Chip maker Nvidia has launched its new series of graphics card this week. It appears that the company took the gamble of launching GeForce FRTX 2000 series of the graphics card at a time when the mining activities are not attractive for miners. That is mainly because of two reasons. The first is that the prices of most of the virtual assets are falling like a pack of cards while the second reason is that mining consumes a lot of power making it less attractive.
Retreat from Mining
Another significant factor is that Nvidia’s latest announcement came within few days of announcing a retreat from the retail mining of digital coins, ccn.com reported. The American firm has launched three series of graphics cards, which are RTX 2080, RTX2080 Ti and RTX 2070. The company is obviously banking on the strength that the range of cards would deliver a maximum of six times better performance from the previous generation graphics cards. Every graphics card is laced with turning architecture apart from the GeForce RTX platform’s support.
The chip maker has introduced a fresh series with the aim of pushing programmable shading, real-time ray tracing and artificial intelligence (AI) to the next or advanced level. Incidentally, these three techniques are applicable to games also. Ray tracing technique centers on including realism to the virtual world whereas the AI use is about running power algorithms for itself. This will develop clear, crisp and lifelike images apart from special effects.
As far as the sharding technologies, it enables users to have experience with games that maxed out settings besides largest frame rates. In any case, Nvidia’s GEForce RTX series seem to be not appealing to miners though it looks to be interesting for the gaming experience. The new architecture could lift the hashing power by anywhere between 25 and 35 percent. Incidentally, it is armed with Tensor cores, which performs AI computing hashpower.
However, there is a hitch for miners due to the costing. That is because card costs about 50 percent higher than the earlier generation. This meant that miners would desist from upgrading at this point of time given the existing market conditions on mining activities due to sluggishness in the cryptocurrency market. RTX 2080 Ti, which is a top performing chip, is priced at $1,199, which is more expensive than GTX 1080 Ti’s $599.
If miners compare the costs and performance, it looks that the new series not better than the previous one. This is based on the bandwidth, CIDA core count, and memory speed. Unless the price falls on the new series, the chip will not be an attractive proposition to miners, who are already facing costs pressure.
In its latest revenue report, Nvidia expressed its displeasure with mining of cryptos. That is because the company suffered a significant drop in revenue from GPUs focused on mining. The company indicated that “Our revenue outlook had anticipated cryptocurrency-specific products declining to approximately $100 million, while actual crypto-specific product revenue was $18 million. Whereas we had previously anticipated cryptocurrency to be meaningful for the year, we are now projecting no contributions going forward.”