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Am I missing something? Why would NVIDIA want to reduce demand for their graphic cards?

• hnaccount_rng 5y ago
  There is actually a good case to make here. Nvidia currently is in the tough spot of a) not having the capacity to saturate the market and b) not being able to expand the production to match. B is because they don’t have enough confidence that the crypto people will be there as costumers in 5 years. And A is a problem, because their traditional user base (ie gamers) won’t match the spending, but will still get their fix (just not from Nvidia). And that breaks the strangle hold that they had a couple of years ago on that market. So short term: having the high prices paid by crypto people is nice. But it destroys their relationship to their old customer base. Depending on where the crypto market will be in 5, 10, 15 years, this can be the 5x of their market cap or the 0.2x
• bee_rider 5y ago
  They have done things like come up with a mining only SKU, apparently partially because they are annoyed that people aren't using their cards for their intended purpose. Probably, while a sale is a sale, they see the crypto market as flakier and would rather keep their gaming reputation intact.
• rasz 5y ago
  Relying on single customer can have quite severe negative consequences (walmart crushing whole businesses is a good example). GPU shortage is destroying PC position as a viable gaming platform. Give it couple more years of GPU shortages and Nvidia will irrevocably lose whole market segment, leaving it with compute and shaky scam riddled crypto.
  • goldenbikeshed 5y ago
    Yes, nvidia and AMD should collude to destroy crypto from a market risk reduction perspective.