan Altima is the official car of bad credit or bad neighbourhoods.

While the poor upkeep by the sub-prime owners certainly doesn't help, the poor resale value is largely due to everyone knowing they are ticking time bombs.

I've shopped for many different used 10-15 year old cars, and through my research have found the used market is extremely accurate in pricing in expected upkeep or failures, even among different variants of the same model from the same brand.

When I wanted an W211 E-class Mercedes (2003-2009), I researched the common failures and the cost to repair. I found the whole range was actually priced pretty similarly once you factored that in.

There were major defects in the 2003-2004 models which would cost around $2500 to fix. The 2005+ models were worth about $2500 more than a 2004 (despite only being worth $5000 and $7500)

The E500 had an air suspension failure issue which would be around $2000 to remedy, the same model year E320 with normal suspension was worth $2000 more. And for 2003-2004 they were only worth $3000 and $5000 respectively.

After months of browsing craigslist and test drives, it was clear it didn't matter which model or year I bought, a Mercedes W211 E-class was going to cost me $7500.

At that point I figured I'd just keep saving and get a Lexus 2IS for $10,000 as it was much better value despite the difference in owner reputation.

tldr: The used market knows exactly what a car is worth regardless of owner reputation. Nissans are worthless because they're shit cars.


Until Masayoshi Son & friends face the music, or the convincion rates drop from a comical 98%, I'm inclined to believe this was entirely politically motivated.


>Is this actually true or merely a theoretical thought?

On one hand you have FCA (I'm sorry, Stellantis) which leans into its not so positive reputation and does just fine.

The other hand you have Toyota who spend the 90s and 00s digging a goodwill moat in the minds of premium consumers.

Both approaches work but for different demographics. You'll never see a 4Runner with a magnetic company sticker sitting in an industrial parking lot or in less well off part of town and you'll never see a Pacifica in an upscale suburban driveway.


> Both approaches work but for different demographics. You'll never see a 4Runner with a magnetic company sticker sitting in an industrial parking lot or in less well off part of town and you'll never see a Pacifica in an upscale suburban driveway.

Huh? Pacificas are everywhere, especially since they also have the only PHEV minivan in the US. In the PHEV Pacifica FB group I'm in (I do own one, so I am a bit biased here), many people have Pacificas alongside Teslas and other EVs. But even the gas Pacificas are everywhere, including "upscale suburban driveways".

Though your point does still stand about FCA/Stellantis' reputation: we had to get over their our perception of them when we got ours, and I would never consider any of their other vehicles. But our Pacifica has been a really great van. I'm just amused that you picked the one vehicle in their entire lineup that doesn't prove your point.


I wanted to say Dodge Journey but they don't make that anymore and it wasn't really a popular fleet vehicle. The nature of the comparison I had to make kind of forced my hand. The Pacifica (minivans in general, too much $$ new) doesn't scream negative equity nearly as loudly as the Journey.

You're right about the PHEV thing attracting a lot of people who otherwise would never own a Chrysler. Checking "just the right boxes" is something FCA is really good at with their more niche vehicles. The high horsepower Charger/Challenger/Cherokee and the Jeep Wrangler are amazingly good at creating a way for the married couple who can't agree on what vehicle want to both leave with enough of their boxes checked.


Pacificas are very common in upscale suburban driveways. Source: live in an upscale suburb with lots of Pacificas in the driveways. Honda Odysseys and Toyota Siennas are popular as well but probably not as much as the Pacifica.


I live in Palo Alto. I have a Pacifica (PHEV). I see many many Pacificas on the road and in driveways. The MSRP of a fully loaded hybrid is 54k. The MSRP of a fully loaded gasser is pretty close.

The reputation hasn't stopped FCA from selling to this market. Wranglers and Grand Cherokees are pretty common too, as well as the rare Hellcat.


Car dealers make their money from trade-ins, parts and service (new sales are often a loss leader to get you in for service work - everyone is driving for the best deal even if the dealer loses money), so the dealers at least care.

Car makers need to do well against the competition, and resale value is something that people look at. They want your car to last 10 years and then fall apart - that being about the time people start to be willing to call a dead car dead of old age. Though they do like having a few collectors cars that are a lot older than that around because collectors also feed into car culture.


They're not incentivised to do anything other than maximise their quarterly profits.


I know that cynicism is popular, but in fact their incentives are for more than that. The executive who wants to last - and most do - needs to ensure there is a profit next quarter as well. Sure they will take profit today vs next week, but they also invest in r&d because they know if they don't eventually there will be no bonus at all next quarter.


I would really like to see some data on how much resale value factors in for purchase decisions in regards to gaming equipment in average.


No real data, but in my decades of gaming I didn't really hear of people buying the top card in hopes to resell it later and make it affordable.

In my experience people buy what they can afford. So mostly *60/*70 (Ti) Nvidia cards. Few people who I know bought the 1080 are still using it. The second life for gaming GPUs mostly is to serve friends/relatives who ask to help building a PC for them.


Some anecdata, I buy midrange cards and never try to sell them. They usually end up in the machines of friends or family.

The purchase price is what I am willing to spend on the device and it's usage, and a healthy dose of pragmatism about what is actually necessary.

I also overclock to stretch their usefulness out but I must admit the leaps in each generation recently, as well as some fundamentally new technology capabilities mean I am not keeping up as well.


I don't have data, but I do participate in an enthusiasts forum. It's a huge thing for a lot of them, because a top card costs quite a chunk of cash (even before the current shortage), maintaining resale value allows them to stay at the top for a relatively modest outlay every card generation.

Of course right now you can sell 4 year old cards for a profit, the market is crazy.


On average, I imagine it's low. However, anecdotally the gamers I know who are buying $1000+ cards, generally do so every 2 years with the intent to flip them and buy the newest hottest card.

In a similar train of thought - there might be better data on this question if one was to look at the photography equipment market. Or other used consumer markets with high re-sale value.


>car makers are incentivised to try to ensure their vehicles have decent resale value

Why? They are only incentivised to make more profit, and selling high-tech expensive cars that break after 10 years is great for that. The ones that will bear the cost of that will be either the financing companies (and it would be fun to see the market collapse as the current crop of shiny German cars hits the 2nd hand market and no-one is dumb enough to buy one), or those poor souls who insist on buying old-ish cars instead of leasing like everyone else.


Now days it is often the automakers themselves doing the financing/leasing, so if a model has poor residuals it directly affects their profits.

Even with third-party financing, the anticipated residuals influence the attractiveness of the lease offer. A cheaper lease offer means more sales for the automaker, and thus more profits.


Personally I don't think the market has yet caught up to the fact that today's new cars will make horrible purchases as the 3rd or so owner.

All the financiers have to do is make sure someone buys it for a good price after 3 years of being leased from new. That's not a bad proposition - the car will probably last a while longer with all of its electonic toys and gizmos working. It's the buyer after that (of which I am usually one) that will find out how expensive the car is to maintain.


Someone learned from the Cisco hardware glut in the dot com crash!


Just don't give them ideas about Cisco's current solution of moving to subscription based licensing network switches


That's basically GeForce Now, in this context...

So, I'm afraid that they already got (and applied) the idea :p


> moving to subscription based licensing network switches

Moving to? Cisco owns Meraki, subscription based licensing is Meraki's entire business model.


They also learned from the previous crypto crash where they were stuck with a huge stash of 1060s.


Learned what? How to create a bunch of junk that will be unusable in a few years?

https://en.wikipedia.org/wiki/Planned_obsolescence


can somebody explain?


Cisco and Sun were the go-to big name equipment suppliers to many startups around the dot-com days. A lot of it was stupid expensive (like 150k for a sun server with the performance of a 5k Linux box, or 20k for a basic Cisco router). Well, when the startups folded a huge amount of that equipment got sold for pennies on the dollar and Cisco basically almost went bankrupt - and Sun basically did.


the glory days of just bonkers sun servers! as a young pup consultant fresh in the USA, i was lucky enough to help setup a fully loaded sun enterprise e10000, gigantic (for the time) external disk arrays and a room-sized storagetek powderhorn[0]. it was in dallas for an insurance company ~1997. all in-house apps, crunching credit card risk stuff i think? an interesting quirk is that they were an almost all-X11 shop! they had a really sweet custom CDE setup. not what you'd expect at that type of firm. would love to know what that e10k eventually sold for.

[0] https://iscgroupllc.com/en/supported-equipment/tape-librarie...


> Nvidia is trying to get miners to buy mining-only cards, because those can't be sold to gamers down the line.

Afaik Nvidia already tried that [0] but miners didn't really bite because the lack of resale value for those cards cut too much into their profits.

[0] https://youtu.be/TY4s35uULg4


What is unsustainable about Bitcoin?


Is there anything sustainable about Bitcoin?

But getting back on topic, Bitcoin miners long since moved to custom ASICs, you can't make a profit with GPUs any more.


I make $7-8 per day, after electrical costs, letting my 2080ti (normally used for flight sim, but when not in use…) run nicehash’s miner software. My electricity costs $0.0816 per kWh.

Not a ton of money but it adds up after a month and the GPU was a sunk cost since I got it for gaming. It literally is profitable, for my situation anyway.


If you're using nicehash you're not mining bitcoin. The payout is in BTC but it mines whatever it thinks is most profitable. On your 2080ti, it's not bitcoin.


> My electricity costs $0.0816 per kWh.

I agree that the statement "you can't make a profit any more" is just incorrect because of the subjectivity of "you", but it's also worth noting that this is extremely variable - my electricity costs $0.38/kWh off-peak and $0.54/kWh on-peak.

Whether or not mining on existing hardware is profitable depends entirely on where you live, and since we're explicitly talking about the effects of an increased demand on GPUs due to mining, people are clearly not just using existing hardware.


So at around $2500 a pop, you'd be looking at a year just to amortize your costs, and that's assuming BTC stays at its current insane levels. (A mighty assumption, since it's dropped 30% in the last week.)


The volatility is the problem as it makes calculations unreliable but a year to cover your costs on a 2 year (if you upgrade to the latest graphics card every generation) or 4 year (if you go every second gen) life is a reasonable investment.

It's literally a ROI of 100-300%.

Or to put it another way it's similar to a risky stock with a compounding yearly return of 41% for four years.

Using a graphics card for mining that you have anyway is just gravy (apart from externalities which are another big problem).


As long as it's taking a year to pay for itself, have a look at bitcoin's change in value over any recent 12 month period.

I'm not really a crypto guy but mining in your downtime on a decent gpu is a pretty good gamble.


He bought it for Flight Sim it sounds like, the mining is just a bonus.

And Flight Simulator 2020 needs crazy specs if you want the pretty graphics at decent frame rates. I was planning on doing the mining on the side just to reduce how much it cost, but I'm mainly getting it for the pretty Flight Sim graphics.


Or looked at another way, with only a year of mining you cover your costs, and everything after that is profit. I don't GPU mine, but I can certainly see why people do.


2080ti's don't cost $2500.

???



That's absolutely insane. I'm sure it's a nice card, but it's not worth three payments on my house.

Doesn't all this limit the game publishers as well? Surely someone who is currently developing a game has to consider whether or not to even care that something like a 2080 even exists, it might as well not.

And if games starts to be developed with older and slower cards in mind, to ensure that games can even play them, won't that hurt GPU sales in the future?


Scalpers prices are not retail. I have bought around 4 3070s/3080s all for under 1000 at actual retail pricing.


When even retailers have these prices, then those are the prices.

> I have bought around 4 3070s/3080s all for under 1000 at actual retail pricing.

How much time and effort did you spend to accomplish that?

I've signed up with multiple AIBs and Nvidia itself for months to get notified if anything I'm interested in gets in stock. Nvidia stopped selling directly in my region (Europe) a while ago, no AIB has notified me yet. Probably because I picked all the most affordable models, all of which are still more expensive than 3080 FE MSRP, while 3080 FE has not even an official retailer left in mainland Europe.

Sure, I could setup a whole range of alerts and spend all day hanging out in a bunch of discords to catch one of those super rare stock drops.

But tbh that's not the experience I'm looking for when I'm already willing to spend money: I don't want, and most people simply can't, having to organize the rest of their life around the possibility for a purchasing "opportunity" at any given moment.


I literally just refreshed this page like 5 times a day. That is it. 3070s pop up all the time.

https://www.reddit.com/r/buildapcsales/new/


You also need the rest of the machine to put it in.

Can't just buy a gpu and plug it into a wall outlet.


Used on Amazon is $2099.00


That sounds kinda low, at least compared to the 8-9€ that nicehash allegedly pays me out in profitability with my 1080 Ti+5800x at €0.32 per kWh.


Please stop doing that. You are just wasting energy.


Las vegas called, they want you to know they have the brightest and most energy consuming lightsource* in the world blasting at the sky, drawing fambling addicts like a moth to a flame.

*excluding laser research laboratories and weapons.


The luxor light was originally 39 Xenon bulbs running at 7 kW each. 243 kW wasn't that much energy to start, but they actually run only half the bulbs now on a rotating basis. So about 120 kW.

The light costs about $51 an hour. Arguably the smallest expense involved in running a casino hotel 24 hours a day. Less than a rounding error.

They cut back to half-brightness not because of money, or energy, but because they thought the light pollution was a little excessive.

The strip is mostly solar-powered so the Luxor is basically just taking sunlight and beaming it back up into the sky.

It's not like you could take that energy and ship it elsewhere, or do something more productive with it. The Strip's solar plant exists because of The Strip. If the Strip didn't exist then you'd just have sunlight hitting rocks in the middle of the desert like everywhere else in Nevada.

Oh, and moths to a flame? That's literal. There's an entire ecosystem built up around the moths who flock to the Luxor, the bats that eat those moths, and the owls that eat those bats.


they should also stop that


But gaming is fine, that's not a waste of energy at all.


Well.. yes?


I didn't encourage or discourage gaming. Also, mining means stressing the GPU 24-7, gaming is occasional. ... if you're gaming 24-7, then please stop doing that to, it's not good for your physical and emotional well-being :-(


In reality most mining happen with under-clocked GPU cores (and admittedly overclocked VRAM), and at very stable temperatures. The GPU that is used 24/7 for mining will be far less stressed than a GPU that is powered on and off, and cycles through a lot of thermal changes throughout the day


So, will the occasional gaming work still consume more energy / produce more heat?


Please continue being butthurt because you don’t understand the value of energy. It’s super cute.


For one thing, it consumes more electricity than the entire country of Norway: https://www.visualcapitalist.com/visualizing-the-power-consu...


One of the issues people have mentioned in this thread is that cards sold by miners are often burnt out or nearly burnt out. In that case, it seems like cutting off miners from the secondary market would be an improvement for the secondary market.


I someone who hasn't bought a /new/ card since a 980ti, I find this talk of 'crypto burned gpus' to be a bunch of hooey. 1080ti x3, 1660ti x2, 2080ti x2... (We keep three gamers in cards around here, those aren't 'oh noes, this one fried, get another)... not one of them has had an issue.

Nor did the six P104s I picked up for an research project. And those cards smelled.. funny. I'm pretty sure they'd never seen aircon, and had no identifiable oem markings that I could find, but afaik, they're still chugging along 18 months after /whatever/ was done to them in their former life.

Honestly, I wonder if 'gpu burn' wasn't nvidia's first attempt to mitigate the cashflow drain of the crypto-cast-off-market.. before they decided it was more convenient to blame the need for drastic measures on a supply chain issue of their own design. -sigh-


Its an issue most people don't worry about because they're running exactly 1 GPU, which they wanted because they wanted to game, and if it dies, it dies.

But Google, Amazon et al. are very familiar with the concept of hardware lifetimes. Internally, calculations for some algorithms are done based on MTBF values for components - i.e. the cost of doing a thing is a certain number of CPU-hours, and you know a CPU will give you X-hours before it's liable to be hardware-dead.

A second hand gaming GPU has a very different power-on profile to a mining GPU - a gamer is going to struggle to on average put more then 4 hours a day or so through a card, most likely less. A miner is going to have that thing powered on the whole time, permanently. Even if the GPU is fine, the DDR RAM has been aging and that stuff fails faster.

The short answer is: people are going to be asking for a discount based on the expected lifetime of ex-miner hardware, once we know what that is. If the answer is "well it might last 6 months or it might last till you replace your machine" then the price will now reflect that expectation and risk profile. Not to mention the dilution factor which will be actually failing hardware being sold off by miners without properly marking it - after all, you might as well let someone gamble that bit flips in the GPU only lead to graphics aberrations rather then bad hashes.


You and I know different gamers though. People who buy expensive gpus usually push it for 8 to 12 hours per day on average.


While the cards are used heavily, thermal cycling arguably is worse than running a card 24/7. These cards do not generally experience any thermal fluctuations and were probably kept within adequate temps


I don't know much about GPUs and am curious how this "burn out" happens, do you have a link for those of us who'd like to read more about this?


There's three main ways GPUs wear out, silicon electromigration, electrolytic capacitor dryout, and fan bearing failure. And the first two happen much faster at higher temperatures. Temperatures are similar between gaming and mining, but miners run 24/7 compared to gaming 1-2 hrs/day, so the GPUs age like 10x faster. But still, GPU failures are pretty rare, I think the concern is overblown.


Miners undervolt and often underclock though: heat is their enemy, so they’re more particular about this than gamers are these days.


They also sometimes do GPU BIOS modifications, which is a fun thing to discover once the card ends up on the second-hand market and you happen to buy one. Luckily the fix is to reflash the BIOS using a matching one from TechPowerUp GPU database, but this assumes that you even know that this is something to pay attention to.

Source: happened with an RX 560 that I bought second-hand. Driver installation failed in Windows 10 due to the modified GPU BIOS. Was fixed with a reflash of a stock GPU BIOS using atiflash.


Any idea what they modified?


I didn't check it, but if I had to guess, it might have to do something with allowing the card to run using settings that make it more suitable for mining. Someone more familiar with GPU mining can correct me here.


Usually memory timings, at least on my 5700 XT


Totally true- I went through the process of manually overclocking my 2080ti for max hash rate and the best settings involved setting a power limit that is less than half the card’s 100% limit.


> Heat is their enemy

Sometimes literally: https://www.youtube.com/watch?v=fr8bp8a2QS4

"A Bitcoin Miner Heatstroked In His Sleep. This Is What Happened To His Organs."


> electrolytic capacitor dryout

Has anyone spotted electrolytics on a card in the last ten years or so?


Uhhh every single one. Here's the Nvidia 3070 for example: https://www.techpowerup.com/review/nvidia-geforce-rtx-3070-f...


I don't recognize the manufacturer's mark on those, but they're almost certainly solid polymer capacitors and not electrolytic.


Anedoctal but my two last GPUs burnt out after a few years. Bought new GPUs from reputable suppliers. Never mined or overclocked besides factory overclock (which for most of the time I had disabled). I was playing a lot more than 1-2 hrs/day. I guess it was the worse of both worlds. Heavy usage + cycling.


I’ve purchased graphics cards from the used market, and used them for years. Never any problems. One of my go to cards is 5 years old … that’s when I bought it - I’m guessing it’s much older.


Just normal wear, accelerated because it's always under load. The used cards are fine most of the time if the temperatures were stable under 80-90 degC.

The main cause of failure is the VRM, those components are the hottest, least reliable and least cooled.

Sadly, sometimes a blown transistor or capacitor can take out the whole GPU.


Too much heat causes flex and movement that can break solder traces, and makes it easier to let the magic smoke out.


Flex is caused when the temp changes. Mining cards stay at the same temp and don't move around a lot while overclocked gaming cards are getting flexed multiple times a day


If your GPUs run too long hot, the board literally starts to melt (the plastics, solder, etc).


on contrary, miners tend to run gpus undervolted and underclocked for efficiency. gamers tend to run gpus overclocked (and sometimes overvolted) for performance.


Miners care enough about power efficiency and longevity; they don't run cards super hot.


Most scale oriented mining rigs I've seen pack cards super close together, even if you run them at reduced frequencies thermal environment is not great. See https://us.v-cdn.net/5021640/uploads/editor/do/j86gsm9cxvl2.... for example.

Aside from a few top end models modern desktop GPUs are not designed for continuous operation at max load. When you combine than with higher temperature the lifespan of the cards is indeed reduced. The real question is how much this matters.


Latest Nvidia GPUs have large Tensor cores and RT cores but miners never use them. I wonder is it better for the situation.


> The real reason Nvidia is doing this is that when mining profitability inevitably drops, either because of a crypto price crash or Ethereum moving to Proof of Stake, the miners will flood the used market and ruin Nvidia's profits for a few quarters.

Taking into consideration that the gamer segment is now well aware that miners and scalpers are ruining their supply, I really hope that when the flood of used cards happen, nobody with a grain of salt will buy devices that have run at 98% their thermal limit for years. I really hope that market-ruining miners will find themselves with a ton of hardware nobody wants anymore.


Please take into consideration that this will be the same naive, impressionable "market segment" that repeatedly pre-orders new games, even though there is no real reason to do so, as the games are digital copies, so there is no scarcity. The same market segment also rewards shitty game companies, producing half-finished, barely working product, with their money again and again. All because of a combination of deviously good marketing and FOMO.

So yes, I fully expect those soon-to-break GPUs to sell like hotcakes, and a lot of crying soon thereafter.


PC's have limited/collector's editions too, despite the actual game ultimately being a digital code.

https://www.gamestop.com/video-games/pc-gaming/games/product...

It's not like pre-orders are objectively useless like some people may paint it.

> The same market segment also rewards shitty game companies, producing half-finished, barely working product, with their money again and again

Most people buying PC games aren't the ones buying top of the line dedicated GPU's for their gaming rigs. They also aren't ones who will scrutinize super technical details (nor even gameplay elements) as if they are Digital Foundry. Lotta weird generalizations here.


I'd rather buy a used card from a professional miner than from an enthusiast gamer. The former card will have run at very stable thermals, while the latter will probably have gone through a lot of thermal stress resulting from heating up and cooling down, and component stress from power on/offs.


Professional miners usually underclock and undervolt their cards. A constant load is also less stressful on the die and pcb than repeated heating and cooling cycles. The one thing you might have to replace on well kept GPUs are the fans.


This is what they said in 2018. Turned out miners WERE primary driver of growth not gamers.


2000 series was expensive and underwhelming, and raytracing wasn't really viable in real-time with other graphical settings cranked up.

3000 series is a huge performance boost, reasonably priced (at least at MSRP), and gives comfortable buffer on lots of scenarios like high-end VR, 1440p at very high FPS, and comfy 4K with all the good stuff turned up.

Meanwhile, the GTX 1080 was cheap and could basically play everything at 1080p. I think gamers just skipped over the 2000 because it was lame.

But hell, I hope you're right. I'm still rocking a 980, and I've not had any success trying to grab a 3070 to upgrade. Maybe these LHRs will actually free stuff up. (But to be honest, the 980 is still doing fine with most of what I play at 1080p.)


18 months ago I could get a 2070 Super for $550 and the 1080 Titan cards were $799 - 900 at launch and long after. The 2000 series was a lot of bang for the buck.


At the start I thought that miners weren't really a force to reckon with but when I saw that the scalpers are selling their received cards on the same day to miners I changed my opinion. I think people severely underestimate the proportion of miners at this point, overall they aren't a majority but during Q1 2021 they probably were. I'm part of a few botting groups, although I don't take part. The current price difference between the cards can also be partially explained by how much hashpower they have for mining ethereum.

Some back of the envelope math. The current hashrate is about 650000 Gh/s, which is almost 4x as much as at the start of the year. So an increase of about 50000000 Mh/s. A 3060 Ti produces around 60 Mh/s, that's about 8.3 million 3060 Ti's. Of course not all of the added hashpower comes from new cards so the numbers need to be taken with a grain of salt.


my 1080 ti sells for 30% more than i paid for it 3? 4? years ago. its price has fluctuated in mostly perfect tandem with crypto. just based on first hand experience, your claim (if its what you are actually claiming) that miners arent influencing the price is pretty wrong.


My point was more nuanced than that. Of course miners are influencing GPU prices. If miners stopped buying all GPUs, prices would probably go back to MSRP pretty quickly.

But stopping miners from buying one GPU model won't make it sell at MSRP. Miners switch to buying other cards, driving the price of those even higher, but the LHR cards are still going to be out of stock everywhere and scalped for 2x MSRP, because there are so many gamers buying GPUs.


I don't think this will help pricing or availability much either. LTT did a video on this topic somewhat recently and it turns out a lot of the reasons that you can't get a card right now is related to chip shortages and people (yes, regular gaming enthusiasts) buying any card they can find. Even cards that already have terrible mining efficiency are scarce.


Unless the miners are cutting off the supply at the silicon production level. What's to stop Antminer (or any other mining asic company) from paying 10x as much for a majority of TSMC capacity, RTX and Ryzen supply be damned.


Most of TSMC's capacity is allocated years ahead of time. They're contractually obligated to supply AMD wafers at a predetermined price and volume.

Also, GPUs are pretty good at mining Ethereum. ASICs are only about 2x as efficient, many miners would rather have the security of knowing they can always sell their GPUs to gamers if it all comes crashing down.


> Nvidia is trying to get miners to buy mining-only cards, because those can't be sold to gamers down the line. They'd rather mining cards become e-waste in a few years than get resold.

On other note, the "cloud" Vega that AMD sold to the very few cloud videogaming companies comes with exact same limitations, and a clause of non-resale, and non-refurbishment. This way buyers, can't simply solder display connector to those cards, and sell them on open market.

Imagine Intel would've sold their Xeons with the same limitations... but wait, they actually did this for "custom fused" Xeons they sell to big dotcoms.

Now, who said that silicon vendors can't "vendor lock" their dotcom clients? By buying direct, all those dotcoms have exposed themselves to an even bigger supplier risk of this type, and not reduced it.


Don’t gamers usually frown upon buying cards previously used for mining? It’s like buying a used car that used to be part of a rental fleet.

I suppose demand is high enough that people will buy whatever they can get though.


Yes, in the same way that “audiophiles” frown on playing a CD before running it through the demagnetizer.


Hard to tell from an ebay listing whether it was used for mining or not.


I think it will help quite a bit. I've sold two graphics cards in the last year, both of them went to miners.


> The real reason Nvidia is doing this is that when mining profitability inevitably drops, either because of a crypto price crash or Ethereum moving to Proof of Stake, the miners will flood the used market and ruin Nvidia's profits for a few quarters. Nvidia is trying to get miners to buy mining-only cards, because those can't be sold to gamers down the line. They'd rather mining cards become e-waste in a few years than get resold.

What they could have done is instead sell the video-capable cards in a way that discourages bulk buying (limits per customer, maybe a little bit bulkier and harder to correctly cool if several are in a rack) and then release a more bare-bone (no bulk, just a heatsink and optional fan) mining version that can be bulk-ordered and performs well in a rack mount.


Sounds like a win-win

Gamers (generally very price-conscious) get a more stable close-to-msrp price now and in the future, nvidia secures their supply

You're right with respect to e-waste, but I wonder if they may end up really subsidizing hobbyist data analysis.


Is it unsophisticated of me to assume that an ETH crash will just cause everyone with GPUs to switch to a different cryptocurrency? I'd expect miner demand to remain firm unless there's a broad crash.


Why would a gamer not buy a second hand card from a miner?


tbf I wouldn't buy a cheaper used gaming card from a miner, because of potential ware. Electronics ware off, and a mining card would have been taxed much more than any card used for gaming.


probably not, read this thread for details, but miners underclock and undervolt for efficiency. Gamers overclock for performance.


I have and the truth seems to be that if the miner took good care of the card it will probably be fine. Thats why I said "potential". This is not an acceptable risk when Im spending big on gaming hardware.

edit: just to be clear, I dont have the expertise to check the wear, so it just seems like a bad gamble to me


the mining-only cards don't have video outputs


> Nvidia is trying to get miners to buy mining-only cards

I thought the non-LHR cards are fully featured?


They have a SKU specifically targeting miners

https://www.nvidia.com/en-us/cmp/


There is some precedent for hacking ex-miner cards to route the video signal back to a motherboard output over the PCI bus:

https://www.youtube.com/watch?v=TY4s35uULg4

With so many more of them out there, it'll be interesting to see if this becomes more of a thing. Alternatively, it's easy to imagine that depending on just how constrained these are, they might eventually find homes doing non-crypto headless DC workloads, such as deep learning stuff.


They're not producing fully featured cards anymore. They're separating the market into RTX-LHR for gamers and CMP for miners.


Edited to remove incorrect info.


Nvidia literally sells mining cards that do not have outputs

https://www.nvidia.com/en-us/cmp/

This is all a scheme to stop the used market from ruining their MSRP pricing.


meanwhile, at AMD headquarters...

https://www.tomshardware.com/news/amd-rdna-mining-graphics-c...

AMD isn't even going to limit performance on gaming cards, nor are they using a different node for their mining cards like NVIDIA. They are straight-up just going to shunt wafers over to mining cards, while letting miners have both the mining cards and the gaming cards.


Gamers won't be buying used 30xx cards from miners because by then nvidia will have released 40xx cards. Gamers are mostly kids running after shiny things.


>They'd rather mining cards become e-waste in a few years than get resold.

After being used for mining, it's e-waste whether or not it has video out. This helps prevent some poor sucker from buying e-waste.


Does this behavior anger anyone else on a deep level? I get that its hard to buy GPUs right now, but this seems like such an attack on general purpose computing.

Hardware manufactures already segment features between consumer and busness grade parts that the silicon itself is capable of, such as virtualization, but restricting what algorithms one can run is a whole new level.

I am pretty sure my next GPU is going to be AMD due to this behavior by Nvidia.


I'm thrilled by this. This has been a common approach in I think almost every industry.

What nvidia is doing is recognizing that the needs of existing long time consumers / clients / partners are not being met by the current situation. Yes, it inflates short term profits and increases their pricing power, but long run if you can't buy nvidia for your dev box, your game box etc, this reduces the long run nvidia ecosystem.

Crypto folks come and go. Serve them on a short term basis with something at a higher price point or make them lock in long term orders

Almost every business works this way. Long time regular customer - you get pricing option A. Rando runs in with lots of cash? You don't let them destroy your long term customer relationships, but sell them some extra / high margin stuff if they are willing to pay enough.

Intel just went through this ecosystem pain with ARM. They said no to doing iphone chip. Now an ecosystem has built up around ARM with far more investment than would have been there without apple leading the way.


To add on:

none of it is malicious. its just the market stabalization problem

a) let's keep consumer grade stuff stable in price

b) let's charge miners 3x, because they willing to pay 3x, and destroy the scalping market which is VERY anti everything. Scalpers hurt literally everyone.

c) let's not de-stabalize nvidia's income again when eth drops in value. They don't want to be beholden to a coin's gamble either. Basically as it stands Nvidia is far invested into eth's value and if it drops their sales drop sharply because of a massive influx of cheap supply.


Except that miners will simply workaround the downgrade software (as they did in the past) and regular consumers will be the only ones with crippled hardware


Nvidia is implementing a hardware fuse system (a-la the Nintendo Switch) to prevent firmware manipulation. I can't speak to how secure these new cards will be, but the Tegra was an absolute pain in the ass to work with. It took a year before people even figured out how the firmware was loaded, much less how to interoperate between custom and official ones without blowing a fuse. To this day, approaching half a decade since the Switch's launch, you cannot coldboot the Switch into custom firmware.

Considering Nvidia's history with hardware DRM, I think there's reason to be scared. Plus, they've undoubtedly paid attention to the community as the Switch was exploited, and probably intend to further secure the firmware interface with what they've learned.


I think the big difference here is there is no money behind hacking the Switch, it's an interesting problem to a small(ish) subset of people. There's tons of folks that would make actual hard cash off those hacks which will make them much more invested in finding out how to work around the solution.



Eeeeeh, I give a lot less credence to that then I did when I was in college - back then it seemed like everyone was pirating everything (because, facts) but now a days a major consumer for video games is the millennials that have passed the cash vs. free time tipping point of piracy being attractive.

Also, reasonably priced services now exist - I used pandora when I was in college and enjoyed it even with how hamstrung and limited it was - now I use spotify and like... why even bother pirating music now?

Sure occasionally pirating a big title from Ubisoft out of spite alone is pretty attractive but I mostly just nab things off Steam and leave it at that.

Nintendo's anti-piracy efforts are so incredibly misguided - the hardware is the majority cost expenditure for most users and you've already collected that cost so why not try and make your platform not annoying. Allow people to mod games and run indy titles if they so desire. Most of this anti-piracy stuff is just lowering the value to the end consumer anyways.


I'm not really sure what you're arguing here. If you're trying to claim that piracy has no value proposition, then you're missing a market of people who maintain these torrents/sites with the hopes of archiving them for the future.

> Nintendo's anti-piracy efforts are so incredibly misguided - the hardware is the majority cost expenditure for most users and you've already collected that cost so why not try and make your platform not annoying.

Because they don't make money on the Switch. In fact, in the first few months of selling it, they were losing about $30 on every unit sold because of how expensive shipping was. Even today, the Switch runs a pretty thin profit margin, if any. Same goes for the PS5 and Xbox Series X, which gives you a pretty good idea of why these companies are so keen to keep an iron grip on software distribution.


>Nintendo's anti-piracy efforts are so incredibly misguided - the hardware is the majority cost expenditure for most users and you've already collected that cost so why not try and make your platform not annoying.

because the console makers make little (or more often lose) profit from each system, so the draw is to make up or it by selling software. first party software or 3rd party software they get 30% of sales from.

>Allow people to mod games and run indy titles if they so desire

Tell that to the poor PSP. The reality is that 1% use it to run emulators or make homebrew and 99% use it to run free games. To the ordinary consumers, these aren't general purpose computers to tinker around with, they are toys to entertain themselves with. They have computers and phones for the former.


You should check non-developed country.


Do game pirates make 10 million from hacking a game?

Because miners do.


It's certainly not for lack of trying. Fail0verflow, one of the largest and most successful CTF teams in the world, spent nearly 2 years trying to reverse engineer the bootloader, and ended up never finding any real security exploits in the process. There were warmboot attacks (see Fusee-Gelee) that involved code injection, but even then the machine would still recognize it was running in debug mode, and block the user from access to certain functions. Besides being a great anecdote here, the history of Switch hacking is really interesting, and well worth looking into if you have the time.


Hardware fuse? Trying to run custom software can actually brick hardware now?


The switch contains a lot of hardware fuses, with an instruction to blow one.

IIRC it's used (among other things) to set a minimum firmware revision - after upgrading to a new (signed) firmware it blows a fuse so you can no longer run an older signed firmware, which stops you rolling back to when a vulnerability still existed.


Not exactly, but it can be used to prevent you from running custom firmwares or reversing an update. On the Switch, each update would burn a physical fuse on the board, giving the OS a reliable way to determine what the latest update that Switch received was. Prior firmwares cannot be booted on a device with too many fuses burned, which is why the "1.0.0 Nintendo Switch" is going to become an increasingly hot commodity in the coming years.


e-Fuse. Samsung have been doing this for years on their phones. They tie it into their Knox system.


> approaching half a decade

So 4 years?


Reading the Nvidia announcement it's not a software upgrade, but a change in hardware. It only affects cards made after late May.


I still think it's pretty likely we'll see a work around, but if that work around is a custom made firmware patch (like it was for the driver update they deployed IIRC) then that will probably mean the chips you purchased have a less rosy long term cost as future driver updates won't be applicable to your altered firmware. If it requires any physical tinkering with the chip then it definitely increases the effective cost by forcing a labour/card cost and opening up the possibility of expected chip defect as you break some proportion of the hardware you purchase in the process of fixing it.

That all said - yea some people are totally going to hack that or my name isn't 46 DC EA D3 17 FE 45 D8 09 23 EB 97 E4 95 64 10 D4 CD B2 C2.


100% this in the short term, but in the long term workarounds will become harder to find. Have a look at iOS jailbreak history.

I just hope they don’t kill functionality which matters for other meaningful purposes, like deep learning.


There’s not money to be earned by jailbreaking iOS that increases in value the harder it is to jailbreak.


Yes, there is currently a ~$1m public bounty, probably more if you know where to look privately. You’d have to check your ethics at the door in both cases, but they do exist.


Nvidia did not say it will be a hardware limitation. In fact, they will almost certainly implement it in software. For example a "Lite Hash Rate" card will probably have a bit permanently set to 1 in the firmware/eeprom. The driver will read the bit, and arbitrarily enforce the restriction on such LHR card. This solves potential legal issues of retroactively crippling cards already out in the market, since only new cards sold from now on as "LHR models" will have the bit set to 1.

But miners will find another software hack (just like they did for the RTX 3060 earlier) to bypass the restriction.


IIRC wasn't that software hack based on NVIDIA accidentally releasing a driver version that supported the 3060 but didn't enforce the LHR?


They said that previously. Then they released an unlocked BIOS by "accident".


> Scalpers hurt literally everyone.

Not entirely true, and also not accepting that one person's "scalper" is another person's "bought this but decided I would rather have the money it seems to be worth now that I see how much this is".

Secondary markets provide liquidity, allow for original sellers to trade money for time, provide reputational protection based on societal perceptions (this one is a bit weird, and maybe the less defensible of the reasons. Selling your own inventory on a secondary market to avoid negative press for high prices is thwarting normal market information principles, IMO), etc.


> Not entirely true, and also not accepting that one person's "scalper" is another person's "bought this but decided I would rather have the money it seems to be worth now that I see how much this is".

That’s a bit of a straw man, literally no one considers that scalping. It’s generally understood to mean buying more of scarce product than you could ever possibly need with the intent to sell it at a massive markup.

Scalpers are parasitic rent seekers in the digital age. They do nothing to improve the logistics or liquidity of markets. They merely seek to monopolise supply to extract profit from consumers for a product they did not produce.


> That’s a bit of a straw man, literally no one considers that scalping. It’s generally understood to mean buying more of scarce product than you could ever possibly need with the intent to sell it at a massive markup.

That is by no means the accepted definition, nor an apt description. I know people that bought two PS3's when they came out in 2006, one to play, one to sell. That is generally accepted as "scalping", but they were not buying more than they could ever possibly need.

Many, many people that participate in the resale market are people acting like this. They buy tickets for themselves and some extra ones while they're at it because they were lucky enough to by available at the right time and/or get lucky. Sometimes they also do it for the occassional event or good they don't plan to use.

These are "scalpers" in every single single sense of the word, and the only difference between them and someone that makes a business out of it is scale.

> Scalpers are parasitic rent seekers in the digital age. They do nothing to improve the logistics or liquidity of markets. They merely seek to monopolise supply to extract profit from consumers for a product they did not produce.

Scalpers are just brokers that work in a different product. They make money by arbitrage, where the primary sales market is underselling a good compared to the secondary sales market. Additionally, they provide accurate market pricing because people responsible in the primary market don't want to for whatever reason (common ones includes upsetting ones fans, it being more work, harder to work out contract payments, etc).

And lest you think it's easy to just point at scalpers/brokers and at all the money they make because they're selling a $50 ticket for $200, consider that those are the extreme cases, and relatively few tickets go for that. There's also many tickets that go under cost. In the same event. By significant amounts. It's not uncommon to get tickets for 20% cheaper on stubhub. In some cases, when brokers have bought tickets and the event didn't sell out, you can find tickets for single digit dollars that went for $40+ originally.

I've talked about this before here.[1] In that example, I pointed to the market conditions for a specific event at that exact moment, where the primary market (TicketMaster) wasn't sold out and charging $39.50, TicketMaster's own secondary market was charging $36.50 for the same tickets, and Stubhub was charging $27. Who reaps the benefit of getting tickets for more than a 25% discount? Who do you think ended up paying for that? Where do you think the funds came from to pay for that? (here's a hint, you need to make an occasional 200%-300% profit in that business to break even over the long run in a lot of cases)

Here's another question, why and how is this different than the stock market, and in the ways it's different, how does it matter to the perspective you're expressing?

1: https://news.ycombinator.com/item?id=18027560


> These are "scalpers" in every single single sense of the word, and the only difference between them and someone that makes a business out of it is scale.

You're right they are scalpers; they are buying more than needed with the hope of making a quick buck.

However, like most things it's a matter of degree. Your friends were acting in the wrong and in the aggregate they did harm the market, but the people doing it professionally cause the most harm individually and hence tend to raise the most ire.

> Scalpers are just brokers that work in a different product. They make money by arbitrage, where the primary sales market is underselling a good compared to the secondary sales market.

They create scarcity in the primary market, which forces people into the secondary market. If scalpers did not exist, then the same number of people would get tickets, but there would be a greater welfare gain for consumers.

> And lest you think it's easy to just point at scalpers/brokers and at all the money they make because they're selling a $50 ticket for $200, consider that those are the extreme cases, and relatively few tickets go for that. There's also many tickets that go under cost.

They may be taking some risk in their venture, but they're still not providing any value. They are needless middlemen in a market that already sells direct to consumers. Also the cases are not that 'extreme', ask anyone trying to buy a graphics card right now, gasoline a week ago, or toilet paper when Covid-19 was starting up.

> Who do you think ended up paying for that? Where do you think the funds came from to pay for that? (here's a hint, you need to make an occasional 200%-300% profit in that business to break even over the long run in a lot of cases)

Presumably they are claiming a bigger share of the welfare pie than they are giving, else they wouldn't be participating in the market.

> Here's another question, why and how is this different than the stock market, and in the ways it's different, how does it matter to the perspective you're expressing?

The stock market has a social purpose. It provides a means for companies to raise capital to undertake investment. The market system is theorised to be the most efficient means to allocate this capital.

The scalpers don't serve a social purpose, they merely extract welfare from transactions that would have otherwise favoured consumers.


> Your friends were acting in the wrong and in the aggregate they did harm the market

Please explain this harm to the market. I don't see how the market was harmed in any way.

> They create scarcity in the primary market, which forces people into the secondary market.

There exists scarcity in the primary market, because otherwise there would be no benefit to buying the tickets. That's a fundamental misunderstanding you have. Resellers do not generally create demand, they capitalize on existing or future demand.

> the same number of people would get tickets, but there would be a greater welfare gain for consumers.

Define "welfare gain". I contend there is also welfare gain for consumers with a secondary market, but not necessarily the same consumers. The primary market prioritized people that are available at certain times and have money available at the initial sale time. The secondary market prioritizes people that may not have been available at the initial sale time at the cost of a more variable cost.

You can contend that your group of consumer is better or more worth than the group I've defined, but if that's your goal, please do so. Otherwise, a secondary market provides access for at least the same number of people, and sometimes more, as it's possible (and likely) that while some tickets might go at a premium, some others might go at a discount because of poorly executed strategies by brokers.

> They may be taking some risk in their venture, but they're still not providing any value.

They are. That are providing access. Without a secondary market, after the last primary market ticket was sold, it would be impossible to buy tickets to that event. Even if you allowed a secondary market but somehow restricted it to only those that intended to go but could not, you would shut out all those that wanted to go but could not be available to buy tickets during the period it was initially on sale on the primary market. For some events that's as short as a few seconds (and yes, even without brokers).

> They are needless middlemen in a market that already sells direct to consumers.

So is Amazon. So is your local Supermarket. So is any fresh fruit or produce market for that matter. I mean you can just drive to the farm, right? I hope you only like your produce and fruit in season, because people that warehouse it to sell at times when the market isn't flush with that product are just needless middlemen in a market that sells direct, right?

> Presumably they are claiming a bigger share of the welfare pie than they are giving, else they wouldn't be participating in the market.

If all you prioritize is cost, then you're not serving people very well. The very nature of a market is that the many diverse needs of the buyers will be served by different sellers that offer slightly different incentives for different costs. If we only prioritized for cost in food, we'd all be eating rice and beans every night and that's all that would be grown. Instead people prioritize taste, and nutrition, and health, and we have an actual market. If we only prioritized for cost in vehicles, we'd all be driving either a bicycle or a stripped down motorcycle, because who cares about comfort or safety?

> The market system is theorised to be the most efficient means to allocate this capital.

The market system is theorized to be the most efficient means to alloow buyers with diverse needs find a seller that can provide those needs. Sometimes that's cost, sometimes it's something else.

> The scalpers don't serve a social purpose

I've outlined some already above. To repeat, they provide liquidity, meaning there is availability of tickets at a cost people are willing to pay more often than without them. They provide the ability to find the true value of a ticket at any time, rather than the fiat price that was offered initially. This can mean that tickets are available for cheaper than originally offered for (see my real life example noted earlier).


> So is Amazon

You lost your entire argument right there. Amazon doesn't price gouge, and buys with the express intent to sell with reasonable margins to customers. They provider valuable services, like customer service and fast delivery. Scalpers provide jack shit value other than trying to rip off customers because they got something first, while offering no other value to customers.

> they provide liquidity

No, they don't. They steal liquidity, and sell items at markups while offering no other value to customers. None. Zero.


> Amazon doesn't price gouge

I didn't say they did. But by the argument of the GP, they are often (depending on the product) "needless middlemen in a market that already sells direct to consumers", which is what I was responding to.

> They steal liquidity

They offer stuff for sale in markets which would have nothing for sale at other times (because if supply didn't outstrip demand, there would be no profit to be made). That is liquidity where it might not have existed previously.

I understand not liking scalping. I don't necessarily like it (I would prefer there was enough supply to satisfy demand). But there's a difference between not liking something and not understanding it and denying the reality of it. You can't stop it without understanding what makes people buy things to resell at a profit, why others are willing to pay that extra amount, and why there aren't enough of that thing to go around in the first place which allows it to happen.


And you didn't provide any argument against them being "needless middlemen". Many middlemen are not needless, like Amazon, where a value is provided that benefits manufacturers, distributors, warehouses, sellers, and buyers. Some asshole buying tickets or PS5's specifically to resell with massive price hikes is not a valuable middleman providing a valuable service. They're a leech, forcing themselves into the middle of a transaction they didn't belong in the first place to steal value from both sides of the marketplace.

HBO was a perfect example of this. Cable companies acted as the middlemen, because HBO didn't have the staff or inhouse expertise to operate a direct-to-consumer facing product. Now they do, but cable companies can still offer services that make their participation as middlemen sustainable and desirable for some consumers.

> That is liquidity where it might not have existed previously.

It did exist, only it was stolen by scalpers. They're not creating value out of thin air. They're not redistributing assets geographically to make them more accessible, or offering secondary insurance or warranties that make choosing them a smart option. They're stealing opportunities from actual customers looking to purchase a service or good, but instead are forced to secondary markets because of rent-seeking parasites.


Scalpers only exist in markets where somebody is selling products below value.

Without scalpers, the product is distributed by sheer luck like a lottery, or being well-connected and knowing somebody who has early access to the product.

You can argue that a lottery mechanism or being well-connected is more fair that having the necessary money. There are a lot of people in planned economies where everything from food to housing to transportation works that way, and they would probably disagree.


> Not entirely true, and also not accepting that one person's "scalper" is another person's "bought this but decided I would rather have the money it seems to be worth now that I see how much this is".

Even just dropping resales to one GPU per person per year would make an enormous difference, let alone if it was limited to people that genuinely bought the one GPU for themselves.


It doesn't work. It's unenforceable without the government to enforce it, and even then people will skirt it.

Rules constraining how a market functions often don't work or have unintended consequences. The only real solution is to attack supply and/or demand. A rule limiting how many a person can buy doesn't actually affect demand, it just affects that market's ability to respond to demand. You get people that circumvent that, and if it's onerous enough you'll get a secondary market where they cost more but there's no limit on the amount you can buy, if there wasn't one already.

That is, it's restrictions on a free market which create secondary markets. If the price was constantly in flux base don demand, there would be no secondary market because it would provide nothing over the primary one.

People don't want that though, because we've been conditioned over the last century to expect prices to be stable because we've had large companies that decided to innovate and compete in other areas that decided pricing things accurately based on real world local conditions. I mean, I understand, I'm the same way. I don't want to walk into a store and find the thing I went to buy is twice as expensive as it was yesterday.

I do think that's a more natural and sustainable state though, as long as market principles are actually prioritized though, instead of just being paid lip service (having one entity control a large chunk of a market is bad, and so is making it hard to reason about items and features in a market, as competition and information are the life-blood of free-markets).


> It doesn't work. It's unenforceable without the government to enforce it, and even then people will skirt it.

Okay, but when I said "dropping" I wasn't talking about a rule, I was using that to demonstrate the problem.

> A rule limiting how many a person can buy doesn't actually affect demand, it just affects that market's ability to respond to demand.

There's a nearly fixed supply, because no amount of demand can affect the shortages.

There's a nearly fixed demand, because enough of the cards are going to be sold at MSRP to keep stoking it.

In a situation like that, someone arbitraging the prices is not helping supply and demand meet, they're just making a profit.

You want some amount of secondary market so that the people that very badly need a card can pay extra to get one now. But a tiny percent of cards going onto ebay is enough to fulfill that role. If half the cards end up massively marked up on ebay, it doesn't help allocate them more efficiently in any significant way, it just takes more money from people.


> when I said "dropping" I wasn't talking about a rule, I was using that to demonstrate the problem.

How is restricting activity not a rule? I don't think it would demonstrate the problem at all because I don't think it would actually do much (most people would ignore it). Maybe I'm misunderstanding what you meant originally or mean here?

> There's a nearly fixed supply, because no amount of demand can affect the shortages.

If demand dropped to the point below supply it wouldn't be a shortage.

> There's a nearly fixed demand, because enough of the cards are going to be sold at MSRP to keep stoking it.

> In a situation like that, someone arbitraging the prices is not helping supply and demand meet, they're just making a profit.

Sure they are. Without a secondary market and with a primary market that is fixed-price and a limited supply, after demand meets supply, nobody gets any more of that product, which means there's zero liquidity. With a secondary market, people re-sell for a profit, and the market has liquidity again. The people that want it are able to get it as long as they are willing to pay the extra amount. It's possible to buy the item where it would not be previously.

> You want some amount of secondary market so that the people that very badly need a card can pay extra to get one now. But a tiny percent of cards going onto ebay is enough to fulfill that role. If half the cards end up massively marked up on ebay, it doesn't help allocate them more efficiently in any significant way, it just takes more money from people.

I agree. I just don't think you can do anything about it usefully except to try to increase supply or reduce demand through various means. Everything else I've seen fails or has unintended consequences (which are hard to reason about ahead of time because they are by nature unintended).

I'm not arguing free markets always produce a good outcome, but I do think they generally provide the best outcome you can expect given the environment without relinquishing all control (and I think central planning only works for limited scopes and limited time frames).

The simple solution is to just increase the price of these cards to what the market deems they are worth, and the resale market problem goes away. The problem is that nobody (even me) really wants that, I'm just willing to say that while I don't want it for various reasons, it does solve the problem. It does that by reducing demand by increasing the price.


> It doesn't work. It's unenforceable without the government to enforce it

It seems to be working pretty well here in the UK actually, for nvidia's Founders Edition cards. They have a relationship with a single retailer, and you can buy one card.

Yes, people can circumvent it to a small extent, but not that easily.

You're just parroting your free-market religion here.


Yeah I always find it interesting that statements like that ("scalpers hurt literally everyone") can just be made and treated as gospel by most people. Not only is the statement not self-evident, but to your point, just a small amount of thought on the issue makes it obvious what the value is.

People love to get mad at a scapegoat rather than a root cause. So you blame the scalper rather than realizing that the concert you bought the ticket for set their prices way too low - perhaps because selling at the "true" price (somewhere between the sticker value and the scalped value) - would generate negative goodwill, or it would give the perception that an event (say Coachella as the classic example) is only "for rich people". The irony is of course that selling at an artificially low price doesn't suddenly make it not for rich people, it just adds a small random chance that you'll be able to convert your own time sitting there refreshing the website across many browsers into a cheaper-than-it-should-be ticket. But functionally the vast majority of people end up buying from scalpers or at least at a slightly above sticker price.

There's a related discussion about so-called "price gouging". IMO it's the classic scalper argument but just in a different form. Price gouging laws are not just immoral but are actively ineffective at their stated purpose; they just lead to the hypothetical price-gouge transaction never occurring. If you drive across state lines to bring HAM radios or water filters or what-have-you during hurricane katrina, and try to sell at above market rate, you'll be tossed in jail and your goods will be seized by the police, rather than making it out to the people who actually need them and are willing to pay 2x or 3x the usual price.

TL;DR: We've all got these twisted beliefs about how pricing works or the law of supply and demand, an illusion supported by the fact that our respective societies are so technologically/economically advanced that we can have massive supermarkets where you buy commoditized items that you can get at reasonably similar prices anywhere. Whereas if you go back in history to a pre-industrial time, a form of pseudo-bartering was the default and there was not this idea of a commodity, but rather every transaction, every buyer:seller relationship etc was a unique and non-commoditized interaction and thus it wouldn't seem weird to have different prices for different people or different prices at different points in time, etc.


Do you have any data on that ‘majority of people buy from scalpers’ claim?

One reason for anti price gouging laws is that it is not uncommon for people to buy out all supply, then turn around and charge more/sit on a stockpile to solve the artificially created shortage they themselves created - a term for that being ‘cornering the market’.

I haven’t generally seen too much anger at someone legitimately opening up supply by importing more or opening up more supply lines (especially if they say that’s what they’re doing). People have been pretty open to paying more in that case (albeit maybe not 10x more, though that is more because it’s hard to plausibly have such an increase in cost without literally airdropping supplies - which is a different beast).


There’s no shortage of people who tried to pull that and ended up with tens of thousands of dollars worth of toilet paper and hand sanitizer last year. If there’s not an actual shortage, merely a demand shock, trying to corner a market will not go well for you.


And many more that made millions. The ones that get caught get penalized in public/shamed, but there are many more that were not - I personally saw many amazon sellers doing it for months without any apparently penalty.


> The irony is of course that selling at an artificially low price doesn't suddenly make it not for rich people, it just adds a small random chance that you'll be able to convert your own time sitting there refreshing the website across many browsers into a cheaper-than-it-should-be ticket.

That depends on the level of demand and how low the price is.

It's pretty easy to have a situation where the number of tickets available is higher than the number of people that would have bought tickets for themselves on day one, but you hit immediate shortages when scalpers are also buying.

In a situation like that, scalpers are doing almost all harm. They add liquidity to a situation that already had enough liquidity, and extract tons of money in exchange.

> If you drive across state lines to bring HAM radios or water filters or what-have-you during hurricane katrina

That's the positive case. The negative case is someone buying it and putting it in their garage, or a store vastly increasing the price on something people need and they already had.

If you're trying to get paid for your labor, like driving essential supplies around, I would not call that gouging in the first place.


> It's pretty easy to have a situation where the number of tickets available is higher than the number of people that would have bought tickets for themselves on day one, but you hit immediate shortages when scalpers are also buying.

But the total number of people buying tickets is the same, all that's happen is it's being temporally shifted for the gain of the people that can afford to do so. This only works because the actual offered price of the tickets if far below that real cost people are willing to pay. If tickets were initially offered at an accurate price, there would be no money to be made buying them for resale (well, almost. There's still the option for artist demand to change over time with popularity).

There's only a few solutions to a supply and demand market problem where demand far outstrips supply that actually seem to work. Increase supply, or decrease demand. This has actually been done by some artists and solved the problem. Kid Rock, for example is known to play a large number of dates at a location, inundating with supply to the point only the best tickets can be sold for appreciable markup. Like, in his home town of Detroit, I think he played between 7 and 11 consecutive days in a stadium. Other artists will add dates after the initial sale depending on demand (which often destroys broker profits unless all those dates sell out too).

> In a situation like that, scalpers are doing almost all harm. They add liquidity to a situation that already had enough liquidity, and extract tons of money in exchange.

How good the liquidity there was and how much harm the brokers caused depends on how accurately demand matched supply. If there were 1000 ticket and 1000 people would ahve eventually bought them, then the brokers didn't really help. At the same time, they probably aren't going to make much money, since 1000 people willing to pay $40 doesn't necessarily mean those 1000 people are willing to pay $60, and given that reseller exchanges charge about 10% of the sale cost, they need to charge a lot more to make a profit. Brokers don't tend to want to buy for events where they can't really make money, so they try to avoid these events.

Alternatively, if the event has more tickets than consumers to buy them, brokers don't want to buy those either. Sometimes they do, and they sell at below market, sometimes well below market, just to recoup some of their money (having 20 tickets of 1000 at the event you bought for $40 when there's still 200 for sale on the primary market when the event is in a week means lots of tickets for sale for $20 or way less).

Finally, there's events where there's a lot more consumers than there are tickets. Perhaps there weren't enough tickets at the sale day to sell out immediately. It would have sold out well before the event date though, because there are way more consumers than tickets. In this case, at that point liquidity would have dried up. Brokers provide liquidity over the lifetime of the event. That's what they provide, and for that they extract money. There's a debate to be had as to whether they provide enough value for that service, but it's false to say the event had "enough liquidity", as if there was enough liquidity there would be no margin for brokers to make money, especially not the 10% cost on sale price needed to make a profit on the exchanges.


> But the total number of people buying tickets is the same, all that's happen is it's being temporally shifted for the gain of the people that can afford to do so. This only works because the actual offered price of the tickets if far below that real cost people are willing to pay. If tickets were initially offered at an accurate price, there would be no money to be made buying them for resale (well, almost. There's still the option for artist demand to change over time with popularity).

"all" that's happening, no. Causing people to pay more, even if they're willing to pay more, means they get less benefit out of the transaction.

> Finally, there's events where there's a lot more consumers than there are tickets. Perhaps there weren't enough tickets at the sale day to sell out immediately. It would have sold out well before the event date though, because there are way more consumers than tickets. In this case, at that point liquidity would have dried up. Brokers provide liquidity over the lifetime of the event. That's what they provide, and for that they extract money. There's a debate to be had as to whether they provide enough value for that service, but it's false to say the event had "enough liquidity", as if there was enough liquidity there would be no margin for brokers to make money, especially not the 10% cost on sale price needed to make a profit on the exchanges.

There would have been enough liquidity for the people that cared about the event to be able to purchase. That's enough liquidity. There is more liquidity now, and the benefit is that some of the people who didn't care very much get tickets too. This is a benefit, but it's not worth the downsides that the average amount paid goes up so much and that a bunch of people that were ready to buy a ticket on day one are now excluded.


> moral but are actively ineffective at their stated purpose; they just lead to the hypothetical price-gouge transaction never occurring. If you drive across state lines to bring HAM radios or water filters or what-have-you during hurricane katrina, and try to sell at above market rate, you'll be tossed in jail and your goods will be seized by the police, rather than making it out to the people who actually need them and are willing to pay 2x or 3x the usual price.

The reason is they don't want private individuals entering danger zones just to make a buck - a profiteer could easily end up a victim from the dangerous situation.


So now emergency workers aren’t allowed to be paid. Congrats.


What?

"emergency workers" are not "private individuals".


The reasoning against private citizens was that taking risk to make money was inappropriate. That applies equally to emergency workers.

And by the way, many workers during emergencies are just private citizens.


More often than not price gouging just makes things worse. During the early days of the pandemic you couldn’t find toilet paper in stores, but there were people set up one the road side willing to sell it you for crazy prices. Did these people manage to setup an international supply chain to furnish their road side store? Almost certainly not, they cleaned out the supermarkets ahead of other people.

The same thing happened with the colonial pipeline hack.


Aren't scalpers only there because the product is clearly underpriced? Why not increase prices till the scalpers are gone or simply auction the GPUs off? That's clearly what the market is pointing at.


Normally I'd agree (eg: I think limited concert tickets should simply be auctioned off).

This is a little trickier. You have a consumer grade product aimed at a mass market segment (gamers) being used as a glorified financial market device (crypto).

You could just sell it at whatever price people are willing to pay for (crypto) and make a big buck. You'd likely wreck the gaming industry in the process. If you feel the crypto market is there to stay forever and that it's your best bet as a manufacturer going forward, it could possibly be a good move.

If you think its a temporary fad though, that the gaming market has a larger long term return (if it's allowed to thrive), and that this setback, even if temporary, is harmful to your long term plan, then it's an issue. If you think that the gaming industry beyond the GPU market (eg: streaming grids) have value, and you want to foster those because it will make more money in the long run, then the current situation isn't looking so good.

What it looks like is a large public company thinking more than quarter to quarter for once. It's actually kind of confusing, but that's what it looks like to my untrained eyes.


This is missing half the story. Yes, things can be temporarily underpriced and then an appeal to scalpers makes sense, as scalpers can instantly raise the price to the market clearing rate. But at the same time they can instantly lower the price to the market clearing rate.

What manufacturers and consumers both want is price stability. They want prices to change in regular intervals and in predictable amounts. Both producers and consumers, but much more producers than consumers, need to make long range plans which require stable pricing. So when the iPhone first came out there was huge demand. Why didn't Apple auction the phones off? Because Apple wanted to anchor expectations for what the phone would cost over the long term. They certainly did not want consumers thinking that if they waited the phone would become cheaper. Thus they did not want consumers to think the phone's price was subject to a daily auction. Instead, it's better for Apple to have occasional shortages than to let people think that iPhone pricing will be moving up and down a lot. That allows consumers to make long term plans as well.

So manufacturers want stable pricing, they want happy consumers, and they don't want surprises. Consumers want the same thing. That's why people hate scalpers. You can draw all the supply demand curves you want, but that doesn't change the fact that people need to make long range plans, and this requires stable pricing.


But "scalpers" are the people who stabilise prices, by buying when it's cheap and selling when it's expensive. (Remember that a nominal low price that you can't actually buy at is worse for the consumer than a high price that's actually available).


That's not the point: the point is that Nvidia want to still have regular customers who, when they think "I need a gaming rig" think "Nvidia".

If Nvidia becomes "GPUs are cryptominers", then once demand dries up, their marketshare is zilch, and no one's writing games optimized for Nvidia cards anymore, and there's a big pile of bugs they've not fixed with new games trying to use Nvidia cards.


Even worse, consoles aren't having these availability problems. If you buy a console, and you start building a games library, making friends who you play with on a daily basis (and you usually cannot crossplay between consoles and PC due to skill differences between controller/m+kb, sometimes it works with a controller on PC but most of the time it doesn't) then you are now locked into that ecosystem. You aren't buying a NVIDIA 40 series card, you are buying a PS5 Pro. The longer this goes on, the more customers NVIDIA is losing in the long term.

Inventory levels for consoles aren't quite normalized and available but with a stock tracking discord you can have a decent shot at getting a notice, going to a website, and successfully checking out if you hurry. In contrast you have zero shot at GPUs as a human, there are "cook groups" (the same groups that buy up fancy sneakers and scalp them) using backdoor exploits and botnets or networks of proxies embedded in browser addons, and the hardware is literally are gone the second it's up, or even before.

Rather notoriously, one of the cook groups got ahold of the DigitalRiver item IDs for the 3080 before the launch, and they used API requests to poke orders into the backend. So the items sold out before the listing even went up on the website. That is emblematic of the problem, every mechanism is being probed and any backdoor is being used to punch in orders before humans can get them. There are exploits and botnets and proxies being used and everything, hugely organized and sophisticated operations.

Every major retailer and every AIB partner (Zotac, Asus, etc) is heavily botted to the point where you stand no chance unless you pay for a $600/mo sneakerbot.


To be honest, I used a Telegram alerts group (Brobot) for 3090s and 5950Xs and was able to get both within a week of trying. There were only a couple opportunities but I managed to get 2x3090s and a 5950x within those windows. It's definitely doable, just very annoying. I'd rather get a spot in line than race to be through the door every time.


Sounds pretty exactly like PS5 availability


> Even worse, consoles aren't having these availability problems.

Have you tried buying a PS5 lately?


The scalpers are there because the supply of cards is too low. There is a global supply crunch for pretty much everything right now, but Nvidia also doesn’t want to build out supply for something (mining) which they consider a short term issue.

Increasing supply is the way to get rid of scalpers.


Absolutely - if they wanted they could make a killing (short term) and auction to Eth farms.

That said, they are trying to preserve market / mind share in the longer term with existing customers (gamers, AI/ML) and partners (OEMs etc). And those folks aren't ready to pay the crypto price point.

So they are giving up short term money (from auctions etc) for ideally long term market share.


Short term they could make a lot of money that way, but then they may lose gamers who will likely still want gpus after miners no longer need them. It's not a one off transaction.


Because the scalpers won’t go away. There will always be some poor sap willing to pay double market value for a scalped product.


If they were being auctioned in the first place, why wouldn't that person just buy it in the auction originally?


I notice Microcenter has limited gpu sales to one per customer per month.

Its weird when brick and mortar are like limiting sales, but on the other hand, they want to keep pc builders happy.

https://community.microcenter.com/discussion/7334/graphic-ca...


partners and distributors are forcing retailers and etailers to take PSUs and motherboards if they want to get GPUs, frequently very shitty mobos+PSUs that have been stuck in inventory for a long time and they've been having trouble moving. Like, large quantities, 50 A320 motherboards for one GPU type quantities.

https://www.youtube.com/watch?v=ZxGtMHXWpMw&t=300s

This is one of the reasons that Newegg is doing the Shuffle with those terrible deals - they are passing some of the junk they've been forced to buy along. So now you get a 3 year old watercooling-only mobo and a grenade-tier PSU with your GPU.

This applies to brick and mortar stores too, it's not just about keeping PC builders happy, but if they let one guy walk in and buy every GPU they've got, then they don't get the person coming in to build a PC and buying a motherboard, memory, etc, and they need to move those products because distributors are making them buy them to get GPUs.

The behavior of the AIB partners and distributors is really, really predatory here, they are definitely taking advantage of being the ones in control of a highly desirable commodity.


> a) let's keep consumer grade stuff stable in price

Consumer GPUs had far from a 'stable price' before the mining boom.

GPUs have more than tripled in MSRP once you factor in that NVIDIA has moved lower-tier chips that previously only featured in their lowest end x50 and x60 tier GPUs up the stack and started selling them for $400+ MSRP. Look at the GTX960, which launched at $150 in 2014, against the 3060 which launched at an MSRP of $330.

It's even worse at the high end. Flagship GPUs like the 980ti and 1080ti launched at MSRPs of $650 and $700 respectively, now the high end GPUs are $1200 (2080ti) and $1500 (3090).

> none of it is malicious.

It absolutely is malicious. NVIDIA is trying to stop a strong second hand market from being formed so that they can continue to charge ridiculous prices for GPUs that should be 1/2 to 1/3 their current price if the market was healthy.


I don't know how you think that if GPUs were cheaper then miners would be buying less of them. Miners are a black hole for computing power - they can absorb near infinite amounts of processors since they know (or strongly believe at least) that they'll pay for themselves pretty quickly.

I think Nvidia has some problems and their chips should be cheaper - but if that were the case then this solution (splitting the markets into regular consumers and miners) would be even more necessary.

I also disagree with it being malicious, I think it's a perfectly reasonable decision to attribute to some pretty sane decisions around market preservation. We here know about miners eating up the GPU supply, but for the average consumer Nvidia is just hording their chips or they're idiots that didn't produce enough - no matter what the imagined reason they're the people between the average consumer and shiny ray tracing in minecraft.


> I don't know how you think that if GPUs were cheaper then miners would be buying less of them.

It would increase supply by forcing fabs to scale (would take years anyway, but should happen sooner rather than later).

> Miners are a black hole for computing power - they can absorb near infinite amounts of processors since they know (or strongly believe at least) that they'll pay for themselves pretty quickly.

And that isn't going to change even with these limited GPUs. Mining with ethash is still profitable even with the halved hashrate, and other algorithms like kawpow and cn-gpu are not limited at all.

The only thing that's going to get rid of PoW mining is the entire shitcoin market tanking. As long as the bubble continues there's going to be idiots spending money on scalped GPUs.


The fabs did scale down near the beginning of COVID-19 AFAIK when the economy was in a panic and all sorts of manufacturers were canceling orders from people further up the chain - and that does account for some of the shortage we're seeing now (since that production time was resold to other consumers) but it's a much smaller impact than the 30XX line's attractiveness to miners. I don't think there is honestly the capacity to meet these levels of demand right now (as opposed to there being readily available production capacity that's either idle or doing something that could be outbid).

I also don't really see how keeping all of the consumer groups (miners and regular folks) using precisely the same model of card instead of two incredibly unbelieveably similar cards would actually increase demand. If anything there being a card optimized for hashing (i.e. with unnecessary bits stripped off) might lower the cost to produce such a card and allow miners to actually purchase more of the card compared to paying for a nearly top of the line consumer video card.

I don't actually know how much we'll see Nvidia try and scale up (since that extra purchased capacity will be a liability if Eth suddenly tanks) but I think their decision to increase scale will only be minorly impacted by this effort. I will admit there will be some impact since they could refuse to increase the 3070 supply (please correct me if I've got model numbers turned around) without having as dramatic an effect on their customer base - however, that'd honestly just return them to square one where the miners are going to pick up consumer grade 3080s to keep up with mining projections.

I think the important thing here is that nothing is being made impossible - it's being made difficult which should have a corresponding effect on the value of these cards to miners unless they screw it up again in a major way. People trying to absolutely prevent video game piracy have either

1. Screwed it up and allowed a sharpie to defeat their system

2. Bricked a whole bunch of legitimate users' computes and ended up in class actions

The successful approach to prevent piracy is to price things fairly and while making it less convenient to pirate things - honestly a huge driver here in the modern world is content that's enriched by being online, not stupid "You must have an internet connection to play this single player game" but "If you're online you can tap in a friend for help" - that sort of online integration significantly lowers the value for pirates while allowing legitimate users to only see upsides.


> Look at the GTX960, which launched at $150 in 2014, against the 3060 which launched at an MSRP of $330.

Looks like I'll be hanging on to my 960 for the foreseeable future, then. I'm not interested in mining, but I've started thinking a bit about playing with CUDA, and I'm suddenly a lot less interested if Nvidia might decided to gimp my work because I inadvertently did $FOO that is commonly done by miners.


c.2) let's produce huge amount of e-waste once coins drop again


nvidia could take advantage of eth craze in short run and auction cards or chips. They would make a ton more in short run. But crypto folks would be only customers (in short run) and rest of market would risk migrating away from them.

Crypto is very very frothy, so preserving some supply to bread and butter / ecosystem supporting sales makes a lot of sense to me.


c) is nonsense. There are no downsides to a temporary boost in Nvidia's profits, even if it means profits eventually falling back to normal levels when ETH drops in value. Also, LHR (gaming) GPUs and CMP (mining) GPUs share the exact same supply chain and components. When/if crypto demand suddenly drops, Nvidia will still have to deal with the oversupply of components. Having segmented the market between LHR and CMP GPUs does not in any way make it easier for Nvidia to forecast overall production capacity.


It is a real risk when gamers (the every day bread and butter) or ML model folks (emerging bread and butter) markets will stop using them because they can’t get reliable supply. Both of those groups do quite a lot of driver validation, workload tuning, and other platform specific stuff. If another competitor gets those markets, that will hurt for a long time.


According to Tom's hardware analysis the CMP gpus are leftover Turing architecture that would otherwise have gone to the now less desirable GTX 1660 Ti, or 2080 Ti.

And when they are finally using the new Ampere silicon, it's likely those chips that did not pass QA for being made into a RTX 3080.

So they are getting rid of overstock/dead stock already.


Scalpers hurt literally everyone.

They help people who are willing to pay the higher prices, and they provide a market signal encouraging producers to increase output.


The issue is that production is inelastic compared to demand, so scalping provides no additional value and creates higher prices by making demand seem even higher.


It also creates an incentive for those unwilling to pay high prices to find ways to do without, or to delay their purchase until production has caught up.


There is no additional output.


I suppose the "long term customers" for these GPUs are gamers, right? Don't they also come and go? I don't particularly follow this as I'm not really into games, but it seems to me that AMD has had quite an impressive growth recently. Does that mainly come from people new to the market? I'm actually a "new to the market" buyer, and I bought an AMD mostly because I'm mainly a Linux user and didn't want to take any chances with nvidia given the horror stories I've seen floating around these parts.

The issue with the GPU market is that since it's a duopoly, customers don't really have anywhere else to go. My impression is that people mostly bounce between the two. I'm not sure how many people have that much of a "brand loyalty", especially since this is the "enthusiast sector", so I guess people don't just buy whatever they find at the corner store.

To me, this looks more like market segmentation, the same way that you can't run virtualization on their consumer products, and you can't have ECC RAM on consumer intel chips. I really don't think they're doing this from the goodness of their hearts towards those poor gamers who are priced out of the market, but because they figured that miners would be ready to pay more. Which is pretty obvious, since scalpers are managing to sell those at outrageous prices, someone has to be buying them, right?


The ecosystem nvidia has built and maintains is a KEY differentiator.

Basically, for machine learning, AMD is nowhere - the ecosystem is on nvidia (provided you can buy their stuff). If they can't deliver, then whatever crazy thing AMD is trying in this space (been a few tries) may take hold more. Getting developers access to nvidia becomes key then - games / machine learning tooling etc all then gravitates that way.

For gaming you do end up with some options. Nvidia / AMD / Intel. Wide range here, but been pretty steady need for graphics including top end and lower end options. The OEM's are also customers in this space, everyone going to remote work with virtualized workloads as well if they need a graphics option there and more.

Yes, they are segmenting, but in short run they are giving up $ they would get by selling all stuff with full Eth enabled and perhaps auctioning cards. They'd make a ton in short run, but a few user bases would abandon them. It really is not going to be good for their business if they have another 6 months of supply issues.


It's a matter of loyalty - miners have zero loyalty and will always buy whatever their spreadsheet says is cheapest.

In contrast, gamers tend to stick with brands, and if they're forced to switch due to lack of supply, their loyalty (and therefore future bias toward you company) might switch with it.

So while miners may be willing to pay more money per card today, they're not worth the future loss of revenue.

Like you said, you don't buy Nvidia because you're concerned about Nvidia support. If Nvidia was the only option, you would likely decide "fuck it", deal with any Nvidia problems (and become more familiar with running Nvidia) and become less concerned about Nvidia problems in the future because you have more experience dealing with them. And that means AMD may have lost future sales to you.


Fair enough, I must have underestimated the loyalty part.

Probably because I'm not much of a gamer and hardly have brand loyalty in general. I always tend to compare products and buy what seems to be the better value.


Gamers need games to play and if gamers buy more AMD cards because high end NVIDIA is not an option then game developers will focus their efforts more towards AMD. Going by steam NVIDIA currently has three quarters of the PC Gaming market cornered, that is a lot of motivation to focus development on their hardware and an edge they do not want to loose.

https://store.steampowered.com/hwsurvey


It isn't the "goodness of their hearts", Nvidia just wants to maintain their position as the market leader in the markets that will be there for a long time. Gamers is one such market. Some gamers are loyal to a particular brand of graphics card, but there are also just network effects to being the most popular. Game designers spend extra effort making sure their games work well on the most popular video cards. Influential people like YouTubers, streamers, or game reviewers are more likely to buy elite hardware and talk about what they got.

Market segmentation would only really make sense if Nvidia were capable of saturating all the demand from miners, and wanted to squeeze out some extra margin from them. But right now it doesn't seem like Nvidia is actually able to manufacture enough to meet the market demand at $800 like they initially intended.


Gaming demand is fairly constant, while mining demand ebbs and flows with the value of cryptos. Last time this peaked was in early 2018.

Nvidia knows their loyal, regular customers are PC gamers, so it's in their best interest to make sure these customers get the best buying experience to ensure they stay repeat customers.


> Don't they also come and go?

Myself and most of my gaming friends have been buying nvidia cards for (soon to be) decades now.

Basically since 3dfx went belly up


If this works (spoiler: it won't, it will be cracked within a month), it will create more e-Waste as miners will toss their no-video-output-mining-only cards after they're no longer the latest tech, instead of being able to resell them to gamers, thinning the used graphics card market, forcing more gamers to buy new from nVidia instead of rebuying old cards online.

That makes me angry, it should make you angry too.


This can be just as easier, and probably more truthfully, read as "miners can no longer make the used market a minefield by selling overtaxed consumer cards without disclosing their provenance." Because, yeah, having ex-miner cards burn out is a pretty common thing on the used market. Great!

Cryptocurrencies are not inherently good or valuable and cryptocurrency people aren't special and their world-burning habits and desires need not be privileged.


> Because, yeah, having ex-miner cards burn out is a pretty common thing on the used market.

This is mostly a myth, miners cards are usually undervolted, and only a subset of the card is used.

If your CPU only used it's floating point unit then it wouldn't be as intense as if you were using the whole thing.

The only potential issue is thermal damage, but that's hard to place and has to be close to, or in excess of 90-110c.


The core clock is undervolted while mining - but the memory clock is absolutely cranked to the maximum it will support.

I've been idly mining on an RTX3080 for 6 months now, and the hashrate has slowly gone down about 20% since new. I suspect the thermal pads on the memory chips are slowly cooking. I replaced them once already and restored a bit of hashrate.


out of curiosity, and if you don't mind sharing that info, how many bitcoins have you mined with 1 card in 6 months?

Did it pay for the electricity and the card itself at the current BTC price?


It earns about $6-10US/day, off surplus solar during the day and about 50c of grid electricity through the night.


Interesting, that's much higher than I expected. Thanks for the info!


? My CPU actually underclocks itself if I am running a heavy AVX-512 workload. Actually, back when I had it in a cheaper motherboard, my system would crash because the MB couldn't deliver enough power to the CPU.

But I agree with the first sentence. Lots of miner cards are undervolted because what matters is performance per watt, just like many server cpus.


It underclocks, but generates more heat in the AVX-512 case (that’s the whole reason for the underclocking). If miners are undervolting to reduce power consumption, heat generation is going to lower by necessity.


It's not a myth. These things get racked in stacks of GPUs in what may or may not be actually-cooled data centers. Undervolted or not, when you couple that with constant load you're stressing devices manufactured to consumer specs.

The excusemaking is pernicious.


None of this disproves GP's claims.


> overtaxed consumer cards

Actually, miners optimise for computation/kWh of electricity (versus computation/16ms of time for gamers), which leads to running mining GPUs at significantly lower wear and tear level (lower voltage scaling, lower clock rate, etc) than gaming GPUs.

> having ex-miner cards burn out is a pretty common thing on the used market.

Having used GPUs in general burn out is somewhat common, but it's less common for ex-miner cards than for ex-gamer cards.


They are clearly marking the new models with a new suffix on the model number. As someone who has been trying for months to buy a 3080 and has zero interest in crypto, this is fantastic news... IFF it means I can actually purchase a card.

This doesn't make me angry, and I don't think it should make you angry either.


I got mine after a 6 months wait on EVGA.com. Worth the wait. Best of luck


The e-Waste part is what should collectively anger us, but I'm glad you're able to buy your card.


I'm personally angry that this whole crypto ponzi scheme has gotten so big. That miners are producing e-Waste is the least of its environmental impact.


The amount of e-waste seems like worrying about the trash created from discarded plastic bottles of windshield washer fluid as the environmental impact of cars.


Has anybody written about the opportunity cost to society of technological resources going to crypto mining instead of to consumers, creators, and scientists? I'd be interested in reading such an analysis of cost/benefit of crypto vs. creation with the limited supply of hardware and electricity.


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randomhodler84, have you heard the phrase "last man holding the bag?" https://en.wikipedia.org/wiki/Bagholder This crypt ponzi scheme turned the natural progression of itself into a meme that reinforces itself. But GME is at $180, so you could be right. Stupidity could yet win and our future could be doomed to feed an ever increasing amount of resources into accounting. I hope it's just mania and we can go back to regular low energy databases to keep track of funds.


Yes, and also yes, it is a meme. Money itself is just a meme, we just don’t all agree to its definition. Bitcoin as a meme is self reinforcing, incentivizing meme, with so many self defense mechanisms — it’s crazy. Highly contagious too! Groundbreaking and game changing in its very existence. What I wonder about constantly “is it the greatest meme”? Bitcoin consumes the lives and speech patterns of its advocates far stronger than any religion. It’s easy from the outside to say “that’s not rational”. Can we ever go back to less?

Argument: money is a meme. Bitcoin could be the strongest meme ever, as demonstrated by its consumption of energy, a proxy for human perceived value. Arguing over energy is just arguing over human preference.


Not to mention the massive amount of electrical power consumed to perform the calculations.


You aren't joking!

From March 2018:

Today, a half-megawatt mine, Miehe says, “is nothing.” The commercial miners now pouring into the valley are building sites with tens of thousands of servers and electrical loads of as much as 30 megawatts, or enough to power a neighborhood of 13,000 homes. And in the arms race that cryptocurrency mining has become, even these operations will soon be considered small-scale.

For people clamoring for renewable energy, this is an obscene amount of energy needed to do a single task - mine bitcoin. Which should make it even more obscene that all of that energy is being used for what? The benefit of a few people. Staggering to think how common this is and the article even states a 30 megawatt system is small compared to some of the other sites that are out there.

https://www.politico.com/magazine/story/2018/03/09/bitcoin-m...


What about the electricity cost for powering the card. Doesn’t that outweigh the e-waste part by a significant margin?

Just because a card can’t be used by gamers doesn’t mean the card must be tossed, there are plenty of non-gaming uses such as AI. You’ll probably see an aftermarket for both types of cards.

Also, like regular graphics cards, newer versions are highly prized so one might say that graphics cards as an industry is already all about e-waste. Unless you’d like to buy my Radeon 9800 or my GTX 1070? They’re still perfectly good for gaming… except everybody wants the new RTX ray tracing etc.


> Also, like regular graphics cards, newer versions are highly prized so one might say that graphics cards as an industry is already all about e-waste. Unless you’d like to buy my Radeon 9800 or my GTX 1070? They’re still perfectly good for gaming… except everybody wants the new RTX ray tracing etc.

This is highly inaccurate, particularly on the used market. People want cards that can handle whatever games they play within their budget. A lot of older cards run tons of games quite well still, especially if you accept lower framerates / resolutions.

RTX in particular isn't actually that coveted by gamers from what I've seen. It's seen as a nice-to-have at best.


I sold a very used GTX 1070 on eBay for $325 only three months ago.


>Unless you’d like to buy my Radeon 9800 or my GTX 1070? They’re still perfectly good for gaming… except everybody wants the new RTX ray tracing etc.

Or to run higher resolutions, or to play flight simulator at reasonable refresh rates, etc etc.


Proof of work makes me angry. I have a difficult time getting too upset over any attempt to curtail it.


I’m not sure it curtails it rather than just generating new card types that can only mine coins and then are garbage


there's no such thing as a "mining-only" card, they are still good for compute tasks like grid compute.

what you are looking at is a future that is very, very bright for BOINC and folding@home scores.

the cards will never be worthless, if nothing else someone will buy them up for 25 bucks and store them until the (inevitable) next mining crisis, and any reasonable miner is going to chose 25 bucks versus having to pay to dispose of them properly (ahahah, sorry, we all know if it comes to that they're going in the nearest creek).

anyway you get the point though, the value is never going to actual zero, people will buy them for development work, for grid compute, or just as a bet on the next mining crisis. A hundred bucks for a card is better than nothing.


Being angry / outraged / upset is somewhat newer on HN.

Not discounting it, but I tend to be more interested in the . well . interesting conversations and questions then to go down the angry / upset / outraged path.

The no video out cards used in mining are already out of gamers hands. If they throw them away (they won't - existing product is working fine) they would no need to buy non-gaming product. Finally, I think you underestimate the value of the existing product, if they did want to resell into gaming market they would probably find success.


I don't like Nvidia's approach for other reasons (mostly 'cause market segmentation raises prices in the end imo). But I'm pretty sure miners very price oriented. They'd sell rather than trash whatever cards they have. And it seems unlikely they'd be using any unsellable cards since those are energy inefficient.

There's a shortage of Nvidia card/chips after all.

Edit: Now I read the article, this is literally only being added to new cards and with a warning.


Right - old cards will still work. And they would DEF sell 1,000 cards at $500/card even if that's a fraction of retail.


...Why would you toss a perfectly working piece of equipment that brings you profit? If anything, there is a second hand market for mining cards for those who want to set up a mining farm for cheaper with a bit more risk.


Meanwhile, Nvidia doesn't allow you to use your graphics card in a datacenter/machine learning setup. You need a special license for that.

https://www.datacenterdynamics.com/en/news/nvidia-updates-ge...

So let's not pretend that Nvidia is acting in the interest of their clients at all times.


One could argue this is the exact same thing: protecting their long-time customers from a small number of big customers (datacenters) that can afford to dramatically out-price their gamer customers temporarily, but might disappear (if they develop their own hardware?) not too long from now.


I think it's more that Nvidia knows datacenter customers have the money to pay a premium for "datacenter grade" products.


Isn't that kind of the point? If consumers and enterprises were competing for the same product, we would probably see a similar situation as we are with consumers and miners.


We would also see higher prices for consumers, since Nvidia would need to crank up higher profit margin a bit on their RTX cards to make the same average profit per chip sold without their high margin Quadro cards going to enterprise.


I don't think this is "recognizing customers", I think this is just sectioning markets. I'd dreading Nvidia crippling deep learning for all those not paying X more dollars (as the situation already is for server farms).

Long term, the aim has to be selling cards by usage rather than by cost of production (obvious with the aim of prices higher than the cost of production by different amounts). How many people like Adobe's creative suite? Student software versus professional software, etc.


> I'd dreading Nvidia crippling deep learning for all those not paying X more dollars (as the situation already is for server farms).

This already changed years ago when NVIDIA removed the last non-crippled double and half precision GPUs from their product lineup. The cheapest GPU you can buy for ML now is the titan v, which was $3000 at launch.


I'm only planning at this point - so I don't know but am very interested. I see the RTX 3080 reviewed as the most cost effective chip you can get for deep learning. I have the impression a lot of research is moving to lower precision also.

https://timdettmers.com/2020/09/07/which-gpu-for-deep-learni...


They have been going the other way recently: Titan V ($3000) -> Titan RTX ($2500) -> RTX 3090 ($1500). The 3090 beats the Titan RTX in double precision and is close to 2x in single precision.


Scientific calculation need double but ML don't need double, isn't it?


Def doing it for themselves, I see it in this case as customer base preservation. Most of their other approaches have tried to move users off their lower end products. This time they are trying to preserve lower end product availability (smart).


Nvidia isn't doing it for their customers, it's to reduce the aftermarket price drop next time crypto drops.


I guess the issue is, let's say you're doing something in CUDA, and the program uses $FOO, something commonly used by miners. Never mind that you're not mining any kind of cryptocurrency, the card or driver will decide that because you did $FOO, you're mining and gimp your work, or, let's say that they doubled down further, shut it down completely.


Yep, this is designed products for specific markets that are currently being untapped.

It's allows for a premium charge on crypto-enabled cards while still capturing the consumer market. It's a great solution.


> Crypto folks come and go Do they more than gamers? Complaints about miners buying all the graphics cards have been going on for years now


I thought the miner cards were cheaper. They are set up for mining and don't have video out.


If we didn’t have such a dire chip shortage I would be upset on principle, but I see this as a move that’s supposed to help long time customers get a hand at a Graphics card at a reasonable price. Once mining will ebb off, those customers are unlikely to keep buying Nvidia products so it’s entirely understandable why they would do this. Also, it’s not like on iOS where the company whitelists apps, this is a very specific blacklisting.


"If we didn’t have such a dire X I would be upset on principle, but I see this as a move that’s supposed to help ..."

What worth is a principle if you don't still have it when it get challenged? Then it's just a opinion, which is fine by itself and it's ok to change opinion, smart people do it all the time. But don't call it a principle.

Unlikely that mining will disappear because NVIDIA limits a specific algoritm/client software/however the limit is implemented. It will, like most "limit for your self-protection" systems, eventually be broken. Miners are already not afraid of picking apart the components they are using, so neither software nor hardware is safe.


I think your criticism is valid, but I don’t think it’s sensible to adhere to principles in a black and white way. For me, the minor restriction put in place by Nvidia is the lesser evil when you consider that they could just as well sell out to the miners and drastically increase their margins. In fact, I think it’s a very sympathetic move. I don’t think “it will be broken” is a good argument, because the intent displayed by Nvidia does matter.


Their intent is to limit what people can do with their hardware. That strikes me as almost morally wrong. I tell the computer what to do. It doesn't tell me what to do.

I think cryptocurrency is a scam and I'll be glad if/when it goes away and graphics cards become cheap again. However, I will never support hardware manufacturers infringing on the idea of general purpose computing for the sake of their business model.

If they want gamers to get more graphics cards then make so many graphics cards that everyone will be able to afford them. Don't try to artificially limit what the hardware can do.


>If they want gamers to get more graphics cards then make so many graphics cards that everyone will be able to afford them. Don't try to artificially limit what the hardware can do.

If there are poor people why don't they print more money? But seriously, I addressed this in my reply: there is an ongoing chip shortage in the industry (besides the fact that it may not make sense to scale a production line for a demand surge).


If it suddenly became wildly profitable to buy all of the bread and rice and any form of carbohydrate from food manufacturers and grocery stores and burn it in a field, would it still be morally wrong for food producers to figure out a way to cripple the utility of their food products by making them unburnable? Is there some capitalist principle or moral principle of the free market that overrides all other human needs and values?

What is the principle you are defending and at what point does it become less important than other principles?


If the choice was between restricting food - i.e making it less profitable to burn, to make it more available to the hungry and letting food be free and the hungry starve, then that's a pick between the best of two bad options. Clearly it's better to feed people than let food be unrestricted.

In this case though the choice is between restricting hardware to give gamers more affordable GPUs. The benefit doesn't match the cost.

The principle is something like freedom or ownership. Arbitrary restrictions are bad because freedom is good. By definition arbitrary restrictions aren't needed (arbitrary) and reduce freedom (restriction).


Freedom is only good until an incentive aligns that causes harm to the long-term stability of an industry or society. Right now, people who want to create value cannot do so because a paperclip maximizer has found a way to exploit the system for its own gain. Nvidia's move, futile as it may be, aims to maintain the stability of the GPU market for professionals and consumers, the actual value producers of society. Crypto mining does not produce true value commensurate to the burden it is currently placing on all other industries that use computing power.


The economist in me can't help but state the obvious: If those other industries were doing something so much more valuable, they'd aurely be willing to pay just as much for GPUs.

Of course, it's not really the big value-producing activities getting hit here, it's gaming.


You missed the (extremely good) point that istorical is making.

The argument in this subthread has been over whether we should be mad at Nvidia on principle. For example, as capableweb puts it:

> What worth is a principle if you don't still have it when it get challenged? Then it's just a opinion, which is fine by itself and it's ok to change opinion, smart people do it all the time. But don't call it a principle.

You seemingly agreed with a "principled" reading of the situation: "That strikes me as almost morally wrong. I tell the computer what to do. It doesn't tell me what to do."

istorical is arguing, by giving an extreme case, that we don't have a consistent principle against limiting the capabilities of a product when it will benefit a customer who matters more.

After all, if we've agreed that it's morally wrong to "cripple" a product, then what worth is that principle if we abandon it during a crisis? Let the people starve! You're rightly repulsed by that idea, and so you're retreating to the position that we're just going with a cost/benefit analysis. Preventing food from being burned has a cost and a benefit. Preventing GPUs from being used for crypto has a cost and a benefit.

The thing is, this gives up the supposed moral high ground that many in this thread have tried to promote as a reason to be mad at Nvidia. From the perspective you present, it's perfectly reasonable to look at the situation and say that preventing GPUs from being used for crypto will have more benefit than cost. (I certainly think so!) There's no inconsistency you can draw out of someone weighing the various benefits and costs differently than you do.


No, I think I addressed that point directly. It is morally wrong, or against principle, in my view to do things that cause people to starve to death and to impose arbitrary limits on things. When the only possible choice is between two wrongs, letting people starve or limiting the combustibility of our food, we should pick the least-wrong of the two options - limit food combustibility in order to feed more of the starving.

This is not abandoning a principle but rather picking a higher principle to follow when two or more principles conflict. The point I was making is that we are not currently in this situation. We aren't starving people by denying them access to the latest and greatest graphics cards for cheap.


> Their intent is to limit what people can do with their hardware.

Not really. The intent is to get graphics cards in the hands of gamers and professionals, instead of in the hands of crypto miners.

That is the end goal here. If you have a better solution, of how to do this without people getting around it via reselling, ect , please suggest it.


> Not really. The intent is to get graphics cards in the hands of gamers and professionals, instead of in the hands of crypto miners.

Perhaps I'm missing something, but why doesn't nVidia just make the best cards they can, and sell them for the highest price they can? What does nVidia care if their customers are using their cards for gaming or mining?


> What does nVidia care if their customers are using their cards for gaming or mining?

Because it makes a lot of business sense to prioritize the long time gamer customer base, as opposed to the crypto market, which could disappear very quickly.

Prioritizing certain customers, that will be around in the future, makes a lot of sense.

It also helps build a gaming ecosystem. If gamers don't have graphics cards, then the gaming ecosystem as a whole suffers, and could hurt their future business.


My solution is not to do that. Make and sell the cards to the people who will buy them. If you're selling out make more and/or raise prices.


> If you're selling out make more and/or raise prices.

What if you want to raise prices only to crypto miners, and not raise them for gamers/professions, in order to support your long term customers?

There are lots of very good business reasons to provide preferential treatment to a specific customer base, and to raise prices on a different customer base.

It is called price discrimination, and is very useful.

Do you not support companies making obvious business decisions like this, with their own company, that have large benefits to their existing customer base, as well as being perfectly rational from a business perspective?

Having crypto miners subsidize an existing customer base, makes a lot of business sense, and helps out a lot of people.

And it is all done, with people making voluntary decisions with the products that they choose to sell. Don't buy the product, if you don't like it.


If you want to help long term customers send discounts to people who have bought cards before. You don't need to cripple the devices.

I don't support companies making the choice to limit their compute. I think companies should sell general purpose computers.


> send discounts to people

No, this doesn't solve the problem.

Because what they want to do is ensure that the cards are not resold to miners, and instead stay in the hands of long term customers.

> You don't need to cripple the devices

First of all, they aren't crippled for the existing customers. They are only limited, for this other use case that the company doesn't care about.

And they do need to limit that functionality, if they want to prevent those cards from being resold to crypto miners.

> I don't support companies

Then don't purchase their product, if you don't like it. That is kind of the point of all of this. They don't want you as a customer. And it is their company, that they can do what they want with.


Okay, so the end result is exactly the same for one of two groups: miners or gamers. Nvidia just gets to choose which group gets access to cards.


> Their intent is to limit what people can do with their hardware. That strikes me as almost morally wrong. I tell the computer what to do. It doesn't tell me what to do.

If you need to run millions of hashes per second then buy one of the non-LHR models. No one is forcing you to buy one of these chips and Nvidia is not taking anything away from you.

This is like saying that Intel limits what people can do with their hardware because they make both i3 and i9 chips. There is a spectrum of options to fit more people's needs.


This is different than just product segmentation or binning chips - this is hardware restricting software.

How would you feel towards Intel if they didn’t allow you to run Microsoft Office on an i3 chip because it’s a “consumer grade processor” - you have to upgrade to an i5 or higher to run “business programs”.


But that’s not what they’re doing. They’re simply limiting the hash rate. You can still run mining software, it just won’t be very good at it.


It's more like you wanting to buy an i3 that is up to spec for your games, but then Intel launches a new batch of those i3's with intentionally reduced gaming performance because it's not meant as a gaming CPU (in the eyes of Intel), please upgrade to an >= i5


> but I don’t think it’s sensible to adhere to principles in a black and white way

I agree with you, you should for sure listen to criticism against your principles, and challenge them yourself too. But if they change because "if we didn’t have such a dire X", I wouldn't call it a "principle" anymore. A principle (for me) would mean that you don't compromise on it "in emergency" but rather that it's something fundamental you believe in, without much reason in many cases.

> because the intent displayed by Nvidia does matter

Yeah, agree again that it matters, but as a gamer myself, I'm afraid it doesn't solve the problem for me. I want to be able to buy graphic cards myself too, and these "fixes" from NVIDIA looks (to me) like posturing without actually try to address the core problem (low supply). I'd love for them to come up with a real solution, that doesn't try to decide how people use their computers, even though I don't want to mine anything myself.


> What worth is a principle if you don't still have it when it get challenged?

Huh? To me, refusing to even acknowledge or entertain criticism for one’s principles is one of the worst things I can imagine. Principles ought to be routinely subjected to criticism, no different than scientific theories.


> refusing to even acknowledge or entertain criticism

I'm not advocating for you not listen to criticism aimed towards your principle. But if your principle gets put to the test and you abandon it, it's no longer something you fundamentally agree on, it was some "light belief" that you had.


Replace “principle” with “scientific theory.” Why shouldn’t principles be subject to tests and criticism?


If it were due to new facts and information, sure, but a lot of time the "new" principles appear to be self-interest biases manifesting.

Also, if your principles are likely to change quickly, it's probable that they haven't been thought through very thoroughly to begin with. It's not like you have to wait for situations to actually arise to consider them.


In the same way that a scientific theory was meaningless if it failed a test, a principle was meaningless if it needed to be adjusted when actually put to use.


Superseded scientific theories aren’t all “meaningless.” Newton’s laws of motion are superseded, but they aren’t meaningless, and you presumably wouldn’t say that scientists who updated their beliefs in the face of new evidence and explanations were doing anything wrong.


You’re right: “meaningless” was a heavy-handed attempt at continuing the parallel on my part. And sure, they weren’t doing anything wrong, but they fundamentally were wrong in the rules they followed previously. Similarly, if you adjust a principle, you admit that it didn’t hold for you in the first place.

As a tangent: while the parallel to scientific theories is good on the surface, it does lump in this idea that there’s a universal set of correct principles. Isn’t that just philosophy, then? Logical arguments about which principles are sound & universal. Maybe the lesson is to pick principles from the battle-tested ones rather than trying to develop your own.


This is nonsense. Principles should adapt to the context they're applied in. In principle I'm against big government intervention into our personal lives, but you bet your ass I'm in favour of lockdowns when thousands of lives are at stake. I'm not going to let thousands of my compatriots die out of principle.


This is just imprecise statement of principle. It's more like you're against the government intervening unless they're credibly doing it to save lives. If someone discovered how to turn a microwave into a nuclear bomb, presumably you'd support government intervention to collect all the microwaves, even if they had to intervene a lot in our lives. Likewise, you support government intervention to reduce covid deaths, etc.


Sure, you could just say that your “principles” are simply the entire exact sequence of actions you take in your life. That way you could by definition never change or violate your principles.

But usually people use “principle” to refer to a relatively concise statement that can be applied to a large variety of situations.


I'm not familiar with any definition of the word principle that includes the idea of "concise".

Principle as I'm using it here is a moral belief or guide. It's less a description of what you do and more an explanation for why you do what you do.


I just mean that it must be more concise than a lookup table from every possible situational input to the recommended output. The same is implied by the term “explanation.”


A principle is a moral heuristic so you don't have to scan to root of your moral argument tree on every moral question. As a heuristic, it attempts to compress the moral space down and will naturally have exceptions.

As a compressed form of your moral judgment, it is also useful for you to quickly communicate your position on the moral space, and it is up to participants in social interactions to decide whether or not someone is good at this moral judgment compression.

For instance, I have a principle not to lie in general. Most social participants know that this does not constrain me from lying in specific situations. After repeated interactions they can tell whether this principle of mine is held in a manner that's useful to them.

The same principle also allows me to quickly judge situations that require me to lie. Is it okay for me to tell this person that their house is painted poorly? Well, I have this anti-lie principle so that pulls me toward "yes". I might have other principles that pull me in other directions.

Of course you can treat principles as immutable moral rods. This presumably has some value to you. In general, people do not act in this manner, however.


I think your loose definition of “principle” does not meet many others’: it’s definitely intended to be stricter than a heuristic.

Of course even though you can have relaxed principles, e.g. “I usually don’t lie” vs. “I don’t lie,” I think the point here is that if you believe or preach a particular “principle,” but then adjust it for yourself when it’s convenient (for example a “just this once” scenario), it was never a principle to begin with.


Actually, observationally I believe my definition of principle to be far more accurate. People self-report principles as being far more immutable than they behave like.

I have not yet met someone who rigidly adheres to theirs. Perhaps if I had met the Dalai Lama but nearly everyone else will find that the moral space is so fraught that they cannot adequately compress it into immutable laws.

Usually, should one demand such adherence one would find one met with accusations of “looking at the world in black and white” and “lacking nuance”.

Of course I don’t really intend to change your mind, but I do intend to transmit what I have observed.


> What worth is a principle if you don't still have it when it get challenged?

The realities of life make most principles less finite than one would hope. If Nvidia doesn't want to rebrand as a crypto-hardware company, they're going to take action so their products and brand match _their principles_.


How big is each of your principles (in terms of information complexity) that they cover significant enough number of all possible conditions and circumstances?


I’m sure plenty of people would agree to an absolute “I don’t steal” principle—one that covers a pretty significant number of conditions & circumstances-and yet not go back to the register when they accidentally walked out of the grocery store with something, or compromise it more significantly under stress of hunger. In this case, one could argue “I don’t steal” was never a principle they actually held.


What is the business case for prioritising casual non-tech customer over bulk order specialist customer?


The casual customer will still be buying GPUs 10 years from now.

The bulk order GPU miners will stop ordering GPUs the minute mining becomes unprofitable. With proof-of-stake and ASICs on the horizon, this could happen rather abruptly.

When miners are done with GPUs, they're going to unload them on the secondary market. The used GPU market is going to be flooded with GPUs that have been overclocked and run with the demanding synthetic workloads 24/7, which is going to create a high failure rate. This is going to sour a lot of people who buy those used mining cards and experience failures later.

In short: They're gaining goodwill with the long term customers at the expense of the short-term customers. This is fine, because the short-term customers will disappear soon and the long-term customers can consume all of their production anyway.


And it is a pretty common complaint that companies sacrifice long-term interest for short term concerns. It is interesting to see a company apparently intentionally make the opposite decision (and have people still complain).


Isn't this true of any and every decision? There will always be people with different opinions, so when a decision is made, those on the "losing" side of that decision will complain.


Actually GPUs used for mining are typically undervolted to keep power costs down, and by running them 24/7 there is less thermal expansion and contraction so they’re not expected to fail at higher rates than other GPUs.

Source: I used to mine ETH years ago on used AMD GPUs when that was still profitable. From perusing mining forums this is still standard practice. I eventually sold all the GPUs and all of them worked flawlessly.


Doesn't really matter. Running a card 100% 24/7 is still harder on it that gaming a couple hours per day.

GPUs are relatively reliable, but fans less so. The failures are usually an early death of the fan, which can't be replaced without strapping something else to the shroud with zip ties or watercooling it.

Miners aren't usually impacted because the failures happen after several years. It's the downstream buyers who lose out and then associate the brand with premature failure.


This - plus if all the new GPUs are going into ETH miners rather than gaming rigs, what incentive will game developers have to target new features or optimize for them?


This doesn't really make sense to me. What would the "casual customer" do if nvidia didn't introduce this segmentation? Would this completely halt the gaming industry such that 10 years from now no one would even consider buying a GPU? I don't believe that.

Also, if they're able to produce both consumer GPUs and miner GPUs to meet both demands, what's stopping them from doing it now? Is it not worth their while at current prices, so bumping the miner GPU prince by a significant amount would change that? Why not just increases prices as it is? It seems to me that the actual price charged by amd and nvidia isn't that outrageous, it's just that the cards are bought well in advance and possibly scalped later.


Nvidia does not want to hike the prices because last time they did this in the same circumstances they lost a lot of goodwill.


They're also instantly selling every single GPU they can produce either way, so there's no downside.


> I am pretty sure my next GPU is going to be AMD due to this behavior by Nvidia.

I was thinking about buying NVIDIA for the next GPU based on performance numbers alone.

However, against it there's:

1) Terrible Linux support(and history). This is specially important now that most of Steam's library runs on Linux without issues. It was eye-opening to see Cyberpunk running almost perfectly on DAY ONE with the same performance as Windows. In the case of AMD, with open source drivers.

2)Control freak shenanigans (see also: this thread). This is doing nothing to address the GPU shortage. It's just dishonest market segmentation.

3)Their completely unacceptable behavior regarding reviews. They were punishing reviewers that didn't place enough emphasis in ray tracing. They would be blacklisted just by saying it's not important (which I happen to agree with). They handled the situation horribly.


4) Crippling the ability to GPU passthrough (subpoint of (2), I suppose)


All I can say is that that company well deserved Linus Torvald's famous middle finger: "NVidia has been the single worst company we've ever dealt with, so NVidia F--- YOU!"

And they certainly haven't disappointed since back then.

Petty.


To give them credit when it’s due, they recently lifted this limitation.


Too late for me. I bought an AMD GPU last year.


> It was eye-opening to see Cyberpunk running almost perfectly on DAY ONE with the same performance as Windows.

I'm looking at Cyberpunk right now (because it is on sale) and Steam says it is windows only. Most of my Steam library doesn't work on linux, what are you running differently? I'm only just getting back into games after a long hiatus.


Windows-only games can run on the Linux version of Steam using a feature built into the app called Steam Play, which allows games to be run on unsupported platforms using compatibility layers. Steam comes bundled with the Proton compatibility tool, a fork of Wine maintained by Valve. It has very high compatibility, as long as you aren't looking to play competitive multiplayer titles.

Here's a community maintained compatibility list: https://www.protondb.com/


Thanks!!!! I found the option. I've heard great things about proton just didn't realize I had to flip a switch.


You might want to look into GloriousEggroll, it tends to have better support for media and such.

https://github.com/GloriousEggroll/proton-ge-custom/wiki


And just proving why I love Hacker News. I'm going to test proton out a bit then I'll check this out. I appreciate all the links and help


Pretty much the only non-native games I can not run on my Linux computer are the ones that incorporate anticheat detection. I just use Proton, as it is built in to Steam. Origin games do cause some headaches, but usually because of the origin client, not because of the game. Examples of "heavier" games that run fine for me at highest settings (radeon 580): subnautica, tomb rader, mass effect (andromeda), alyx, population one.


1) I have NVidia RTX 2060 in my Linux laptop (Lenovo Legion) and NVidia RTX 3070 in my Linux Ryzen desktop.

Previously had 1060 in Intel Linux desktop.

Zero issues.


I'm on the same boat, however, it's a bit unclear if parent is complaining [also] about their open source support. Their antagonistic position towards open source (AFAIK there's no comparison to AMD<>Nvidia open source drives) is a big issue for me.


> about their open source support.

Which support?

They have an official closed-source driver. That's what they support.

Parent is complaining that when they run an unsupported third-party driver, it doesn't work as well as the actually supported driver.

I think these distinctions are important, becaues NVIDIA is not telling anyone that they have (1) an open source driver, and (2) that this driver is well supported.

Their supported driver works great.

OTOH AMD does have an open-source driver that they support. In my experience, this driver works much worse than NVIDIA's proprietary driver. You can't use AMD GPUs for compute, etc.

At the end what this means is that users currently have to make a choice. Do you want a GPU driver that works well, or a GPU driver that's open source?

I don't like to have to make this choice, and every individual weight these values differently.


> I think these distinctions are important, becaues NVIDIA is not telling anyone that they have (1) an open source driver, and (2) that this driver is well supported.

this is not correct. this is an extract from an nvidia presentation:

> We'll report up-to-the-minute developments on NVIDIA's status and activities, and possibly (depending on last-minute developments) a few future plans and directions, regarding our contributions to Linux kernel; supporting Nouveau (the open source kernel driver for NVIDIA GPUs, that is in the Linux kernel), including signed firmware behavior, documentation, and patches; and NVIDIA kernel drivers.

Now, even putting this aside, the situation is not so black-and-white.

I wasn't able to boot Ubuntu with my latest Nvidia card. The closed-source driver can work perfectly, but it doesn't boot a Ubuntu image. I don't remember the details, but I think rebuilding the image with closed-source drivers didn't produce a functioning system, and if memory serves me well, I had to go as far as booting with another card.

Therefore, a closed-source only approach does actively damage the open source world in a concrete way.

Second, the nv driver story (obfuscating the code) is really deplorable, and there's no excuse for being explicitly antagonistic.

All in all, I think that being fiercely closed-source (they'd be good friends with the GNOME devs...) in a open source world, can't avoid doing concrete damage.


> this is an extract from an nvidia presentation:

Where do they say that they provide official support for Nouveau ?

They contribute patches to it. They contribute patches to a lot of open source projects. There is a big difference between contributing a patch, and "officially supporting" a project.


The driver you are using is a BLOB that comes from closed source. Many people who use Linux are against that, and would rather have open source drivers (which I think nvidia used to have but discontinued?).


At some point, someone has to take action against harmful behavior, right? In the last few years, we've seen tons extremely problematic behavior arise out of well-principled technology (all of social media, cryptocurrency, etc). Groups of people say "When will we do something?!?!?!", and then, when something is done, other people say "But the principle of ___!".

Sometime, someone has to do something about problematic behavior. The US government isn't going to do anything about it (as is evidenced by reality), but private companies are more than welcome to shape their products to match that company's intended vision for their product. Twitter didn't want fascist rants, Nvidia doesn't want all of their cards to be hoarded by crypto miners.


Do you really believe Nvidia is being an enforcer here to "take action against harmful behavior"? It's just price discrimination. They saw they were leaving money on the table. Unless they thought it a huge PR win to do it, it's probably not much different in motivation than the previous thing with them segmenting out datacenter use.


> Do you really believe Nvidia is being an enforcer here to "take action against harmful behavior"?

Nvidia has deemed crypto mining harmful to their brand and product and have taken action against it, so yes I do believe that.

> It's just price discrimination

And?


As a gamer, I'd much rather they take miner's money for miner's uses and leave me able to play games in my spare time.


I can't believe this is so downvoted. So I, a gaming consumer, have to compete with bots every release because there's so much money in accommodating miner demand for the same cards? That's ridiculous


It’s how I feel about getting a ps5, scalpers grab your all the inventory and I refuse to buy one from them so here I am just given up on a next gen consolfor the near future


No, that's arbitrage.


Not quite. Arbitrage implies it's not the same market.


Is that a fancy word for scalping?


No, scalping is a loaded word for reselling.

This whole situation, and especially the anger at other market participants from people like you, is totally ridiculous. We know how markets work. NVidia is pricing their units at far below market value. What did you expect? Next you'll complain that water is wet and that the wind blows.

NVidia could solve this problem immediately by correctly pricing their units. If they want to, they can even have a conditional rebate--or make special individualized offers--to subsidize targeted buyers who they believe are "legitimate" gamers.

But instead they insist on continuing to mis-price their products. Shortages are the inevitable result.


> We know how markets work

Badly. They work badly.

> But instead they insist on continuing to mis-price their products

They are not mis-priced, they are already a pretty hefty buy. If the prices were to increase even further, _then_ it would be mis-priced, as no-one needs to spend this much on a videocard to play videogames. The fact that gamers have to compete with miners (for whom it's an investment) and AI researchers (for whom it's a job tool) does nothing to justify the purchase for the higher price


No, they work very well. You just don't like it because other people are willing to pay more than you are.

> They are not mis-priced

They are mis-priced. The market value is much higher than MSRP, which you can see on e.g. eBay. There is nothing to justify here, it is simply an objective fact they are mis-priced.


They are mispriced as far as gaming equipment goes. Nobody will release a 2000 dollar game console because nobody would buy it. However, release a 2000 dollar game card that only those willing to mine with it for 6 months can afford, and you don't have a gaming market for long.


I woke up early back on launch day in October 2020 to buy a 3080 when they said it would be available. Couldn't get one. Periodically I'd check newegg and other sites to see if the shortage is gone. Nope, on 05/18 it's still out of stock everywhere. Throwing $750 on a piece of hardware to play games shouldn't be this horrendous of an experience. I for one am glad nVidia is doing something about it.


They should just raise the prices. Supply and demand, you know?


I don't think PC gaming should require you to be part of the top 10% in order to fairly price computer hardware between mostly foreign miners buying scores of chips whose primary contribution to society is using 129 TW hours annually and individual users buying a single GPU.

As a selfish American I would rather we arrange for GPUs to be useless to a small number of users buying a large number of GPUS for mining in order for the much larger group of users to be able to afford one GPU.

If this strategy is successful and AMD doesn't follow suit nvidia GPUs will basically be the only ones most people can afford and if mining collapses years later AMD wont have any marketshare left to lose in the consumer space.

The only other way to still get their hardware in front of people who they want to keep a relationship going with will be via privileging OEMs over selling individual GPUs but in fact people are actually buying machines for the GPU and turning over the remaining GPU less machine in the consumer market.

As it stands the whole situation is broken for the only buyers that are sure to be here in 10 years and I would rather it move towards sanity sooner rather than later.


Who knows about 10 years in the future; Perhaps crypto '10x's, and gamers move to cloud platforms. If the prices should be raised, after some years, the added margin will add competitors and increase the efficiency, thus making chips cheaper in the long-term. Anyhow, makes more sense to advocate for silicon subsidies, which helps with national geopolitics as well.


Cloud gaming suffers from inherent issues having to do with latency that are unsolvable. If you place a lot of expensive machines very close to users its not economical and if you put the machines further away from users the latency sucks.

It's likely that PC gaming will spend the next 40 years the same way it spent the last 40 years. It's also immaterial anyway. We need to not kill the PC gaming industry this decade not try to bring it back from the dead like lazarus with tech that may never come through. The same thing is true of using tax payer money to incentivize production of silicon. It may make sense for a number of reasons but its not a solution to I can't buy a GPU now. Making it uneconomical for miners to use gamer cards solves the issue this year. Meanwhile we can subsidize production of silicon in the states and work going "to the cloud" with the gaming industry if it makes sense. It's not an either or.


I don't want cloud gaming. A NES still works fourty years later, a cloud platform can disappear tomorrow with all your games.


Prices have been raised.

You can buy an RTX 3080 right now if you want. It's just going to cost you $2500 or so because vendors and scalpers are capturing that markup.


Sounds like Nvidia hasn't actually raised the price. They could just auction this off from their website directly and cut out the middle man.


They do sell cards on their website and they also direct users to websites of other manufacturers (like eVGA). The problem is nVidia had no protection against orders being placed by bots at the first second the cards go on sale, so it was virtually impossible for a human to order the cards, so the middle men got all the cards.

Between the high demand with gamers, scalpers with bots, and crypto farms gobbling up _graphics_ cards, the prices went up by an insane amount, and some people did pay double to get their hands on it.


I don't know with certainty, but I believe NVidia has raised prices. I base this on the prices that appear on the sites of custom system vendors. Until recently you could get a complete machine from many builders with a GPU at something close to MSRP. Now you can't. These builders (the larger ones anyhow) don't buy from scalpers, so that means the device manufactures have raise their prices.

Anyhow, that's my theory. Anyone have actual recent price lists for NVidia GPUs? Otherwise we're all just guessing.


That is essentially what they are doing, but in a way that doesn't burn their long-term customers (PC gamers). There will be crypto ready SKUs of these cards sold at a considerably higher margin.


So, you think poor people shouldn't be allowed to play games?


I haven't had a good GPU myself once in my life. I still could play plenty of older games. You're just selfish and entitled.


While I understand why you were downvoted, I think this is a good point.


My next GPU is going to be one that a) supports the features I want, and b) that I can actually go out and buy without putting hundreds or thousands of dollars into some economic parasite’s pocket. It’s not just “hard” to buy high-end GPUs right now—it’s impossible unless you make a lifestyle out of chasing them down.

If this has any effect on anybody who isn’t a crypto miner, it’s going to be to open up possibilities and/or save them money. I have trouble finding fault with that, and we’re surrounded by far more egregious erosions of our “right” to buy and use general-purpose computers.


They are not economic parasites. They are the physical manifestation of the Invisible Hand. These are people doing God's work making an efficient market. If you don't want arbitrageurs to capture that value, maybe NVidia should start pricing their products correctly so that they capture the value. This isn't rocket science.

> If this has any effect on anybody who isn’t a crypto miner, it’s going to be to open up possibilities and/or save them money. I have trouble finding fault with that, and we’re surrounded by far more egregious erosions of our “right” to buy and use general-purpose computers.

This is a wildly short-sighted take.

First they came for mobile users, and I did not speak out-- Because I like Daddy Cook telling me what math I can do.

Then they came for the cryptocurrency miners, and I did not speak out-- Because I deserve a subsidy for my video gaming habit.

Then they came for unlicensed cryptographers, and I did not speak out-- Because I have nothing to hide and if this has an effect on anybody besides them it's just going to be to make their skills more valuable.

Then they came for the debuggers-- But I still didn't speak out, because we're already surrounded by egregious erosions of our right to buy and use general-purpose computers, so what's the point, amirite?


> They are not economic parasites. They are the physical manifestation of the Invisible Hand.

Why do you (apparently) imagine these things are mutually exclusive?

> maybe NVidia should start pricing their products correctly so that they capture the value

I do happen to agree with this in principle, up to a point, and I've said as much in the past. It's easier said than done, though, especially when the scarcity is expected to be temporary and there are OEMs and retailers between you and the buyer.

Ultimately, Nvidia may feel that it makes more sense to (attempt to) cater to the steady, predictable consumer market for their products, rather than alienating those buyers in favor of crypto miners during a period when they aren't able to satisfy both. On the face of it, not having intimate insider knowledge of their business, I can't say I think it's a bad judgment call.

> This is a wildly short-sighted take.

You obviously think you're very smart and everyone around you is not nearly as smart, but you're just going to have to live with the fact that I and many others disagree with you here. And you've shown with everything after this line that continuing to discuss this tricky (and very interesting) moral question with you would be a total waste of time, so I'm not going to bother.

(But I guess there isn't much point in you trying, either, because ... well, you know.)


> Why do you (apparently) imagine these things are mutually exclusive?

An economic parasite extracts rent. Arbitrageurs add value by reducing spreads, adding liquidity, and improving allocative efficiency.

> Ultimately, Nvidia may feel that it makes more sense to (attempt to) cater to the steady, predictable consumer market for their products, rather than alienating those buyers in favor of crypto miners during a period when they aren't able to satisfy both. On the face of it, not having intimate insider knowledge of their business, I can't say I think it's a bad judgment call.

That's fine; it's their prerogative. But people should understand that it's NVidia's policies, not crypto miners, that are responsible for supply shortages in traditional retail channels and making arbitrageurs rich. The blame is entirely misplaced.

> You obviously think you're very smart and everyone around you is not nearly as smart, but you're just going to have to live with the fact that I and many others disagree with you here. And you've shown with everything after this line that continuing to discuss this tricky (and very interesting) moral question with you would be a total waste of time, so I'm not going to bother.

You're wrong about that, but you're right that I'm going to have to live with the fact that people disagree with me. Same thing goes for you.

I think it's a real stretch to call this a moral issue. But you're right that this conversation is unlikely to have a productive end. Way too many jimmies have been rustled.


> I think it's a real stretch to call this a moral issue.

After your little tribute to Niemöller there, I'm surprised you'd claim otherwise—but maybe you just find it a useful rhetorical device to use as a bludgeon in your quest for reduced spreads, added liquidity, and improved allocative efficiency. I suppose it wouldn't be the first time somebody's invoked the specter of Hitler and the Nazis in an argument with little or no regard for the awful human weight of the events they're alluding to.


Sorry, I wasn't clear about what I was referring to: GPU resales are not a moral issue. Restrictions on computation very much are.

Maybe I misunderstood what you were calling a moral issue. If you were referring to the restrictions on computation, then I agree.


> Then they came for the cryptocurrency miners, and I did not speak out-- Because I deserve a subsidy for my video gaming habit.

Are you suggesting that anyone who buys something and then doesn't use it to generate the maximum profit possible for themselves is being subsidized by someone else?

That doesn't even remotely make sense.

What's your stake in cryptocurrency?


Not at all. Simply: If the market value of an item is $2500, and I demand the ability to buy it at $750, I am demanding that someone, somewhere subsidizes my purchase.


The keyword that you left out is "now". In one year (hopefully), supply will match demand and you'll be able to purchase it at MSRP. At that point, you're subsidizing your own purchase by applying patience.


They are indeed economic parasites. Much like landlords, they are not doing any useful work, not contributing to society in any way, but sitting on their ass expecting to collect a free paycheck while other people work.

Miners are parasites.


It's honestly pretty surprising to me to see how many people on here are supporting this move. That's not what I would expect, I would expect people on HN to object to this move on principle.

Maybe my prediction in where most HN commenters stand in principle on this issue is wrong, or just maybe, this is a rare example of a time when the principle (hardware should be free to run at their max capability, not deliberately hamstrung, etc. etc. - to me, this kind of ties in with the "software should be free" principle) conflicts with a more immediate desire to play the latest video games (lol).

Harder to take the principled approach when you've been waiting "like 11 whole months for the 3080 I mean seriously dude".


The free market and personal liberty aren't magical tools that when combined produce a functional system. From the outside the GPU market is probably unfixably broken. Capacity to manufacture is an extremely expensive investment that will be wasted if cryptomining on GPUs becomes merely somewhat less effective. Meanwhile GPUs are being driven out of the price range where their natural market can actually afford them.

Imagine if it were so profitable to haul small trailers of goods around for amazon that basic passenger cars went from 20k to 70k and nobody was interested in expanding car manufacturing to meet the new demand because the capacity might well go to waste next year. It would be untenable.

If car manufacturers started selling cars that were deliberately shitty at towing but still worked great for moving people from A to B I think they can be forgiven.

We want freedom to use our hardware but we need to have a functional market as well and this one has been broken for years with no sure end date.


No principle exists in a vacuum. In practice, all are balanced against other principles.

Let's run with your "software should be free" as an example. Licenses like the GPL family apparently work against that, in that they add restrictions. But so-called "viral" licenses aim to maximize a different kind of freedom for a larger number of less powerful players. Some call this hypocritical, but it's just balancing principles while taking into account outcomes.

Another way to put it is that principles for most aren't religious commandments; they're mental tools to push the world toward a set of preferred results.


I think it's hard to take the principled approach when you see that the result of sticking to principles results in large organizations enriching themselves while ignoring the myriad externalities.

At least, it makes you re-evaluate your principles.


What, externalities like energy waste? If that's the case, why target ETH, isn't ETH going to Proof of Stake soon?[1] I admit I don't really know if what Nvidia is targeting applies to both pre-merge and post-merge ETH

[1] https://news.ycombinator.com/item?id=27194586


> isn't ETH going to Proof of Stake soon?

Ethereum is going proof of stake soon for a few years now.


Without price discrimination, everyday users end up paying more for a given product while for-profit entities would pay less.

When a company releases a product, they price it according to how much profit they want to make per unit sold. Market segmentation allows them to sell their product at a lower margin to lower income users and shift much of that profit burden to corporate customers who can easily afford it.

Where I take issue with this practice is when manufacturers start suing users who modify their own hardware to enable features that they didn't pay the manufacturer for. Tesla selling heated seats as a software upgrade is a good example. It's fine if they want to build the hardware into every Tesla and only enable it for users that pay for it, but suing customers who modify their vehicle to turn on the heated seats on their own is way out of line.

I don't think Nvidia is going too far here, unless they start suing customers who try to write custom drivers that bypass the limitation.


Why does Nvidia even want to sell to low-priced buyers, if they are saturating their manufacturing capacity with the high-priced buyers alone?


Because those price-sensitive buyers (PC gamers) are far more likely to be loyal customers down the road than crypto miners, who will immediately stop buying GPUs as soon as mining stops being profitable again.

Nvidia wants to give PC gamers a reason to stay on "Team Green" by making it easier for them to get a card at a reasonable price during this perfect storm of limited silicon availability and insane crypto mining demand.

I actually think that this particular move is more about rate limiting purchases intended for crypto mining than it is about putting miners in a different market segment.


> I would expect people on HN to object to this move on principle.

I cannot think of any principle that would cause me to object to this.

Blind fealty to general purpose computing here conflicts with the very real world impact on non-crypto consumers. If we're being utilitarian, it seems to me that it would be obvious that this is a good move.


I mean, why are non-crypto consumers better than crypto ones from a utilitarian POV? (I play video games and dislike crypto - I'm just asking). I suppose that people do things other than gaming with 3080s, because I would be hard pressed to make a convincing argument that gaming is somehow so much more valuable of a hobby than mining crypto that it's worth the hit to general purpose computing to specifically ban crypto


I think the missing factor here is that mining groups are sort of like neo-feudalists.

If crypto ends up becoming the de facto world currency, then mining groups that are already wealthy purchasing all available stock of GPUs to mine and further enrich themselves is sort of like if 70% of land was owned by wealthy nobles, and they used the profits from their land ownership to purchase all new land-producing/discovering capital and therefore become the owners of all new land coming onto the market. It's like the worst nightmare of those worried about income inequality. And it just so happens to affect retail consumers who just want "land" for other purposes than becoming richer.


> 70% of land was owned by wealthy nobles, and they used the profits from their land ownership to purchase all new land-producing/discovering capital and therefore become the owners of all new land coming onto the market

So, basically, like REITs? It's funny that graphics card feature sets are what generate moral outrage when a feudal regression happening in real time before our very eyes in regards to the basic necessities of life.


It's a lot easier to cripple graphics cards than it is to do anything political


Content creators, specialty industrial systems, R&D researchers, and designers are core customers of nVidia's products too.

They frankly contribute to society in a way that speculators never will.


I use my GPU to render visualizations for my work and for educational YouTube videos. It's not just gaming, but even then, belittling gaming is kind of silly. Entertainment has value too, and that entertainment supports lots of actual people doing actual work.

And crypto itself is the biggest hit to general purpose computing outside of the walled garden world of phones. What computing can be done if crypto speculation consumes all available computing power?


I think you're reading too much into people's reactions. I think this is a good move for Nvidia in the medium and long run. Gaming is the stated purpose of these cards; hashing is an unexpected and temporary phenomenon for them. Ethereum is moving away from PoW, and more regulation is undoubtedly coming to crypto, with its environmental cost likely a compelling bullet point. Why wouldn't they try to get back to their core business of selling GPUs to gamers?


It's honestly pretty surprising to me to see how many people on here are supporting this move.

Unfortunately, I'm not surprised. Support for general purpose computing and user freedom has fallen substantially in the last several years. Look at iOS, where many geeks are happy to have a megacorporation tell you what you're allowed to run on "your" hardware.


And I'm not surprised support for it has fallen. The people who support general purpose computing never explain why it's important. They just state the principle as if it's self-evident, but clearly it isn't to a lot of people.

But to be fair to them, maybe they are not stating the reasons because they worry that voicing their fears would be a self-fulfilling prophecy.


How do you feel about laser printers and color photocopiers refusing to photocopy government currency?


What, you mean because they are legally obligated to refuse to do so?


"Hardware should be available" seems like the kind of axiom that FOSS people would support, especially when the reason for lack of availability is a crypto mining profit motive.


It's been a shift I've noticed over the last ~15(?) years of browsing these and similar forums - as they become more well-known and frequented by the general public, the opinions start to lose nuance and aren't as tightly coupled to the principles from which the forum was borne.

Similar example - government regulation of tech: if, 15 years ago, you were to tell a community of Hackers that the EU was planning a massive law to regulate the way you can process data that internet browsers voluntarily send to your server, there would be principled outrage. But, speak ill of GDPR on today's HN, and you'll quickly find yourself inundated with anti-tech talking points.

The filter bubble doesn't last forever :)


Not really.

Principles are borne of small communities because small communities can afford to be principles.

Before software ate the world, the impact that damaging actors had was much more limited. A few computers would get a few viruses here and there but that was it.

We live a world where computers have been integrated into the fabric of society, and where system risks do not have easy, principled answers.

And if principles don't adapt and negotiate with reality, its defenders will just be isolated from the rest of society which can't afford to lose a lot of other things, which include other, possibly more important, principles.

What changed with regards to GDPR was that 15 years ago there weren't Facebooks, Amazons, and other megacorps that had the personal data of 30% of the world's population available for their use. Tech monopolies encroached different product areas.

What changed in 15 years is that we grew up, we acquired power, we became more integrated into society and as such the risk profiles change. You either do, or you become irrelevant like many of the Free Software activists who were a vanguard back then and whose opinion nowadays matters little.


> Similar example - government regulation of tech: if, 15 years ago, you were to tell a community of Hackers that the EU was planning a massive law to regulate the way you can process data that internet browsers voluntarily send to your server, there would be principled outrage. But, speak ill of GDPR on today's HN, and you'll quickly find yourself inundated with anti-tech talking points.

GDPR is an actual improvement. Silicon Valley overstepped their boundaries and got punished accordingly. Perhaps insufficiently punished, even.


Or perhaps those of us who've been here since Fidonet are weary of nuance-free libertarianism. Shrug


> It's honestly pretty surprising to me to see how many people on here are supporting this move. That's not what I would expect, I would expect people on HN to object to this move on principle.

Sounds like free speech. People were all for unrestricted free speech... until the right wing started using it.


Cryptomining angers me on a deep level far more than the nascent attempts of Nvidia to segment it. I think they're doing an incompetent job of diminishing the value of it, but at least they're making an effort to do so.

Cryptominers are a far greater threat to general purpose computing than Nvidia. They ought to be compelled by law to purchase carbon credits for their mining, to offset the environmental destruction their petty "get rich quick" efforts have inflicted on the planet, enforced through Coinbase et al. and with noncompliant (offshore) exchange/wash platforms blocked and their users prosecuted through national laws and international agreements. Cryptominers and the malware they've created makes a very strong argument for walled gardens with enforcement and review of applications, simply because the vast majority of PC users are worse than useless at preventing misuse of general purpose Windows.

I also think this proves Apple right on integrating the GPU on-die with the CPU, and not selling the CPU standalone at all, because Apple — unlike Nvidia and AMD — is having no such trouble with miners on their general computing platform. This issue is for whatever reason restricted to DIY PCs, and cryptomining will be the end of DIY PCs if this keeps up.

(Perhaps you meant "DIY computing" rather than "general purpose computing"? I definitely see Nvidia's steps as interfering in the build-your-own computing market, but if it keeps the DIY computing market from dying off in favor of Apple, isn't that a desirable outcome?)


I'm all for it. My system with a 3080 had a hardware issue so I needed to swap it for a new one. It took me weeks of shenanigans with the vendor because they couldn't get a new card to send me a new system. And that was after a month's wait to get the original system, also due to supply constraints. I have actual work to do, and am fine with NVidia making it harder for make-money-fast potlatchers if that means I can actually buy their product to do useful work.


AIB partners are selling a significant number of GPUs directly to miners, bypassing the distribution chain, without warranty, at about 30% higher prices than the distributors pay.

So just FYI this largely comes down to your vendor making a decision that they'd rather sell a card to a miner than service your warranty request. They have cards, just not for you.

https://videocardz.com/newz/chinese-gpu-miners-are-now-bulk-...

> We have heard many stories where miners in China are queuing up to NVIDIA board partner factories in hopes to buy graphics cards in bulk. Some AIBs agree to sell cards directly to them because those clients pay more (usually 1/3 more than any distributor) and they get limited or no warranty at all.


I bought an MSI desktop with a 3080 specifically for gaming. I didn't even know you could mine ethereum with a 3080 until after buying it. I've been running a miner using power from my solar cells when I'm not gaming. I don't deserve to have my card crippled. Fuck NVidia.

EDIT: Ok, I bothered to read the article. This is a hardware measure for new cards, not existing cards.


It is unfortunate, but it is less unfortunate than the behavior of crypto miners. Freedom is great when people aren't using their freedom to infringe on other people's freedom.


How is someone mining on GPUs they bought themselves infringing on your freedom, pray tell?


The extra power usage is destroying our planet all for someone to try and make a quick buck, and causing shortages of GPUs during a pandemic where mental health from entertainment like gaming is valuable and stops people from going outside and getting/spreading the virus. The incentives for crypto all are f'ed up right now. The ETH PoS switch can't come soon enough.


> The ETH PoS switch can't come soon enough.

Profitability doesn't go down considerably with other cryptos that are efficient on 30 series cards: https://whattomine.com/coins?aq_380=0&aq_fury=0&aq_470=0&aq_... (see the 'Rev. $ Profit' column)


So earning income is less important than letting people play video games? Let's just say I'm unconvinced by this argument.


I think it's quite fair to say earning income is less important than allowing people to achieve happiness and video games are a pretty well known way to accomplish that.


I unequivocally disagree with this statement - "happiness" achieved by video games is superficial, without real meaning. They are thrilling endeavors and fill time effectively, but they are absolutely secondary to the absolute positive of actually deriving income. I seriously can't believe that anyone would seriously argue a distraction is worth more than actual income.


What does mining crytprocurrency have to do with earning income? The two are completely mutually exclusive, in fact mining is a great example of making money without doing any useful work


Securing the network is useful work.


Would you say the same if you could mine bitcoin by buying up as much medicine as you could, and burning it?

Because if you think the above behavior isn't "earning income" clearly better than "play video games", then your argument falls completely flat.


this is a total false equivalence. you’re really comparing computing hashes to buying medicine and destroying it?


>Air pollution accounts for 1 in 8 deaths worldwide - approximately 7 million deaths in 2012, according to new data from the World Health Organization (WHO). The findings, released in late March, doubled previous estimates from just a few years ago in 2008. WHO now characterizes air pollution as “the world’s largest single environmental health risk.”

https://www.niehs.nih.gov/research/programs/geh/geh_newslett...


This is beyond a stretch. Fascinating that this is how people are rationalizing being dismissive of cryptos.


I'm comparing taking a useful resource and deliberately destroying it in order to "prove work".

It's a very accurate comparison.


It's actually worse, climate change is going to kill all of us, medicine unavailability will only kill some of us.


I don't know any gamers who can game 24/7, 7 days a week with multiple GPUs.

Mining and gaming aren't even close to comparable in power usage.


Mining crytprocurrency isn't "earning" income. Doing work is warning income. Crypto miners are about as useful as landlords - they shouldn't exist and don't deserve any money


What if you're only mining with renewables?

And I'd actually like to see a study on the positive mental health benefit of gaming, because I'm skeptical.

Also the idea that you need a primo GPU in order to game is a bit silly. And if you're the kind of person that absolutely needs the best graphics in order to enjoy gaming, please see my point no. 2 about mental health.


> What if you're only mining with renewables?

The issue isn't the "we're using renewable energy - see, this doesn't make things worse." It also doesn't make things better. Whats more, its increasing the consumption of energy which is at the core of the problem.

It would have been even better to push that renewable energy out onto the grid (and also not increase the consumption of power for crypto mining).

Switching all new power consumption to renewable doesn't improve things because the baseline of non-renewable is still there. We need to reduce existing and switch existing to renewable.

I suspect a bit of Parkinson's law is in place with energy. https://en.wikipedia.org/wiki/Parkinson%27s_law -- The key is to stop making it worse (by mining crypto and trying to justify it with "but its from renewable").


I mine on renewables and with 3000 series gpus. I didn’t want to do any of this, I ended up here because my energy retailer decided to tax me for exporting too much energy to the grid. So short of earthing the electricity, my solution was to burn it up in mining, and improve my solar roi.

The 3000 series gpus are the most efficient hashes/watt. So actually by disabling this, you are driving people towards less efficient/worse for the environment ASICS machines.

Yes I batteried my home, and use my solar on everything I can first... there is still excess... especially at peak.

Pretty sure this dismantled most of your argument.


You are the exception of all exceptions. What percentage of GPUs being purchased for the purposes of crypto are for reasons like yours vs being bought by already wealthy conglomerates and mining groups to further enrich the new crypto multi-millionaire/billionaire class.


Aren’t wealthy just buying giant TH asic machines?

The gpus are good exactly because they are efficient but if you didn’t care about power consumption, ASICS are more profitable (in terms of cost of setup vs return from mining).

The primary reason I went with gpus, is because I can shut them off based on solar excess in 100w increments. So if I’m 200w in excess, turn 2 cards on. 300w - 3 cards etc.


They're not. Asics are more a function of the coin being mined. Namely, if asics are out and competitive, they generally replace gpus altogether as they're both more powerful and efficient. See btc, where gpu mining is completely worthless. Eth on the other hand has no notable asic out AFAIK, and requires gpu mining. Eth miners, regardless of scale, thus require gpus.


btc mining isn't worthless - just you don't directly mine. You sell your compute to the pools.


This is a bit of a two wrongs don't make a right: the fact that your energy retailer is taxing you doesn't (by itself) make it 'right' to use that energy for mining.

Ofcourse I totally understand you do as you do, on an individual basis, but that just stresses the point that this can only be regulated at the group/population level.


Not really. I’m not sure I even believe the “grids weren’t designed for feed in” bs. Wires don’t care where the electrons come from, and they have no problem with me drawing the same load I feed in... so something doesn’t add up. But I’m no electrician... just cry a little at 7-10kw excess that i either have to pay to feed in or earth.

I don’t see anything I’m doing as a wrong. Literally just wasted energy... why not convert it to $?


https://www.landisgyr.com/ezine-article/making-way-two-way-p...

> In the old days, when power companies were the only generators in town, control devices like regulators, capacitors or relays were designed to assume that power flowed in only one direction. “If they saw power flowing in the other direction, they typically tripped or misbehaved, causing customer outages or power quality issues,” Kuloor says. This tendency has prompted many utilities to update such equipment with reverse-power-flow logic or, in the case of mechanical devices that have no software, replace devices altogether.

Not all local grids are prepared for that.

Additionally, there's the signaling of power supply that generators do between each other.

https://en.wikipedia.org/wiki/Utility_frequency#Frequency_an...

https://solarbuildermag.com/policy/grid-saturation-lessons-f...

The different parts of the grid will use fluctuations in the frequency of the grid to indicate if they've got too much power, or can't supply enough.

This can get more complicated with single house putting power back in that they're matching the frequency, but not controlling it as such. If there is too much supply from single house sources, it can cause the frequency of the grid to vary too much and potentially damage the power plant generators.

When this becomes exaggerated - all the houses start producing more power because the sun came out (or the opposite that it clouds over), this can increase the costs for power.

You've also got the Hawaii problem. The Hawaii grid doesn't have the luxury of shipping its power to the next state over.

https://pv-magazine-usa.com/2020/02/05/how-to-solve-hawaiis-...

https://www.hakaimagazine.com/features/the-hot-mess-of-hawai...

https://en.wikipedia.org/wiki/Solar_power_in_Hawaii

https://blogs.scientificamerican.com/plugged-in/3-reasons-ha...

There are times when the rooftop solar in Hawaii exceeded the total demand for power. This meant there was too much power in the wires and that generators needed to shut down (or get into problems with pollution and inefficient combustion).

> The grid can only accept as much power as the island is consuming. Juario must mix and match different sized generators to balance what solar rooftops are producing while ensuring that the generators have enough “spinning reserve”—room to throttle up and down to handle those grid surprises. The Maui Electric chief operator must also keep the generators running hot to prevent inefficient combustion from sending dirtier exhaust up the stacks and violating the air quality rules that protect residents’ health.

https://spectrum.ieee.org/energy/renewables/can-smarter-sola... has a neat map. There were sections of Hawaii where solar was supplying 250% of the demand in that area.

https://www.vox.com/energy-and-environment/2018/11/30/178686... is another useful bit to read. "electrical grid oversupply" is the term to search.


This all feels like a buffering problem. Can power companies not just buy big batteries... you wouldn't even need that many, just enough to signal generators to do the right thing.

(Also no idea all the gadgets in-between house and generators, but assuming all the gadgets can handle load going in and out)


Part of that storage problem is what Tesla and Australia did. https://www.greentechmedia.com/articles/read/australia-picks...

And there are other approaches to power storage. Thermal power storage is popular / useful with large solar installations. Hydro dams associated with a reservoir often have pumped storage where they can pump water back into the reservoir and then use it when its needed.

The signaling and frequency matching is still an issue.

I recall a company I worked at in California had two sets of generators. They had a diesel emergency generator for the data center and also a set of natural gas generators to cut down on power costs (when the price went high). The issue with the natural gas ones is that they needed something else to provide the utility frequency, something about them not being stable/consistent on their own.

Rooftop systems have the possibility / likelihood of also destabilizing the frequency in the grid. https://en.wikipedia.org/wiki/Rooftop_photovoltaic_power_sta...

> An electrical power system containing a 10% contribution from PV stations would require a 2.5% increase in load frequency control (LFC) capacity over a conventional system an issue which may be countered by using synchronverters in the DC/AC-circuit of the PV system. The break-even cost for PV power generation was in 1996 found to be relatively high for contribution levels of less than 10%. While higher proportions of PV power generation give lower break-even costs, economic and LFC considerations impose an upper limit of about 10% on PV contributions to the overall power systems.

There's a reference to that at https://www.worldcat.org/title/ieee-transactions-on-energy-c... - which I don't have access to to quote from.

The key point to this is that if solar power is increased, then the grid as a whole needs to also increase its power to get back in control of the load frequency. That is likely what you're seeing. By itself, this storage isn't sufficient for answering that issue. Ideally, the solar systems would have their own local batteries and respond as part of a smart grid to contribute according to the load frequency. ... But that costs more money for the installation and consumers are hesitant to do that.

https://www.energy-storage.news/news/tesla-powerwalls-hooked...

https://www.provisionsolar.com/general/grid-outages-and-the-...


I think your last challenges the concept of who exactly is the consumer?

Thanks for the thoughtful reply!


Very true. If you're pushing power out onto the grid, you're no longer a consumer but rather a producer and there are other issues that come into play.

Twenty, thirty years ago the amount of power from rooftop installations being pushed out onto the grid was minimal compared to the size of the grid and it wasn't an issue.

If you had an energy producer that was producing 10% of the power and doing significant swings in its production without participating on the wholesale energy market (and not signaling those swings)... the regulators would have shut them down.

But when you've got 10,000 people each contributing 0.001% of the grid power (and all having the same swings)... and not participating on the wholesale market and not signaling their swings, that can be disruptive (and damaging).

https://learn.pjm.com/electricity-basics/market-for-electric... is also a good read and https://www.pjm.com/markets-and-operations.aspx is the live market for that part of the grid.


Out of curiosity, has the mining yet payed for the rig/card?


No where near. But if you factor the tax I was paying (I.e assuming I didn’t earth it). It will reach cost neutral in a year and be returning margin after that.

They are increasing this tax as well shortly... so it will get better.


It's not anyone's responsibility to make things "better" for you or anyone else.

The person I was replying to said that mining was destroying the planet. This doesn't seem particularly true to me if you're mining on renewables.


If one's motivation for using green energy is to make the environment not go to crap as fast, then using green energy to mine crypto doesn't help anything and the use of green energy is nothing but a fig leaf.

If one wants to mine crypto, then do it as cheaply as possible instead. It really doesn't matter what the source of energy is. The entire system of crypto mining is inherently about who can use the energy the cheapest. Whats more, if someone gets energy cheaper it forces others to consume more power too.

If crypto is mined, it really doesn't matter what it uses power it - mining crypto is still increased consumption of power. Someone else is going to have to use non-green energy to do whatever they're going to do.


Hm, no, not really.

Energy production is not zero-sum with some fixed amount of non-renewables.

If I install solar on my house, I'm not forcing anyone else to use non-renewables. If I then use that solar to mine crypto, I'm... still not forcing anyone to use more non-renewables.


Aren't most miners in China and use coal power? Seems like it is contributing to destroying the planet then.


Yes, but you'll note that this is an argument I never made.


> increasing the consumption of energy which is at the core of the problem.

How is consuming energy a problem? There is a blob of infinite energy on the sky and practically all of it is wasted.


Oversimplifications like this are a fantastic way to avoid the core issues. Harvesting said ball of energy isn't free. Solar tech and near future power infra is certainly not at the maturity level for this, especially when the consumer is a power and semiconductor black hole of demand.


I'm no longer free to live on a planet that has been destroyed by climate change. Crptocurrency mining uses more energy than Argentina.


According to this[1] website, bitcoin mining is only around 0.6% of the worlds power consumption. It is certainly not anywhere near to being the main cause of global warming.

[1]https://cbeci.org/cbeci/comparisons


I suspect this definition issue is partially due to cultural issues - freedom means different things in different parts of the world. Outside of the US societal freedom and the freedom from pain are valued over the individualistic freedom valued in the US.

I don't think either view is absolutely correct after having lived in a few different' societies - but there are valid points to support a view where individual freedom to act isn't the primary freedom to protect (i.e. protecting the freedom for everyone to live a healthy life better enables all individuals to achieve a greater degree of freedom as a society than being individually focused).

I really think there's a philosophical disagreement on what freedom is at the core of a lot of the libertarian vs. socialist arguments.


> Freedom is great when people aren't using their freedom to infringe on other people's freedom.

Other people driving up the price on something you want is not "[infringing] on other people's freedom". It's an inconvenience, but you're still completely free to buy at the inflated price.


People hate competition. It’s not like the big tech is made out of bricks. The small timer says competing users of GPUs are evil, the Apple lawyer bullshits on how they can’t even allow mentions of alternative payment gateways less the security gods become angry.


Could the price ever reach a point where you would say it infringes on the general public's freedom to purchase? Or are all prices simply greater and greater inconveniences?


No. There is no constitution of any nation which says you are owed the freedom to be guaranteed that a luxury good (like gaming graphics cards) will be available when you feel like buying it. Market scarcity of luxury goods has no infringement on anyone's freedom. Just like market availability of luxury cars or gold jewelry in no way infringes on anyone's freedom.


I see where our difference in opinion lies now. I don't put graphics cards into the same category as gold jewellery. There are entire industries of independent contractors who rely on GPUs to remain competitive, such as VFX and motion graphics artists. If GPUs suddenly cost $10,000 each, it means only a small percentage of the population can afford to break into those industries. That is, people who were once free to enter those industries no longer are. Isn't that an infringement on freedom?


the beauty is that there's no constitution of any nation that says miners are entitled to cheap gaming GPUs for their farms either.

if NVIDIA wants to segment you out of the gaming market, that is their right as well. Free market cuts both ways - you are free to start up your own company and do it your way.


I’m not sure how crypto mining infringes on anyone’s freedom?


Could you explain how you see crypto miners as infringing on other's freedoms?

I certainly agree with your first sentence, and think NVIDIA crippling hash rates on their GPUs is the lesser of two evils - just because I think crypto miners are a) wasting massive amounts of electricity and b) messing up prices in the GPU market.


Let's see... crypto-miners hoarding GPUs by the tens, hundreds, even, driving up GPU prices for the non-miner. Also, when the cycle busts, hoards of cheap, abused mining cards flood the second-hand market, making it difficult for companies to sell fresh cards, and also possibly hurting the company's reputation when an abused mined-on GPU fails prematurely.

Miners can whine, all they want, but something needs to happen to hamper their greed for virtual money.


Jeez I know all that and support this move by NVIDIA. Fuck the miners for all I care, I thought I said as much in my original post.

I just don't think they're 'infringing on my freedoms' or whatever.


You can still buy unlocked GPUs. What is wrong with creating a new product people want? I want a gaming GPU that is powerful and reasonably priced and actually available to be purchased. Unless Nvidia does this, how else can they provide that product for me?


And unless Nvidia does this, what does their market look like in 5 or 10 years?

People won't wait around not upgrading their systems forever because the price of their cards has been bid up by crypto miners to unaffordable levels.

At some point Nvidia simply won't have a consumer market anymore. They'll let go of a market-leading position in favour of the crypto miners.

What are they going to do when the crypto mining goes away?


I see no problem with it. I could see the argument that crypto is an existential threat to Nvidias business. If they lose a generation of PC gamers they risk that loss compounding years down the road as they and their children lean toward console. If they _want_ to serve those PC gamers first over crypto then they need to find ways to keep them as their customers.


It's market segmentation, and it's not a new strategy.

The market is bimodal. There's the crypto miners and there's the gamers. Right now, gamers are getting starved out and middlemen are pocketing the surplus selling gaming cards to crypto miners.

Nvidia want to capture more of that surplus for themselves, while also taking money from the gamers. Satisfy both markets with different products at different prices, prices that leave less money on the table.


Given there is just more demand than supply. With this model they are still sitting customers who are willing to pay less for the same good. If there wasn't such a tight supply constraint right now, this strategy would make 100% sense to me. Right now they should just auction the cards off from their website. Keep all the margin and get the cards to the buyer for whom the goods are worth the most


a succinct, correct explanation imo. if your angry, it should be at crypto before anything else. a largely useless tech that has lots of negative externalities, like this one.


Indeed. I buy fast computers because they are fun toys. What if I want to play around with password cracking on my gaming machine? Is the hardware going to detect that I am running hash algorithms and throttle it? Is this a game reserved for state-level players behind closed doors?


> What if I want to play around with password cracking on my gaming machine?

Currently, you'd have to pay $2500 or more to buy a scalped card anyway unless you get really, really lucky with something like the Newegg Shuffle.

If they break the mining incentive, they're going to drop the price of these cards and also make them more available.

I'd rather have a hashrate limited card that I can actually buy at a reasonable price than a fully unlocked card that can't be obtained for anything less than 3X MSRP.


Well, the article does say that it will only be in a future revision of cards. I already bought a new 3070 from a friend for a mere 10% over the (already ludicrous) MSRP.

What about when ETH moves to PoS or the crypto market crashes? The concern is that this feels more like a ratchet in a bad direction rather than a temporary fix.


I find the energy used in crypto mining to be a crime against humanity and support reasonable efforts to curtail it. Until we price in the externalities of using fossil fuel energy, no one should be wasting energy on this scale for such a spectacularly nonessential purpose.


Nonsense for you maybe, would you call flight travel, cruises crimes against humanity?


Air travel and cruises provide unique and tangible benefits.


Same could be said for anything, it's all subjective


It's not a whole new level. An aspect of Quadro differentiation has, since ages ago, been based on selectively disabling features that the consumer gpus silicon was capable of. It's the same strategy here.

This makes sense to Nvidia because it creates a segment differentiation and will allow them to charge more for the higher hash rate parts.


I dunno, the freedom fighter in me thinks this is a terrible idea, but my rationale says that it doesn't make much of a difference. Nvidia's hash rate limitation is really their way of telling miners that they aren't interested in their business. I suppose I could see Nvidia taking a hard left turn here and stopping acceleration for other things (like ML and physics calculations), but why would they? CudNN and PhysX are already such massive investments to them that throwing it out would break comparability with several games/apps and outrage the professional/consumer market.

So given how few choices Nvidia has, I think I trust them to call this. At the very least, it should reduce their hardware demand to tolerable levels, so they can focus on securing better silicon rather than simply more.


It looks like this is tied to the hardware, so miners should look to avoid a particular manufacturing run of a SKU.

Personally, I'm ok with this approach as it's tied to the hardware, and can be researched by everyone ahead of time to avoid "Model X, manufactured from Y to Z dates". Hopefully this can be determined from the SKU + serial number easily by a human reading the serial number.

It's not a software driver change nerfing the card remotely, which I would be absolutely against. It appears it could be eventually reverse engineered and bypassed, which I'm also ok with.

It's also not immediate e-waste as miners will avoid it anyway, and gamers can just use the card as normal regardless of the manufacturing run -- this isn't hardware that lacks video ports.


> Does this behavior anger anyone else on a deep level? I get that its hard to buy GPUs right now, but this seems like such an attack on general purpose computing.

That's a weird hill to die on, since they're explicitly marketing and selling these cards with "LHR" branding and NOT discontinuing other non-LHR product lines. These are cards specifically for folks who don't use the features which are throttled.

If they were doing this across the board, that's one thing. But they're not. If it means lower costs or increased availability for consumers who want them, that's a win.

Moreover, they're not disabling anything, they're throttling. One or two GPUs are hardly going to mint you a fortune in ETH in the first place. The difference in hash rates is not affecting anyone who meaningfully cares about general purpose computing. Nobody is switching their industrial mining rig over to play Dota. They've throttled an extremely niche use case which makes the cards more broadly available to the public instead of a very specific single-purpose industry: that hardly seems like an attack on general purpose computing.


In an abstract sense, yes.

But crypto with proof of work is such a huge energy wasting uselessness that any action against them is welcome. Besides if they don't, then their old markets will disappear because they can't get cards anymore and start doing other things, and then when crypto is made illegal or crashes for good, they suddenly lose their whole market.


But this isn't an action "against" mining: this is just so they can use DRM techniques to build the computational equivalent of a network neutrality violation to price discriminate a high value use case to their CMP HX line.


Don’t these hardware manufacturers already deliberately reduce the performance of some chips just so they can sell them for cheaper without actually developing and manufacturing an additional line of chips (i.e. price discrimination)? This doesn’t seem much different.


De-rated units are usually chips that didn't perform as well as they could have. A variety of manufacturing discrepancies (defects) can cause excess heat dissipation or non-functional cores.

Selecting what a given unit should be rated to (clocked at or enabled to do) is often known as 'binning', and is common throughout the electronics industry.


> De-rated units are usually chips that didn't perform as well as they could have

"usually" is not correct here. They are sometimes chips that didn't perform as well, but usually they are actually higher-tier chips that are artificially locked down to perform at lower levels.

AMD had over 80% of their Zen1 chips and over 70% of their Zen2 chiplets coming off the line with 8 fully functional cores. Yet they probably have 60% of their demand being 6-core or 12-core parts (2x 6-core chiplets). What do they do? Lock off 2 cores and sell 8-core parts as 6-core parts and 12-core parts.

It is nice that they have something to do with the chips that actually are broken, but most of them are just gimped for price discrimination and market segmentation.

https://wccftech.com/amd-zen-yields-80-all-8-cores-functiona...

https://www.guru3d.com/news-story/amd-zen-2-production-yield...

Same for the Phenom II X3 - almost all of those really had 4 functional cores and you could usually turn them back on. Why were they being sold as 3-cores? Price discrimination and market segmentation.

Or for a more recent example - the rumors of an impending 3080 Ti launch in January turned out to be true! Someone got a picture of the actual chips, with a big line through the 3080 Ti part number, re-marked with the part number for a 3090. NVIDIA decided to cancel the 3080 Ti launch, and sell the parts as 3090 - and those parts were actually 3090 tier parts that were being marked down and sold as 3080 Tis.

https://videocardz.com/newz/nvidia-quietly-remarking-geforce...

It is a reality in this industry that you are constantly being sold artificially gimped parts, because price discrimination is the financially optimal strategy. It's better to charge a price-insensitive customer way more, and to still have high-volume parts for price-sensitive customers, than to have insufficient inventory to supply price-sensitive customers, or to price everything "fairly" and lose the price-sensitive customers due to prices being too high. But due to the way yields and binning work (you don't want to have high-volume SKUs that are difficult to produce - you want high yields even in your top SKUs) you have the most parts available in the bins that have the lowest volume, and the lowest amount of (broken) parts available in the lower bins that you sell the most of.


That's called binning but it's not as bad as it seems and it reduces waste. The way chips are manufactured all the high end and lower end variants come from the same process, but the company can only guarantee the performance of the higher binned ones.


Price discrimination is evil. Perfect discrimination leads to products having zero economic worth to the consumer.


It’s easy to think of it that way. But here’s another way to think about it: a manufacturer has two assembly lines for two different products which are sold at two price points. As they scale up production, they realize that they could realize significant economies of scale if they combine their assembly lines and only produce the more expensive product, but then apply an “artificial” limitation to half of those products so they can still sell to both markets. Is it somehow wrong for them to offer the same two product lines to the same two markets, but just with a more efficient manufacturing process?


The situation fascinates me. It's one heck of an expression of capitalist market forces. Gamers can't get computational capacity for their graphics, because the market-clearing price for computing is the value of the cryptocurrency that that GPU could be mining instead. Every pixel you calculate has an opportunity cost of that calculation's worth in cryptocurrency.

Nvidia wants to serve gamers over miners, presumably to establish and maintain brand loyalty for future purchases. If they can't increase supply, the only other way is to reduce miner demand. That's their goal; this limitation is just a technical detail of implementing that. Hardware segmenting to serve different markets has been a thing forever and I don't see any reason to call this out as any worse.

That said, I like that Nvidia and AMD are taking different approaches here. That's free market capitalism, let the invisible hand guide the outcome.


You say that, but but you might change your tune if 4 months from now you can easily buy an Nvidia card because miners stopped buying them while AMD cards are still scarce.


AMD is actually going into this full-throttle, they are not only starting production of mining cards on the same node as their gaming cards (unlike NVIDIA, where the mining cards are on a different older node that doesn't compete for wafer allocations), but they aren't even limiting mining performance on their gaming cards

https://www.tomshardware.com/news/amd-rdna-mining-graphics-c....

So if they follow through on their "no mining limiters on gaming cards" you can expect miners are going to get both the gaming and the mining cards from AMD, and that the number of wafers going to gaming cards is going to shrink.

(AMD cards already have the best value in terms of hashrate-per-dollar btw, 6700XT and 6800 are good mining cards, comparable to 3060 Ti mining performance for less money)


It angers me too, and most people are definitely getting upset with the wrong party- it is not to say crypto miners are magically devoid of guilt or that there aren't issues with scalpers, but these are all, deep down, supply issues that have sprung due to an over-reliance on Just-In-Time manufacturing. Pandemic-induced shortages merely compound what was already a problem.


> Hardware manufactures already segment features between consumer and busness grade parts that the silicon itself is capable of, such as virtualization, but restricting what algorithms one can run is a whole new level.

The silicon might also be capable of running the latest nvidia self driving ML models, yet you don’t get that just because it’s capable- you have to pay them $x so that they have the money to pay their engineers to develop those features (and pay the company directors, and shareholders, etc). It’s the same for things like the professional quadro view software - https://www.nvidia.com/en-in/design-visualization/software/q... - there’s only a compelling business case to make this software as a result of the higher margins they make on quadro cards.


I couldn't care less about crypto mining and I think, right now at least, it's doing more harm than good. But I'm against putting artificial restrictions on general computing, whether or not I agree on the application. So, yes, I think it actually should be illegal for NVidia to do this.


Yes, it sucks, but the tragedy of the commons is real[0]. Not that I defend NVs solution, but I think the problem is worse overall.

[0]https://en.wikipedia.org/wiki/Tragedy_of_the_commons


"This reduced hash rate only applies to newly manufactured cards with the LHR identifier and not to cards already purchased."

I think you got that, but just to be super clear that is the case.

No need to be angry as far as I understand that's how chips are made nowadays. You can have wildly different consumer offerings on the same die.

You buy 3 inflated balloons, seller takes five of them and while you are watching pops 2. "Did you really have to do that"? In chip manufacturing this makes a lot of sense. Your anger is basically towards a manufacturing process and naming not the end product. And the process is just highly optimized while naming keeps thing pretty transparent - it wouldn't look good if they tried to sell it as a completely new card.


No I don't care.


Given that they are struggling to ramp up production to meet demand this seems like a perfectly acceptable move when they are essentially unable to serve their most loyal customers.

The problem really is that cryptominers will happily scale their purchases arbitrarily high


> Does this behavior anger anyone else on a deep level?

Since you're asking about feelings: Nope. I'm not a miner, and I believe the whole crypto thing is a pyramid scheme that is basically gambling in another form, so I'm not angered. In fact, I'm glad: I hope it keeps uninformed people from spending huge sums on bogus "get rich quick" schemes, just like the 2008 housing market was enabled by people who didn't understand balloon mortgages, and slimy lenders that exploited them. Now if I could only convince my friends that are losing their shirts in DOGE + Robinhood to cut their losses and put that money into actual investments.


> this seems like such an attack on general purpose computing.

An attack on general purpose computing that only affects the people who've completely fucked up the GPU market in service of one narrow, non-graphics use case?

Cool story, bro.


Not at all, part of the reason is crypto miners buy up all the supplies and gamers can’t buy them. Then when crypto prices fall they dump old cards back onto the market. It hurts both sides


Good luck getting a next gen AMD GPU for any reasonable price if NVidia successfully segments away the miners and AMD doesn't.


If I were a chip manufacturer like NVDA, I would pursue the crypto market with a special chips for each different crypto, to move the crypto market off their gamer line.

Then let the crypto people pay 6x for 4x performance using half the power, e.g, meanwhile using that income to fund the research for the the 3nm, 2nm, 1nm production lines.


I remember reading about this earlier in the year. What may not be apparent from this article is that Nvida is also selling GPU cards specifically designed for miners.

https://www.nvidia.com/en-us/cmp/


No matter if you think of what's happening here, NVidia is clearly not the bad guys in this story.


Nvidia sells toys for gamers. Expensive toys, sure. But crypto is for people wanting to convert graphics cards into serious money. Nvidia would probably want to extract a majority of the profits of such customers if it can, because it's doing the majority of the work.


Yes. Everyone disagreeing with you is just making excuses for manufacturers to turn customers into serfs.


They have separate product lines for mining. I don't understand the complaint. NVIDIA probably gets a ton of complaints about miners "stealing" all of the GPU cards.

I think it's perfectly reasonable for them segregate the capabilities for their varying consumers.


I don't care. I have a 3080 I paid a pretty penny for so that I could play some games in high resolution and do personal machine learning projects. Between the cryto miners and scalpers I don't care what happens to those folks.


While I wholeheartedly agree that nvidia should do this, what bothers me is that they take functionality away without adding anything in or lowering the price. They are selling a "technically" inferior SKU for the same price.


> While I wholeheartedly agree that nvidia should do this, but bothers me is that they take functionality away without adding anything in or lowering the price.

Vendors are selling cards at 10-50% above MSRP and scalpers are selling them at 200-300% of MSRP precisely because they're usable for mining.

By breaking the mining incentive, they are dropping prices for consumers. Considerably.


They aren't really "selling" the unlocked RTX 3080, though. They go for $2500 on ebay, and you're essentially winning a lottery if you manage to get one at the advertised $800 price. In practice acquiring a restricted RTX 3080 is going to be a lot cheaper than acquiring an unrestricted one.


Due to supply constraints, retail does not represent the true price. 3080s are generally going for $3k on eBay right now. Their move is allowing the price of the card to LOWER back to retail price.


I work in SaaS. Availability is a key feature.

A service with more features that I can't use is less valuable than one with less features that I can use whenever I want.


> take functionality away without adding anything in

coincidentally they just announced official support for GPU passthrough on consumer gaming cards, very likely as an olive branch to prosumers to calm the outrage over this issue.


> Does this behavior anger anyone else on a deep level?

Nah. I shed no tears for the miners. They're in it for profit and their profit is not my problem. Nothing about their business is "general purpose computing."


Is there any reason to sell GPUs for consumers to have in their computers anymore? The crypto folks seem more than happy to take all the GPUs at a premium, and consumers can use laptop integrated GPUs


Meh. It's pretty consistent with Nvidia's behavior. If you don't like being Nvidia's bitch then buy AMD and use open source drivers.

Sorry for the strong wording but if people didn't tolerate this crap from GPU vendors that would solve a lot of problems everyone has. You mention attacks on personal computing, the main reason everyone is stuck with vendor provided Android system software on their phones is because the closed GPU drivers are heavily coupled with it. Otherwise lots of people would have dumped it when they crippled the file API and started creating problems for termux. Because of this there's no real competition for iOS so Apple and Google can pretty much get away with whatever they want.


I generally against to restrict what can be calculated, but now I have mixed feelings in this horrible market situation. I wish RTX 4000 series don't implement this restriction.


What if they do it effectively and AMD GPU end up twice as expensive because gamers and miners have to compete for cards and the miners want 30 and you want 1.


Yep, this enrages me. Deliberately introducing faults into a product to make it less appealing to one market segment in a desperate attempt to cover for their supply chain failure. Stinks to high heaven.

In addition the detection is not magic (it can't be) so there are going to be false positives. Can't wait until my games start dropping frames 30 minutes in because the driver decided my competitive FPS was actually mining crypto.

Imagine a headline like "Charmin introduces toilet paper that cannot be hoarded, to prevent shortages," and it's because the TP biodegrades after 6 months.


GPUs have been doing this forever. This is exactly the same as some features being enabled on quadros that don’t exist on RTX/GTX/GT cards. That’s (mostly) not silicon, that’s just firmware.

This isn’t covering any supply chain failures (despite what nvidia says, the number of available GPUs remains approximately fixed), it’s just more market segmentation to minimize the secondhand mining GPU market and capture more dollars.

I was also concerned about detection false positives, but as far as I can tell they’re detecting a very specific algorithm that only gets used for ETH mining - there have been no false positives that I can see. Some miners are even working around the limiter by introducing obfuscation operations, but that comes with a hashrate cost of course.


> GPUs have been doing this forever though. This is exactly the same as some features being enabled on quadros that don’t exist on RTX/GTX/GT cards.

No, I think this is the first time a GPU has been heuristically trying to detect what you're doing and self-limiting in response. How is that equivalent to features just being literally off?

There's no special "mine-crypto" instruction in the CUDA ISA.

> there have been no false positives that I can see.

How can you see that? These aren't released yet and the GTX-3060 isn't really a popular card among serious gamers that would notice.


> No, I think this is the first time a GPU has been heuristically trying to detect what you're doing and self-limiting in response

nah, remember when NVIDIA decided that Titans were now prosumer cards and would get Quadro series drivers, and then performance tripled in CAD applications once the limiters were removed?

https://wccftech.com/nvidia-titan-xp-titan-x-385-12-driver-u...

The distinction between a Quadro and a GeForce has literally always been drivers and firmware. NVIDIA would have the card look at the specific API calls being made and if it decided you were a CAD application then it'd slow itself down on GeForce cards, while running normally on Quadro.

AMD does the same thing with Radeon Pro, and Frontier Edition cards, and so on.

You literally don't understand that this has been the norm for a decade now. Miners are just crying because they're finally being asked to purchase a business segmented product for their business venture.


The 3060 has been out for a few months now, and it has the limiter. Re: your edit about noticing, I strongly disagree. Tech reviewers would LOVE to run the “limiter cripples Blender/Tensorflow/whatever” story, but that hasn’t happened. And in this market users are generally taking what they can get, so I’ve seen lots of people who would normally run 70/80/90s running 60s instead.


The existing limiter doesn't work, though. It was narrowly focused and consequently easy for miners to work around. That's why they're making this new version. There is no precise test for whether a given workload is "mining", though, so we can expect more false positives to show up as Nvidia tries to close off the myriad ways to avoid detection and miners respond by making their computation look more like traditional gaming workloads.


The number of GPUs being produced may be constant but it’s lower than desired. The issue is Nvidia worked with Samsung to fab their chips this time around and Samsung had poor yields. Nvidia should have used TSMC like AMD and Apple but they tried to use Samsung and got burned on supply. They said they will use TSMC going forward but in the meantime there are shortages.


Nvidia can't make nvidia laptops run well on Linux but they sure can cripple all their drivers, huh. That's what they're good at.


I'd be worried a lot if it were for existing products, but this is a right move in my opinion. Drastic times, drastic measures.


Naw. They're trying to recognize the pain of their consumers. And trying to do something to address it.

Better than nothing.


I felt similar anger for similar decisions. GPUs are complex pieces of hardware present in so much of our world but we are reliant on the manufacture to provide a driver to control the hardware. An open(source) driver is nice but doesn't allow you to do anything not documented, and open hardware is an nonstarter for capitalism with our weak IP laws(but hey let's protect a drawn mouse indefinitely.)

Nvidia has done things like this before and it can get worse. Imagine a future GPU where only authorized drivers have access to certain features, and I'm not talking about the difference between consumer and workstation GPUs unlocking a few obscure openGL functions in the drivers.


It does, but that the fact that the ponzy scheme that is cryptocurrency hasn't been made illegal by now should angers me even more.


That's inaccurate, a core feature of Ponzi schemes is that they require fraudulent activity, where someone is lying to participants about how much money is "theirs" and the way in which it grows.

Cryptocurrencies don't do that, the system isn't lying to you about how many whatevercoins you own.

Pyramid-scheme? Maybe. Pump-and-dump? Happens sometimes. Hugely speculative asset? Definitely.


No. Only the miners. All for this.


GPUs by definition are not general purpose computers. Remember the G in GPU stands for Graphics, not General.


That hasn't been true in a very long time. You can run arbitrary code on a GPU.


Yes you can run arbitrary code extremely inefficiently, which reinforces the point they are not general purpose by definition.


Doesn't the G in GPU stand for Crypto now?


> Does this behavior anger anyone else on a deep level?

Yes. A lot of what has angered me about the situation is that there's these claims that these companies are going to help us as consumers but aren't actually doing anything that helps us. It is just show. They know it, we know it. So stop saying you're on our side and stabbing us in the back. As an example, look at NewEgg's product shuffle. It is a clear scam and actively helps miners. Microcenter, BestBuy, Amazon, and everyone else does the same thing but NE is the worst because the bundling with useless stuff.

You want to help consumers? I have 2 models for you:

1) Create a signup list (like EVGA, but just select the number, not this list for every variant). Send out cards as they come in.

2) Only sell cards once or twice a month and in large pools (many cards in stock). This way you have a reasonable quantity of cards to hand out for the high demand instead of the small quantity that bots are always going to get to first. It should take only basic statistics to understand this. If a bot has an 80% chance of getting a product first and a consumer 20% then we need a bigger pool to draw from, not more pools (with small number of cards). More (small) pools helps the bots and harms the consumers. Larger and less frequent pools results in a larger set of consumers getting the products.

With these two models you can better fight bots and stock doesn't need to be on the shelves for long periods of time.


Context: Back in February, Nvidia also restricted cryptocurrency mining on their RTX 3060 cards. The restrictions were bypassed a month later https://news.ycombinator.com/item?id=26475596

Related HN Discussions:

Nvidia announces mining GPUs, cuts the hash rate of RTX-3060 in half https://news.ycombinator.com/item?id=26180260 (461 points, 746 comments)

Nvidia Limits RTX 3060 Hash Rate https://news.ycombinator.com/item?id=26192201 (280 points, 509 comments)

AMD refuses to limit cryptocurrency mining: We will not be blocking any workload https://news.ycombinator.com/item?id=26524387 (68 points, 53 comments)


huh, so this is why I've been seeing HDMI plugs that supposedly double the hashrate of 3060s

How is this even implemented?


A major bad point with this is when the mining cards become obsolete, they won't be able to be used as a graphics card in a computer due to it not being able to output to a display. So realistically it will decrease avaliable graphic card supply to gamers in the future who are maybe looking for a cheap used graphics card (therefore pushing people to buy a new card instead). Short term fix, long term problem.

I was thinking they could maybe get a second use in industry however they mostly buy new cards (from my limited knowledge on it).

Nvidia knows the strats to make $$$ in the long term under the guise of the good guy.


How big is the used market for graphics cards though? Common advice is to avoid buying used unless you also price in the risk that the card was used as a miner and hasn't been taken care of.

Aside from the recent drought of GPUs and pricing madness, you could buy low-end current-gen cards that could outperform higher-end previous-gen parts.


I don't have a citation for how massive the used market is, but I can tell you without a doubt that people in my circles buy used cards, and that I commonly heard it as advice to save a buck.


My most recent card purchase was used. I bought a used GTX 1070 for $230 in 2019, when the 2000-series was new. I've been happy with the price and performance; it hasn't died or anything.

> Aside from the recent drought of GPUs and pricing madness, you could buy low-end current-gen cards that could outperform higher-end previous-gen parts.

This wasn't true at the time. The high-end parts just have many multiples of the compute units of the low end cards. Nvidia 3xxx isn't 100% faster than 2xxx or 1xxx on a per-unit basis, and the x080 cards have several times the compute of the x030 or 50 parts.

Another relevant concern is GPU RAM; the lower end parts just have less RAM. Game performance completely falls over if more RAM is needed than the card has. Very large displays need a ton of GPU RAM.


Used graphics card were/are a big market (even though new cards depeciate massively when used). Usually crypto cards still last a decent amount of time (and might even have been thrashed while water cooled to keep them healthy). The price of them make up for the fact they have been ran constantly. And the price makes up for the fact of being outdated in-terms of performance. They are great for budget PC's. Many people still buy GTX 970's etc.


The used market is huge. Even before the shortage, newer used GPUs were selling for 75% or more of their new price, from my memory.


big, computer parts in general have a good second hand market


Graphics cards without display outputs are still useful, you can use them for VFIO and gpgpu workloads


What's the market for second hand GPUs for scientific computing, compared to second hand GPUs for gaming?


like anything else, worth quite a bit to the right customer, until they become functionally obsolete (f.ex: nobody really cares about Kepler hardware anymore and it's gotten quite cheap)

https://www.ebay.com/sch/i.html?_from=R40&_trksid=p2380057.m...

now, being that mining cards didn't start at $10k per card to begin with, they won't sell at $10k per card on the secondhand market, but they'll do OK.

at a hundred bucks, why wouldn't you pick one up for your folding@home rig, vs paying full freight for a card with a graphics output you'll never use?


NV sells tons of cards used for things other than mining and video output already. The mining cards can be repurposed for those use cases (compute, machine learning, etc)


This is incorrect since the onboard HDMI output can be used for that as well (or a secondary GPU).


There are tons of use cases for GPUs outside of output to a display: audio/video encoding, render farms, scientific computing.


True. I just assumed people (or most likely companies) who are doing these types of things generally will be buying the latest GPU new as they have more money to spend (and want to get a good life out of the card).


Total hardware noob here. How do they do it? Is there a particular instruction that ETH needs to be "efficient" but games can live with throttled? Or perhaps a sequence of instructions that's signature to ETH?


Going to be a fun future game of cat-and-mouse as miners figure out how to disable/bypass nvidia’s electronic countermeasures.


It doesn't need to last forever, just long enough to prevent shortages from pissing off non-mining customers.

I wouldn't be surprised if nVidia releases updates to unlock hardware after a set time period.


It'll be a good opportunity to see some nice hardware hacks, sure. But I'd guess serious miners don't really wanna deal with that shit and will just buy the miner-specific cards or use ASICs. This measure just raises the bar enough to make it a hassle.


Serious miners will go to great lengths to improve their efficiency by even a fraction of 1%. They will absolutely patch some drivers if it gets them better hashes/kwh (which it will or Nvidia wouldn't do this).


Serious miners are buying Antminers, not video cards.


Antminers are for mining Bitcoin, GPUs are mostly used for Ethereum.


https://www.coindesk.com/bitmain-antminer-e9-asic-ethereum-m...

ethereum is asic-resistant, not asic-proof. It doesn't mean you can't make ASICs, just that ASICs are <10x as efficient as an equivalent-node GPU, vs millions of times more efficient for bitcoin/etc.


Are serious miners buying supply constrained GPUs?


The reason they are supply constrained is because miners are buying most (near all?) of the available stock.


Miners are already doing hacks like this, i.e ETHlargement pill (which alters memory timings on 1080/1080Ti cards to improve ETH mining).


We’ll see a cottage industry of modders. Turning a $300 thing into a $600 thing should be a viable business.

Though I’ve seen some really sketchy mods before… can’t find it at the moment, but one involved taking a dremel to the chip to break an internal pad/link.


They previously did this with the 3060 cards, but accidently released beta drivers that unlocked the countermeasures [1]. I am sure people just start with using those drivers on the 3070/80 cards.

[1]: https://www.theverge.com/2021/3/15/22331537/nvidia-rtx-3060-...


I think I read the new cards will require a higher driver version


the new cards (and the new revisions of the old cards) won't work on the old drivers


Couldn't one just not upgrade their drivers? NVIDIA has no way of crippling an offline system.


This is for future manufactures, and it'll come out of the box disabled.


Cards that have already been sold don't matter. New cards however become worthless to miners so the demand should go down as well as the prices.

We will probably see cards with old firmware show up on eBay for a lot more money than new cards.


I understand this might come at hw level. Driver could have little or nothing to do with it.


Probably not much of a cat-and-mouse game. Once they can bypass it once, all they have to do is not update. Unless Nvidia is prepared to release new hardware revisions every time.


No new hardware revision needed. Just a new on-card BIOS requiring a newer driver with a more fine-tuned mining detection. Should be trivial for manufacturers.


Hacks that re-enable mining likely won't be showing up on tpb anytime soon! A bypass will be worth quite a bit of money for large miners that can get hold of the cards.


Scalpers benefit from it, and they have an extreme incentive to drive up demand.


Speculation having thought about this for a few minutes a few weeks ago. Given that a driver update disabled the feature, my guess is that they have certain kernels blacklisted. Really just the anti-virus equivalent of if (e.g.) Nicehash Miner, set throttle. A good way to test this would be to write a new miner and see what perf you can get.

I have the driver with it disabled and would patch diff it against a new one if I had the time, but I'm very busy with work. It would be an interesting problem of binary diffing at scale (dozens of libraries). Very interested if anyone has any insight.


From what I've read, the card detects if it has been continuously mining for 30 minutes then throttles itself.


GP's question was about _how_ it detects it has been mining. Does it have a list of processes or executable names of popular mining software? Does it perform some kind of heuristic and detect if the code it is about to execute corresponds to a hashing algorithm? I don't know the answer, I hope someone can explain it to me and GP.


nVidia has been deliberately vague about exactly what they are detecting because it would make it easy for miners to develop a workaround.

That said, Anandtech wrote about it briefly recently:

https://www.anandtech.com/show/16648/nvidia-updates-geforce-...

They surmise that there is hardware-enforcement of BIOS\Drivers via some blown eFuses.

Also they imply that nVidia does multiple checks such as whether it's running on a PCIe x1 bus (gamers would typically use x4 or more) and whether it's hooked up to a monitor. It's likely they check for other things too but they would keep it on the down-low.


I've seen HDMI plugs listed on eBay which supposedly "double the hash rate" on 3060. I figured it was some kind of scam but didn't know they were throttled.

I'm curious about how this is implemented.

I'm also somewhat skeptical about GPU makers doing this for compute in general.


Going to be fun to see cases of false positives. "Help! My FPS drops 75% after running game for 30 minutes!"


Those games are using a lot more of the gpu than just the compute functionality.


Has anyone found out if Hashcat is impacted on the cards that have this already (3060)?


I have a dumb theoretical question, but I genuinely don't understand the answer.

Why wouldn't nvidia and amd or any other card maker just keep the cards and mine all the cryptocurrency for themselves?


While having the cards is tablestakes, and newer cards can do more for less, in the end--even for Ethereum--you really still are spending more on electricity than hardware, and so you can have all the cards in the world and still not be able to mine crypto effectively. Most mining is thereby done in other places in the world where the externalities on power generation and use (clean or dirty, both) are less well tracked, with the occasional place in the US--such as the plants in NY that are being booted back up just to mine crypto--where people are actively trying to make it illegal. I would imagine a lot of the mining done in the US ends up being either to "launder" (not quite the right term) money (buying lots of power and converting it to untraceable crypto for illegal activity... kind of a reverse laundry ;P) or with "stolen" power (as is the case of a college student mining in their dorm room).


With today’s ETH prices, electricity costs are a fraction of the revenue from mining. Like, on the order of less than 10%.


That's brutal... isn't the hash difficulty supposed to automatically increase to compensate? Is it actually the case that the limiting factor on hash rate right now is how quickly Nvidia is willing to sell GPUs?!


Yes, your relative hash power does give you a smaller and smaller piece of the pie all things equal as more hardware mines the blockchain. However, the increase in the USD price of ETH and also the demand for transactions on the ETH blockchain have both gone way up (i.e. the cost for a transaction of a given size, a.k.a. "gas", measured in "gwei"), and the balance of those three factors means mining on the same card is currently much more profitable than it was in the past. Uniswaps and NFT's are large transactions and bid up the price of gas, and have been very popular as of late.


Ethash is actually more profitable when underclocking and power limiting the card for max efficiency. With cheap electricity around $0.10/kWh this can mean $0.30 a day on $7 in profit.

a 3070 with an average 60 Mh/s: https://whattomine.com/coins/151-eth-ethash?hr=60&p=120&fee=...


Ok, so now I am dying to understand how this could possibly be the case, as this isn't how the economics are supposed to work... like, according to this calculator, I could make $5 with the old graphics cards in my PC, and I live in California (where I would expect expensive power).

Like, the premise is supposed to be that if there is that much profit to be made mining, people will mine, the hash rate will skyrocket, the block production time will get too low, and the hash difficulty will rise until the profit you can make is low enough that you aren't sure if you want to do it anymore. Does the difficultly just not rise fast enough?

Or like, is this largely just because the price of Ethereum has gone up "too quickly" in the past month? If so, does this calculator take into account the incentive factor that if people actually do this the difficulty will go up, and so this $7 of profit today might be $0.50 of profit in a month, and maybe you will fail to pay off your hardware investment fast enough?

Or is there just something really weird going on in this market that I don't understand (and would love love love to learn about)... maybe it literally is just as simple as "there aren't enough graphics cards to go around, and Nvidia's disinterest in making profit in this way--even temporarily--is the strongest current limit on hashrate"?


ETH price is +500% YTD and it’s not really worth it to buy hardware to mine now because in less than a year it is expected to move to proof of stake (no more mining)


What do you mean untraceable crypto? Isn’t there a distributed ledger of transactions?


I mean vs. traceable crypto. When you mine crypto, it essentially poofs out of nothing into your hand: there is nothing to trace it "from", as it were, on the blockchain, as the electricity you paid for it isn't recorded in that ledger; so, if you want to do something illegal with money, and you need to figure out a way to control some funds that no one can work out "is you", mining crypto is a great way to do it: you pay for electricity in fiat and obtain a fundamentally unrelated pile of crypto.


Probably because it's just not their business. They don't need to confuse their objectives with bitcoin to get rich, they're doing exceptionally well without it


Then why is Elon Musk trading Bitcoins? Tesla makes more money trading Bitcoin than selling cars.

https://www.wsj.com/articles/tesla-makes-more-money-trading-...


Because Tesla's most valuable product aside from the cars is the memes.

I am not kidding. It seems a substantial proportion of TSLA buyers aren't really interested in its fundamentals but like what Elon tweets out.


I suspect this is because he’s successfully generated a cult-of-personality among fans, and crypto-communities can get pretty rabid (positively and negatively) when their chosen celebrity does anything.


Tesla's Q1 operating profit of $594M was slightly less than the sum of their $101M Bitcoin profit and the $518M regulatory credits they received[1].

[1] https://old.reddit.com/r/dataisbeautiful/comments/n0jxyt/tes...


Just because Elon Musk does something it doesn't mean it has to make sense. Tesla's shareholders can trade bitcoins themselves. They don't need Tesla to do that.


Tesla and Nvidia are entirely different from each other. Tesla's business model has been built on government subsidies, while Nvidia's business model is to sell product. One needs to create profit somehow, and the other is able to alienate one segment of purchasers in preference of another.


In addition to the revenue from selling cars. The GP was asking why Nvidia doesn't stop selling their cards and use them to generate bitcoin as a mining company.

Tesla simply took some of their cash and invested in Bitcoin, they didn't shift production or pivot their business.

The fact that they made money off of the investment and whether or not it was more than their revenue is irrelevant, the move didn't affect their core business, it was just lucrative.


Its not particularly unlikely that Elon Musk gets imprisoned for running pump and dump schemes



This was about trading Bitcoin, not accepting it as a payment method. Plus, it doesn't really change the question.


This is just an uneducated guess but is it possible that Tesla is just a company investing heavily in R&D of cars, and hasn't really begun to run a profit yet alongside some somewhat profitable speculative Bitcoin venture that Elon Musk's somehow put under the same roof?

According to that article if you split out the emission credits as well then they've made around -200% more profit selling Bitcoin and -600% more profit with emission credits than selling cars.

The fact that both are negative should tell you something's gone awry.


Actually that's what some companies in the ASIC supply chain have done when the first bitcoin ASICs came out (2014ish I think?). That's probably because of the kinds of people in those companies, and the kinds of markets those companies operate in, i.e. solely in the bitcoin mining market. Nvidia and AMD mainly sell their GPUs for various other use cases other than mining, and the mining uses are quite recent. Nvidia is also known for building different products for different market segments, and they do have dedicated GPUs made for mining. I.e. in 2018 they forbode machine learning uses in datacenters of their consumer hardware in their EULAs, to push people to their professional hardware instead. https://www.datacenterdynamics.com/en/news/nvidia-updates-ge...


Because cryptocurrencies are basically a pyramid scheme, the money for early investors is made by huge amounts of new people entering the pyramid.

Lots of people enter the pyramid because they have seen early investors benefit greatly and they want to benefit too. It works very well until people start getting out of the pyramid(selling) and the same thing happens in inverse, people want to recover the money they invested and price plummets.

There are two main reasons a big company like Nvidia can not mine for themselves:

1. Nobody will enter the pyramid in the first place just for enriching Nvidia. People enter a pyramid because they have seen their neighbor making money "out of nothing" and they get the Gold Rush themselves. Like a virus the Rush is contagious by people between them.

2. When prices go up everything is happiness and good feelings. When prices go down the people that have lost their savings will get mad at the company that benefited from their own ignorance or greed.


“Because cryptocurrencies are basically a pyramid scheme, the money for early investors is made by huge amounts of new people entering the pyramid.”

I think your viewpoint could use some revision. You’ve either described any typical investment but I Uber it as a pyramid or you misunderstand the goals of crypto.


Risk. When crypto inevitably crashes again they will be left holding the bag on a huge set of cards that may not have great resale value. Selling the cards is safer and also aligned with their core business competence.


Because they’re in the business of manufacturing and selling GPUs, not speculating on volatile crypto markets which could nosedive 90%+ in short order and drastically cut the profitability of mining.

If they suddenly changed strategy like this, their stock price would be hammered instantly and there would be a clamour to replace their CEOs and boards.


Because in the long term, they probably can't rely on mining for income. And if they stop selling gpus for a while, they are going to destroy their customer base. Gamers will get angry, people who use CUDA will look for alternatives, enterprise supply chain managers will look for more reliable manufacturers (AMD).

Essentially, this move would wreck their basic business. And dropping that business for crypto is very risky. It is also probably not what investors would expect.


Why mine gold when you could make a fortune selling shovels?


Why sell shovels when you can just buy shares in the company selling shovels?


For the same reason that many companies that happen by chance to have real estate as their most valuable asset don't wanna pivot to being real estate companies.


I absolutely despise cryptocurrency, so this may not be accurate, but my understanding is that they’re only reliable if many independent people mine. If NVIDIA kept all its GPUs and mined Bitcoin instead of selling them, it could control more than 50% of the hashing capacity. This could allow NVIDIA to double-spend bitcoins, the possibility of which would probably crash confidence in the asset.


> they’re only reliable if many independent people mine

Sort of. It's a matter of establishing trust with buyers, holders, and the ecosystem. If a hypothetical 51% owner behaved as a good citizen (which is to say, their incentives were publicly aligned towards preserving value rather than exploiting double-spends), the confidence wouldn't necessarily erode. (Contrast with a nation-state or other hostile actor who performs a 51% attack with the express intent of theft or undermining trust, which has happened with smaller cryptos.)

The three largest BTC miners combined have been well over 51% of the hashpower for years now, and they could collude to crash or exploit BTC if they wanted; it's simply not currently in their interest. Yet more evidence that while Proof of Work was a clever hack in the original BTC whitepaper, it doesn't inherently lead to decentralization, and is functionally indistinguishable from Proof of Stake with extra steps.


GPUs are no longer used to mine Bitcoin. They would lose lots of money trying.


Are you saying that GPUs are now competitive with ASICs when mining bitcoin?


I have no idea what people use to mine cryptocurrency these days and quite frankly I would rather it all stop, so no, I’m not saying that.


They could start a bunch of subsidiary companies.


They would always be suspicious of collusion.


I would suspect the reason is marginal electricity cost. Nvidia likely has to pay full marginal price on electricity whereas miners maybe geo located with cheaper electricity, or marginally free electricity (such as so called stranded energy or used in places where heat is already being created by electric heaters, but one could get marginally free computation done)


What would be the advantage of that? With this segmentation between GPU families, they now can charge for GPU's at the rate where it's profitable to mine ETH (what the market will bear), and thus participate in almost all of the ETH upside, without the risk.


It would destroy their business?

They'd have short term massive gains but it wouldn't be sustainable.


"In a gold rush - sell shovels."


Yeah, but don't sell crippled shovels.


There are more than enough people out there that want to just play games or do research. Miners are only making nvidia look worse. Their core demographic is getting disenchanted because what good is a great cheap graphic card, if you can never buy one.


There are more purchasers than cards available, so they are intentionally limiting purchases by miners with this method in preference to gamers. They don't want to sell their shovels to miners right now.


All the gold rushers buy all your shovels, and now gardeners can't get shovels to tend to their gardens.


Cryptocurrency value is extremely volatile, businesses need stable income streams to plan for development and growth. Further, just owning cryptocurrency isn't enough, it has to be converted into spendable money so that the business can pay employees and fund other business expenses, at Nvidia's scale this creates a lot of financial friction and undesirable complications.


Nvidia want to charge more for cards that can mine crypto currencies. Just like they want to charge more for the same product if it is used in data centers.

It's a way of artificially segmenting the market.


Because the value would tank when they tried to sell off all the Bitcoin, etc., that they mined.


> Why wouldn't nvidia and amd or any other card maker just keep the cards and mine all the cryptocurrency for themselves?

Bitcoin costs more to mine than the power bill you'll receive. This is why increasingly most malware happens by stealing power one way or another. And I don't think NVidia and AMD are in the stealing power business.


>Bitcoin costs more to mine than the power bill you'll receive

he's talking about cryptocurrencies in general, not bitcoin specifically. Mining ETH with recent-ish is currently profitable unless your electricity is very expensive (50+ cents). Besides, bitcoin mining is dominated by ASICs and there really isn't really any point in using hacked computers to mine it because there are more profitable coins (ones using ASIC resistant algorithms).


People are buying these cards for other coins that are still profitable to mine on the GPU.


The best way to get rich during a gold rush is to sell the shovels.

They're right where they want to be.


How do you know they didn't?


Can you imagine? They could do anything, they could create a corporate utopia.

I wonder if the corporate psychology is similar to human psychology. In which, far from being run by a green field thinker like you, they are short-term oriented, and mainly backwards-looking for the sake of emotional security--we already know best what works for us.


Because BTC is down 30% in the last month?


No one mines BTC on GPU, and Etherum is up 100% from two weeks ago.

Ok, I understand that NVidia does not want to mine themselves, but why on Earth won't they just raise the prices to the level miners are willing to pay?

"We want to sell to gamers, not miners" is the stupidest excuse ever. Isn't capitalism all about selling to the highest bidder? Why do they even care about who buys their product?

EDIT: Also, think about this: gamers that are considering upgrading their hardware get additional incentive - Etherum mining makes buying this new, shiny GPU basically free. Typically, after 9-12 months the initial investment is paid off. Without the possibility of mining many gamers will delay the decision about buying a new GPU, hurting NVidia sales further.


Gamers are the reason why Nvidia exists, it's a hard thing to let go of.

It would be like FB shutting down the blue app and pivoting to Tinder.


Hah, this comparison very much feels right.


They do, the mining specific cards are more expensive / hash rate. It's just market segmentation.


>Isn't capitalism all about selling to the highest bidder?

Capitalism can be about that, but there's a lot more to it than simply charging the highest price possible on every transaction. For example, loss leader products and free trials are common across industries. I don't have any insight into Nvidia's thinking specifically, but they might believe that cultivating the gaming market by not pricing gamers out of their product in the short term has much more longterm value than going all in on of the most volatile industires in the world.


Same reason why they are not an investment bank investing in stocks, or building skyscrapers in Dubai.

It's not their business. They've built over the many years, a very defensible business out of expertise (and IP). That expertise is unique and resilient to the whims of a speculative investor hive-mind.

More practically, they just wouldn't be able to compete. Against companies that build ASICs specifically for mining, the tech they have, while is viable for the small-time gamer-miner demographic, does not have good returns on a larger economies of scale.


Can't drive people to the mining cards they've released if you have everyone using the consumer hardware.

As someone who really likes the performance and ecosystem around NVIDIA cards this makes me happy, because I'll probably be able to own one sometime before the heat death of the universe if trends like this continue. But,

"To help get GeForce GPUs in the hands of gamers,"

Is a load of crock. They have a new mining focused product line they want miners purchasing and they get the convenience of the nice gamer PR from this to run it behind.

Company gonna company. I'm not saying it's a bad thing by the way, just don't think they're all pro gamer or doing it for reasons besides money.


Can't it be both? Seems like a win-win for Nvidia and gamers.

I can genuinely see a company like Nvidia getting a lot of customer feedback and maybe employees actually caring that gamers can get their hands on Nvidia's cards.


It makes sense to me that gamers as a market are more likely to be brand-loyal and gaming is also more moat-able than hashing.

For miners, they just want whatever does more hashes per second. There's no loyalty there and the hardware is competing solely on hash/power/cost. For gaming, you have proprietary software and APIs like "RTX"-branded stuff, game-specific driver optimizations, etc. where you can better defend yourself against AMD.

So for Nvidia, if they're going to sell X GPUs either way, they'd rather sell to gamers than miners to help preserve their gaming market share which plausibly has more long-term value. Just my guess, at least.


I think the cynicism is akin to apple removing the charger/headphones from new iPhones. They claim it's for environmental purposes, and maybe they really do care, but many think it's just a cash grab.


companies are people too!


Globo Chem "We own everything so you don't have to"


Their stated purpose is still true. They want to get these GPUs to gamers and their mining GPUs to miners.


I think there are better ways than intentionally crippling a general purpose compute platform.

On the surface, the easiest, cheapest way to alleviate the situation would be to require government ID for purchases and limit it to 1 GPU per person, and relax the limitations for educational institutions doing ML research.

A more serious way to do it would be to administer a test that you take in person (similar to the DMV); you pick either a gaming skill test or a machine learning test, and if you pass, you get to buy 1 GPU. This takes a bit more resources though, logistically, and although it sounds silly I think it would work.


This is what my local microcenter does. They have a sign when you walk in saying ONE gpu per customer per 30 days, and they write down your license number to make sure. I still was never able to get one(because people camp outside the store the night before deliveries) but I appreciate their effort.


It is legitimately difficult to get a 3080 right now and I suspect that Nvidia is actually eating a lot of bad PR for it now. That said, if society turns around and starts viewing mining as a significant climate change issue then building hardware to specifically support that market is likely going to be another PR disaster.

I suspect Nvidia's marketing team has grown too comfortable on consistently edging out AMD for ray tracing and isn't the sharpest bunch of tools in the shed.


It doesn’t seem like a load of crock to me. I don’t know why they would even bother creating a separate line for miners unless they were worried about essentially telling the whole gaming market “too bad” indefinitely. That might be more lucrative in the short term because miners are willing to pay more than gamers for the same card, but nvidia probably don’t want to just burn their bridge to the gaming community.


It really isn't a load of crock. For whatever reason NVIDIA has a real interest in making gamers happy. You hear this as being a serious motivation for them even from employees not on the record. The most cynical take on it would be that they want to do this for long term growth. Which if so, is fine. An example of capitalism working.


Either proof-of-stake or ASICs are gonna make GPU Ether mining rather short lived.

Nvidia fears that all those customers will vanish over night.


> Nvidia fears that all those customers will vanish over night.

Exactly - and the fear seems justified since it already happened once before in 2018.


They only fears that those consumers gonna sell their used hardware which gonna cause drop demand for GPU for a long time.


Well if the invisible hand off the market works in favour of me for once, I'm not gonna complain


I hope this is more successful than the last attempt (3060 Ti) where the "crippling" was just software and it was quickly circumvented, partly through NVidia's own screw up (they released a beta driver that didn't have that limitation).

It's almost impossible to buy a GPU now. Anywhere you can occasionally buy them is heavily botted. Some sellers try and mitigate this eg Zotac has a queue system of questionable effect. Others do absolutely nothing (eg Amazon).

You might say that's just supply and demand but it's not in NVidia's long term interest for crypto-miners to buy every GPU. Why? It kills the market for ML and gaming.

What happens is as soon as the crypto market next crashes, those GPUs get offloaded and flood the market.

I absolutely support NVidia in this, for several reasons. First, I'd actually like to buy a GPU for personal use. Second, there are real ethical questions around crypto, especially PoW. That will offend some people but it's true. Apologists will point to most crypto-mining using renewable energy. Yes, because hydro is the cheapest power. But all the hydro power use can actually limit the power and/or make it more expensive for everyone else.

Wouldn't it be funny if crypto-mining is the solution to the Fermi Paradox where civilizations ultimately ended up cooking themselves in crypto-mining waste heat?


> Apologists will point to most crypto-mining using renewable energy. Yes, because hydro is the cheapest power. But all the hydro power use can actually limit the power and/or make it more expensive for everyone else.

As an admitted apologist, that's one of the weaker arguments. The most compelling to me is that power usage isn't properly compared to traditional banking. Sustaining all of the people and in person infrastructure required for traditional financial transactions requires more than just calculating the cost of transmitting the transaction. In fact those parts are comparatively cheap, it's the verification that's expensive, in both systems. All of the people employed in banks who play any kind of role have an enormous amount of cost associated with their employment. I'd like to see a comparison of heating and cooling costs for all of the banks in the world, which is just a small slice of the total cost of traditional banking, factored in to comparisons. The only one I've seen compared it to the computing cost for processing VISA transactions, which didn't seem like a proper comparison.

I'm also generally suspicious of some people (not everyone) who's gut instinct to environmental impact are limiting the spread of innovative and extremely useful ideas rather than looking at how to decrease the impact, particularly when those ideas help to decrease reliance on powerful central authorities. Proof of work is the innovation that allowed cryptocurrencies to scale to the level they are today, and it's precisely that work that allows them to operate securely despite being decentralized. Abandoning it because of the impact rather than reducing the impact would be like abandoning cars rather than making them electric and more efficient.


The focus is on transaction layer because that is what the crypto currencies provides. The blockchain doesn't run customer support, doesn't handle cash logistics, doesn't decide in conflicts involving the real world (e.g. if you do a blockchain escrow thing with multisig or smart contracts or whatever to give customers the equivalent of chargebacks in case of fraud, you still need humans to make the decision), ... so you can not just pretend all those human roles go away - and the people already working in blockchain ecosystems also aren't calculated against the blockchains in the calculations. Deciding which ones won't exist in the hypothetical all-blockchain world has far-reaching consequences, and probably something there is little consensus on. Proposals and estimations based on that would be interesting though.


Describing cryptocurrencies as a transaction layer does not describe the value. Communicating “Adam paid Bob X coins” is not hard.

What’s hard is having everyone agree on the same history of transactions. That’s what cryptocurrencies provide. There is an enormous amount of accounting and verification work that goes on within banking systems to solve the verification problem.

My argument was not that every human role has a cost that needs to be factored in, but that any human role has a high cost, and a large number of human roles require very large amounts of energy to support.

A fair bit of what you describe also can in fact be done with just smart contracts where the contract and those who sign it (the human customers) makes the decision without any middleman (without a human escrow agent).


Actually, is there a need to block anything? They're coming up with a mining-focused product line now. Just make them slightly cheaper per hash and voila - all miners will be buying the mining-focused products. They lack the video outputs so it makes sense, you can skip some of the BOM on the card, save a few bucks. As it has already been mentioned in the thread miners are super sensitive to squeezing every cent out of their setup. If they can save some bucks on cards, they will surely go for it.

So either the mining cards will be cheaper than regular, which makes this block a moot point in near future, or they will be more expensive per hash than normal graphic cards. In which case the block makes sense but in my opinion is a bad move by Nvidia. Making the mining cards more expensive than regular cards is throwing a gauntlet to the whole world to break the drivers or workaround the hardware. It will be fascinating to watch the cat-and-mouse game of hackers and Nvidia developers, but it will not fix the horrible GPU market situation we're in now and that is a shame.

Disclaimer: I want to buy a new GPU soon but for the MSRP and not the price equivalent of a small car. So I may be biased...


The issue is the resale value for actual working GPUs is higher so the miners will often buy the normal cards anyway


My understanding is there is a concern that cryptocurrency miners are buying GPUs, using them for a few weeks to determine which ones they can overclock, and selling the ones they can't (and have probably limited the life of in the process) since you can probably sell a 30 series GPU for more than you got it for, even if you're upfront about it being used.

All of that isn't possible with the mining-focused line, so Nvidia feels they need other tools to help convince the cryptocurrency miners to move over, hence the block.


I hadn't heard of this before - do you have a link or something with more details?


> Just make them slightly cheaper per hash and voila

The problem is they want the mining cards to be more expensive per hash.


I find the argument for this move unconvincing: Nvidias failure to meet demand is somehow the fault of... the customers? But since there are morally aprehensible workloads, it is totally fine to... throttle them? Not prevent or contractually prohibit, as one might expect... And of course it is Nvidia who decicdes on the morals of your workload.

I mean, seriously, how can anyone be ok with that?


how can anyone be ok with that?

I don't want to mine cryptocurrency on my graphics card. So given the choice of buying an unrestricted one off ebay for $2500, or a restricted one for the originally suggested price of $800, I would rather buy the restricted one. Nvidia isn't being dishonest, they aren't throttling the cards they already sold, they aren't claiming anything is moral or immoral, they are just offering a new product that does exactly what I want for cheaper. So I'm certainly okay with it.


I would like that too but it doesn't seem to be the case with the 'restricted' RTX 3060 (I would like to get it at RRP).


I didn't see Nvidia weigh in on the morality of any workload, just like nerfing FP64 performance in their GeForce cards wasn't a statement on the morality of double-precision workloads. They're trying to steer cards towards a particular segment of the market, there can be a lot of reasons for that.

For example, they might believe that while selling to gamers is less lucrative than selling to miners in the short term, the gaming market will always exist while the mining market dries up the moment GPU mining is no longer profitable; so maintaining a good relationship with the gaming community is important for their long term health. Or maybe they're just tired of gamers yelling at them.


You realize you're making a moral argument against moral arguments, right?

If you'd like to know how people are ok with this, it's been explained plenty already, right here in this discussion.


I think it's just an argument against a unilateral decision by NVIDIA under the facade of morals. Businesses aren't people and don't have morals, everything they do is strategic and profit motivated, even if the people that compose them have morals.

My guess is that NVIDIA doesn't want one basket of demand dominating the majority of their demand while disenfranching all of their other demands in parallel computing (graphics, industrial/scientific, etc.). If they allow crypto to take the lionshare of their cards, consumers for the other demands will eventually seek out alternatives if they haven't already. That's all well and fine as long as crypto demand sustains whatever NVIDIA can supply indefinitely.

It's not so great if crypto demand for GPUs drops drastically, then NVIDIA is sitting there looking to drum demand back up from all their previous customers and markets. Essentially, they're likely just trying to distribute risk for a future demand portfolio.

I can't honestly believe any large investors or top level executives at NVIDIA are losing a second of sleep by having so much demand they have to turn people away. If they're losing any sleep it's all the lost profit they can't make because they can't meet full demand or because they're in a potentially risky situation.


Did they do it under a facade of morals? Perhaps you can point me to where Nvidia makes a moral argument.

As an aside, businesses don't act on their own. People do have morals, and they're the ones running things. Whether or not they use their morals is a different question, but we needn't preemptively excuse them from doing so just because money is involved.


This is how community standards works.

The government should never mandate that video card manufacturers do this, or don't do this.

If you don't like it, set up your own video card business that caters to crypto mining.

The vast majority of NVidia customers are applauding this move though.

This is the free market working, but if you're into crypto you may not like it because you're not winning the marketplace of ideas.

(And IMO if you support cryptocurrency you should appreciate this as well, because astronomically high GPU costs for gamers erodes the standing of cryptocurrencies in that demographic, it is very bad PR to just let GPU costs inflate -- people start to vehemently hate cryptocurrencies because of that effect).


They can't improve the supply any longer, so they are cutting demand instead.

Why would you prevent mining if some gamers do want to utilize their idle GPU power? Mining is supposed to be for everyone.


Didn't Nvidia try this on some different cards recently? And wasn't it only about a week before there was a patch that undid what Nvidia had done?


My unfounded speculation is that the 3060Ti limiter (which was mostly bypassed due to an accidental leak of dev drivers) acted as a bit of a test balloon to see how it would be attacked before implementing it on the 3070/3080 silicon.


I wonder if the « accidental » release was to avoid the motivation for a massive lawsuit.

If apple can get sued for « excessive » throttling when batteries lose peak cranking amps, nvidia would fare much worse.


>If apple can get sued for « excessive » throttling when batteries lose peak cranking amps

You are missing the main part, "Apple downgraded your CPU behind your back" which is very different then "The iPhone box clearly mentions that when the battery is low the CPU will throttle and a notification is shown".

It seems the fanboys managed to trick you in believing that Apple is the victim here.


They only tried it on a version of the 3060, and they accidentally released a driver without LHR.


Using a made up but probably good enough analogy, if scientist created a blackhole in the lab that could end up sucking in the entire planet and the solar system, would it be OK for someone to jam the mechanism that sustains it? I think of PoW gambling casinos slash Ponzi schemes (Bitcoin) in the same way. If the governments don't have any motivation to stop the mayhem, then the company whose products are being used to create that blackhole should step in. I never liked Nvidia, but this is a necessary decision.


I can’t blame you for using a throwaway account for a comment like that. Many cryptocurrencies provide value while video games suck time and value.


> Many cryptocurrencies provide value while video games suck time and value.

You don’t really expect anyone to take your defense of cryptocurrency seriously with a statement that hyperbolic and dismissive, do you?

Since the games industry is making up almost a quarter of the M&E economy, which is the single largest industry segment in the US, it’s evident that games provide a transfer and store of value to the economy. People who create games are effectively mining, so there is an apparent creation of value too, one that also involves creativity and skilled labor, unlike crypto. You can even read about the “value chain” of the games industry https://en.wikipedia.org/wiki/Video_game_industry#Value_chai...

Just last year’s video game revenue in the US alone is equal to two thirds of the entire market cap of ETH as I post this, and of course the industry's revenue is growing every year, and the global games industry is much larger than the US alone. Crypto will become bigger eventually, but it’s not today. (And which is larger is actually irrelevant, you compared apples to orangutans, my point is simply that it’s a pretty bad idea to try to falsely claim the financial value of games is negative.)

I don’t even play games that much, because you’re right they do suck my time, so it’s an awkward position to be defending them, but the least you could do if you’re going to spout about the “value” of games and crypto is start from the truth and financial reality of the markets.


I’m sorry, spit my coffee over the keyboard. What value does cryptocurrency provide other than sucking the world’s electric energy for meaningless calculations?


I am glad you asked. The value that cryptocurrencies provide boils down to 3 main things:

1) A store of value.

2) A transfer of value.

3) A creation of value.

Bitcoin provides a store of value by still letting you buy a pizza with your Bitcoin both now and in the future. It’s price has always been highly volatile but after every 4 year cycle, it has been worth more in every major world currency.

Stellar Lumens, Algorand, Dogecoin, and to a lesser extent Bitcoin, & Ethereum provide a transfer of value by letting you send money across the globe.

Ethereum is the poster child for a creation of value by allowing people to permanently deploy smart contracts to the Ethereum mining network. These contracts include ERC20 stablecoins like MakerDao’s Dai, USDC, lending platforms like AAVE and Compound, DeFi exchanges like Uniswap, Yield aggregators like Yearn.finance and Curve.fi, and DeFi coin converters like 1inch. Back in 2017, the only compelling Ethereum platform (or DAPP) was CryptoKitties which were the precursor to today’s NFTs. I think NFTs are in a bubble but nowadays there is a much more compelling and diverse lineup.


Value that basically doesn’t exist without real money behind it? That can be used as… well, money without the energy waste?


Yes, some of them can be used without the energy waste. As far as value goes, Dogecoin likes to say on it’s website, 1 Dogecoin = 1 Dogecoin. It’s done a pretty good job at holding that value, lol


Despite what any website might say, all of the hype and “value” of crypto always comes back to dollars. If you take that away, I don’t see how anyone will want to stick around short of super hardcore techies.


Note that unfortunately they actually have a set of cards that are better suited for crypto.. they just don't want you to use these.


In other news, Nvida has cards specifically designed for professional miners: https://www.nvidia.com/en-us/cmp/

https://hothardware.com/news/msi-cmp-30hx-card-debuts-for-et...


I mean, the cards are selling at 3-4x MSRP right now. Won’t halving the hash rate just cause the price of the cards to drop to 1.5-2x MSRP and miners just buy twice as many?

Possibly good for NVDIA I guess (selling twice the units assuming the can make enough), but I don’t see this helping gamers get cards in hands.


Nope. These are new SKUs (LHR variants), not a patch that retroactively applies to existing stock/sales. If anything, so long as crypto demand persists, this will result in a upward influence on the scalping price of the currently existing non-crippled 3070's and 3080's. Technically Nvidia has existing mining SKU's (their HX skus) so new supply is still entering the market, but its unclear exactly how things will balance out. In the short term (assuming demand remands high for crypto cards), I'd expect scalped pricing to go up, not down. And that's assuming these LHR's arent compromised like the original mining-crippled 3060's have been.


I think it's less about the upfront cost and more about hashes per kilowatt-hour.


Ah that makes sense, I forgot about power usage.


I'm not sure this really is all that good for gamers. It'll solve the short term problem of lack of supply, sure, but in a years time we'll instead have a whole bunch of e-waste mining cards and a very thin second-hand market for gaming cards. All upside for Nvidia though!


Does this mean my pre-crippled 3080 is now going to be worth even more on the secondary market?


Read Adam Smith.


I would say yes.


Folks, the GTX 1070s 8GB coming with 2017 laptops are still good enough for literally any semi-professional, non-mining application out there, from machine learning to gaming. With a few hacks and the right hardware setup, they can still do not-so-clever professionals happy. Therefore, this is a full supply-demand problem, with Nvidia facing its first, real catch-22 maturity problem: how do they sell new GPUs to happy-with-1070 regulars like me?


This falls apart when you move to a 4k display. A 1070, a 4k display, hdr, and a new-ish game and you are lightyears from the 60fps that is a minimum for many gamers.


Nvidia is betting DLSS and Ray Tracing will be the killer features to get you to upgrade


I find the prospect of being able to add more overhead and potential bugs into a product to remove a niche functionality in a move that reeks of PR marketing driven solution, too be of bad taste. Whilst the overhead will be so small I doubt it will be measurable, it still is not zero and only adds the possibility that some workloads of non crypto currency origins fall foul of this in ways that may not be easy to discern.


"Niche functionality" that is ballooning the price of their graphics cards for end users?

> adds the possibility that some workloads of non crypto currency origins fall foul of this in ways that may not be easy to discern.

So what? The proof is in the pudding. You buy things as they are sold, not with some kind of expectation that you can achieve 100% of the theoretical performance of some ideal version of the product. If I buy a car with a limiter that doesn't let me go over 100mph, I shouldn't be surprised or upset that I can't hit 105 mph.


> a niche functionality

That's kind of a bullcrap, since this 'niche' functionality completely crippled graphic card sales, and negative effects will ripple through PC gaming markets for quite some time. Every gamer that didn't manage to snatch one before is pissed beyond funny.

Imagine a gaming studio that is deciding to develop a next-gen game - why would they try hard to go for / optimize for PC version if there are very few actual owners of good cards? Produce either generic all-platform-compatible stuff or abandon PC market altogether.


I'm not sure its niche.

ETH is the 2nd most popular crypto with a $394,657,267,540 market cap at $3,403.15 per as of the timestamp.


It's a niche for GPU usage when compared to gaming, rendering, video editing, machine learning.

And it's most likely a really short lived niche


I mine with my gpu when i dont use it for other things.. i am still using the heat it geterates, it genuinely allows me to have the central heating off for more months of the year and on for fewer hours when i do use it.

I considerd selling my 3080 as i struggled to justify keeping it given the price they go for on ebay, but in the end kept it due to concerns over the chip shortage..

Gamers are miners are scalpers..

im not a fan of companies dictating what i do with things i bought from them..

Level1techs did a video on using tesla gpus for graphics, so all of this seems like bullying really to me as a consumer.. if nvidia want to help make that easier!


I wonder what the carbon footprint of a new gpu is.. it would be great to see all the old mining and ai cards being used to game on. I bet they can all do a decent 1080p game no?


I never planned to mine cryptocurrency but such a move sends a very bad message to me as an end user.

Fine, NVIDIA. I planned to have a dedicated Win10 gaming PC with an RTX 3090 and a separate Linux workstation but I guess it's better if I just get the Threadripper Pro workstation and equip it with an AMD 6900XT and do both my work and gaming under Linux. Will spend 40-50% less money, too.

And Steam is getting better and better at gaming under Linux with each passing week so the Linux users automatically get in a better position with time.

If that's how you want to play, good luck to you, NVIDIA. You just lost a future customer.


Why would them diminishing a certain aspect that you admittedly never planned on using in the first place affect your decision? Does your work involve computing millions of hashes, but isn't cryptocurrency?


No, my work doesn't involve that at all. It just sends the signal to me as a customer that they can limit what I do with something that I bought and is supposedly now mine. It's a slippery slope kind of situation where you don't know what else they might figure they'll want to limit in the future.

I am not okay with that so I'll vote with my wallet.


Nvidia never applied those mining limitations rectoactivelyl they only announced for newer cards. Still they crippled VFIO capabilities with driver updates in past so they had bad track of record years ago.


Yep, that's what worries me. They are cautious for now but if they don't meet pushback (or a financial hit) they might get bolder and start applying more and more restrictions.

This is likely too paranoid for many but the technical possibility is there and believing in the good heart of a huge business is to me not a sound strategy.


Why only reduce them to half the performance? How about 0%.

I predict this will do absolutely nothing for general availability of these cards.


Denting the performance that way makes them no longer cost effective for eth, but doesn't make them completely useless for any workloads (in games, or adobe premiere, etc) that happen to look like crypto mining - so they can avoid selling a completely broken card.


Because halving the performance makes them unprofitable to run. If you buy one you can still try mining, and if it falsely detects mining your desktop won't crash, but professional miners won't be interested.


Considering they sell the cards afterwards, I remain unconvinced that they will (to miners appear to) be unprofitable at half the hashing performance.

I fear these guys will just want the double amount of cards now :/

So sorry, but I'll believe it when I see it.


I have mixed feelings about that.

I’d like to replace 1080Ti with 3080, but miners priced me out.

I wonder how exactly nVidia is doing that? I do little integer ops on my GPUs, but I do a lot of FP64 ones. Just like these integer Ethereum hashes, FP64 is not used by videogames much.

If nVidia does that performance throttling by detecting some patterns in the code, looking for Ethereum miners, AV-style — pretty sure Ethereum miners will find a workaround soon. These AV-style code detectors are unreliable by design.

If nVidia does that by crippling specific low-level instructions, this gonna slow down innovation rate for everyone. Not just for me with my niche FP64 CAD/CAE workloads, for games too.


I said it before and I'll say it again - the vendors are the criminals here. There are vital industries that need GPUs for their viability - video games, medical research, engineering etc. and they should filter out the robo buyers to allow these people to purchase the graphic cards at reasonable rates. Right not RX570s are going for $200 on ebay right now... A 4 year old mid-tier graphics card....

Just allocating some GPUs to a wait list would be enough.

For people like me who cannot wait for GPU to become available you can get a very cheap usb-hdmi dongle off of amazon for dual monitor support. It works well enough for what I need it to do.


Is there some merit in comparing this to regulating concert prices? There too one might argue to let the market determine the price, but there too that might lead to a very unequal situation for many, that may eventually backfire.


This is like buying a 400hp engine in a sports car but it's only available to use 400hp to those that are retired, and anyone else it's just too bad. The problem is not miners, it has been said many times before. The problem is the silicon shortage, and now scalpers and even worse yet, bots.

Nvidia needs to work in fixing the JIT manufacturing process, spending resources on any other issue is not helping. Inventing new nerfed chips in your products to a specific use case is not solving this. They are at risk at also angering a prominent portion of customers since their "alternative" CMP HX line is laughable.


>NVIDIA announced today that it's halving the hash rate for Etehereum cryptocurrency mining on the new GeForce RTX 3080, 3070, and 3060 Ti graphics cards to make them less desirable for miners.

I have a question for someone familiar with GPU technicalities.

Won't this affect other, non-mining tasks?

Crypto mining is based on cryptographic hashing algorithms.

So won't this affect people in security? That work with hashing algorthims? I suspect tools like hashcat[0] may be affected.

[0]: https://en.wikipedia.org/wiki/Hashcat


interesting philosophical question that intersects with "right to repair" and "ownership of digital purchases". when you buy a product does the company get to dictate what you can do with it.


When you buy a product? No.

When you purchase a license agreement for software that the product depends on? Yes.


So apple restricting iphone repairs (by breaking camera/fingerprint reader, or nagging you about the battery/display) is totally fine because it's done in software?


It's not quite so clear cut. Less and less hardware solutions can meaningfully exist without some software for it to provide the functions it was meant for when purchased. This is a slippery slope that brings together the right to repair & net neutrality law type arguments.


They are limiting mining of a single coin: Ethereum. Nothing is going to stop mining other coins, which are quite profitable. Also, Ethereum is going through two upcoming events which will change the landscape dramatically. July has EIP-1559 which will reduce ETH mining earnings by 30% and the eventual move to proof of stake in late 2021/early 2022. Both of these events will make other non-ETH coins more profitable.


Ethereum mining is far more profitable than any other coin at the moment.


It's likely that this is just a firmware change to the cards and nothing onboard/physically changed at all. If this is the case, then this is hilariously easily defeated by using the firmware updating tool, provided by Nvidia, to get around this. We'll see though. With any luck, they did make physical changes to prevent firmware flashing around this, but I strongly doubt it.


Could there be a valid reason for this ?

For example: A trend may be appearing where hackers gain control of the GPUs of unsuspecting users and then mine crypto in the background. The GPU uses more power and slows down given the user a bad experience. Nvidia wants to decrease the value of such hacks and decided to cripple the hardware.

Similarly reducing the incentive for employees to mine with company equipment and electricity.


This whole situation makes me wonder if the GPU market will just crash once the biggest coins move away from PoW?

The market would be flooded with a ton of current and last gen GPUs with second-hand pricing, while AMDs and Nvidias newest offerings suddenly lost a major part of their demand.

I guess another possibility is that miners will just transfer their efforts to coins still working on PoW, trying to make those relevant instead.


Thanks Nvidia. Not even 6 hours and already all the RTX 3070 computers (of which I was planning to buy one this week) are already sold out just about everywhere, as people are panic buying computers with these cards. Probably going to have to wait months before I have a chance at one of these as a gaming PC again.


This was announced several weeks ago already.


...ended up spending as much on a computer as I would have yesterday with an RTX2070 Super instead, still really good but not quite as good.

Don't really want to risk the situation getting even worse yet again, and even these computers going out of stock.


Why not the 3090? What's the logic?


Cost is roughly 2x (at MSRP/inflated MSRP) over a 3080, so if you can buy a 3080 there's no reason to buy a 3090 for hashing. Hashrate is something like 20-30% more than a 3080.


Drive miners to the high priced cards while leaving the price/performance market for gamers.


The extra cost over the 3080 is probably not worth the minor increase in the hash rate for mining.


3090 availability is relatively good at the moment.


Relative is a broad statement depending on where you live. In the US, Newegg has been going in-and-out of stock but mostly out.


This has very much not been my experience in the US.


I'd love to see a few links. I haven't been able to purchase them, checked Amazon, Best Buy, and newegg.


Is it? I haven't seen one in stock in a long time. People are setting up sniping programs to auto-buy them.


I'm on the fence about switching from console to pc, but I've still been trying to get a 3000 series card anyway. The ability to use the cards for ml and crypo in addition to gaming is appealing, but moves like this just make me think sticking to xbox and my gtx560 is best.


> I've still been trying to get a 3000 series card anyway

...I think I know why you can't get one. In all seriousness though, using GPUs for mining has trashed the gaming market and made entire realms of PC gaming inaccessible to lower income people, it's an incredible shame.


You can customize mining algorithms to work on any hardware....

Either way gpu mining was always a terrible idea since they have resale value and thus cost of attack was small vs ASICs that are rendered worthless when they attack their own chain effectively unable to break even on sunk costs.


How does Nvidia limit the Etherium hashrate while keeping other functions (gaming, general computing) intact? Is the limitation implemented purely on the driver level? If so, how would the driver know which function it is computing?


I am doubtful this will have any real affect of prices but I am hopeful. I need GPUs for deep learning and simply cannot afford the current prices if I can even find them available. I am so sick of cryptocurrency.


jokes on them. Next crypto currency will be mined as a roblox mod.


I don't get it. Are GPUs still profitable for mining anything? Hasn't the industry shifted to ASICs for many years now?

I doubt any serious miners are buying up all the GPU stock. The shortage looks more like an effect of rampant scalping which we see with other electronics as well (PS5), and the general chip shortage impacting the supply chain.

A cynic might think they're selling off low quality components with a marketing spin that they're actually helping consumers. With the current insane market prices, any attempt to meet the demand sounds like a great profit opportunity. A cynic might think that, but not me. :) Just take my money, Nvidia.


$10-15 per day, per card mining Ethereum. There are other chains ofc.


Can mining cards be used for something other than crypto mining? eg rendering? Could they still be used in VMs and then route virtual display outputs via network?


Good. Waste of energy.


NVidia has a supply problem. Imagine making something that is so popular that you continuously run out of stock for the people that you originally intended your product for. The normal solution would be to crank up production to the point where you can supply all of your customers. Might even get some better economies of scale out of it too.

This is the dumb way to deal with the problem. Besides the fact that it will get hacked it alienates a good chunk of their customers who would be happy to drop more $ if there were more product.


Kill all miners, save the planet!


GPUs will cost less only when cryptocurrencies are outlawed or otherwise crash.


This is dumb.

As if literally armies of highly skilled technical miners aren’t going to quickly bypass whatever Nvidia has cooked up.

They mess with the drivers? almost instant workaround. They mess with the hardware? That army will go through the GPU instructions one at a time until they find a way to change the mining software.


This is done at driver level though right? So it'll be worked around.


Like I said for electricity, aren't you free to do with your GPU whatever you want?!

This is anti-consumer they should be sued.

Just like ISPs wanted to slow your traffic for services they don't like and didn't succeed hardware producers can not limit what you do with your purchased hardware.


Other people doing research etc. need GPUs. If rich people started to hoard all food or ffp masks, shops would intervene first (they did during the hoarding last year) and the government would follow if that wouldn't help.


I guess you are referring to the Tragedy of the Commons[0] but in the market efficient economy there should be enough producers(supply) to serve high aggregate demand. This action by NVIDIA only shows that GPU industry is highly concentrated and that more competition is needed. It seems like NVIDIA is a victim of its own success since it can not produce enough GPUs.

[0] https://en.wikipedia.org/wiki/Tragedy_of_the_commons


And if they simply raised prices and made huge profits, they could afford building their own fab, or at least outbidding other companies for TSMC/Samsung/whoever fab capacity...


It's not like nVidia is keeping it a secret. They are telling you ahead of the time that they are limiting the hashrate. If you don't like it, buy something else.


It's still anti-consumer, imagine situation in which self driving car manufacturer hardcodes rules according to which car not drive to certain places because reasons.

Products even if specialized can always be used for general purpose that's the beauty of computers and "hacking" after all.


I think consumers that finally manage to buy a card at a decent price will disagree


Will this have an effect on compute outside of cryptocurrency?


Any antitrust should look at this and immediately open a process to fine Nvidia for market dominance, or split it, or whatever. The ability for a company to do such a thing is in itself enough to grant such an action.


Too little too late? I think mining has peaked with ETH POS shift weeks away. We will soon find out how much of Nvidia’s business was truly driven by crypto versus what they conveyed to investors in the past.


>Too little too late

Just on time for ETH to move away from PoW! It's almost like NVidia waited for ETH


Where can i find the ETH 2.0 timeline? I was under the impression that the major steps are still one year away.


> company's dedicated GPU for professional mining

What a world. What do you do for a living? Professional miner. oh no not that kind of miner.

Anyway...I'm guessing it's again only the eth hashing algo that's crippled.


I know this is just one usage of this, but hampering the workload of the hardware you're selling people is absolutely backwards.


With Ethereum 2.0 there is no need for these cards. I think in a few months if it goes well.


This will achieve nothing, just don't update the drivers.


Are they seriously killing their own demand? This is weird


Nvidia contributing directly to the energy waste


It's will be funny to see how HN crowd that support Nvidia here will react when Nvidia going to cripple ML features for the sake of market segmentation.


This is exactly why I'm worried. I took an ML class last semester and having access to CUDA on my 1080Ti (explicitly purchased for gaming) was a boon for my project group, since we could actually tune models efficiently.

This might be good for the short-term, but it sets a precedent I'm really not happy with. I know they already do some of this with Quadro, but my understanding there is that the value add is in its reliability and certification, not ability to operate on workloads that have been artificially crippled on the gaming cards.


There's precedent with crippled FP16 performance, so it would not be surprising to see such things in the future to attain market segmentation from consumer cards.


How hard can it be to reverse engineer the drivers and remove the protections? Theres economic incentive now after all


"remove" how? The card BIOS is not going to let you just flash any random driver you cooked up.


"GeForce Is Made for Gaming" Yea just like Microsoft Windows is made only for Internet Explorer and Microsoft Office. Piss off.


I know it’s “fact” but is there any actual proof that demand during/from Covid and new generation of hardware worthy of upgrading to isn’t the actual increased demand for GPUs rather than miners?

I “know” miners are buying cards up and converting energy to heat while many would list climate change as important to them... but is there any proof it’s miners driving the demand?


> "To help get GeForce GPUs in the hands of gamers, we announced in February that all GeForce RTX 3060 graphics cards shipped with a reduced Ethereum hash rate," Wuebbling added.

Is there any evidence that crypto mining plays a significant role in the ongoing hardware shortage? Any evidence at all? I see so many people complain about it, but I haven't seen any reason to believe crypto is one of the primary factors driving the shortage.

I don't mine or trade crypto. I acknowledge the many problems with current crypto offerings and have no interest in dealing with the tech until those problems get sorted out (if that ever even happens). But I inherently don't like the idea of a hardware company intentionally crippling general computing tech like this. And it's especially frustrating to see them try to spin it as a positive move for their customers.

The RX 6000 series was another huge step forward for AMD graphics hardware. Hopefully their 7000 series will be even more competitive. NVIDIA needs the pressure.




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