If con artists convinced speculative investors to spend millions of dollars on Tesla Model 3s, light them on fire, and dump them into the ocean, I would not blame Tesla for the reduced availability of Model 3s.

Tesla still got paid.

that's irrelevant to the point about demand

But thats not what he or she was responding to.

You realize it's not simple to just build the chip production facilities to facilitate this? It requires major capital investment and planning.

Looks like you also missed that the chip shortage is affecting automobiles. Many articles exist that can explain better than I can about why this isn't a quickly resolved issue.

It's not a supply issue.

By design, proof of work requires even more resources as more resources are spent on it. One might say that it expands to consume all available supply.

Because of that, no matter how many cards Nvidia makes, crypto miners will want them all, as long as there is money to be made in crypto.

Not true at all. If enough hardware is available, pool only expands until reward covers electricity cost plus small margin. I.e. bitcoin mining electricity-cost bound for the long time now.

Electricity costs plus cost of capital (etc).

in practice that's not even true because some miners are willing to run negative margins because they extract value elsewhere in the process

(the most prominent example is stolen electricity, but also for many miners it's a form of cash laundering. You always get less money out than you put in, but it's clean cash. In China's case they can't get money past capital controls, but you can mine at a loss and sell the bitcoins in a jurisdiction of your choice, that's worth something to them. Also, many miners are front-running exchange trades or extracting other forms of economic value.)

Interesting. How does running a mining operation help you front-run exchange trades?

standard front-running stuff. you can see the transactions that are in the mempool, you can either submit your own higher-fee transaction (likely to be included before theirs) or if you're a miner you can try to mine blocks with your transaction included and theirs specifically excluded so that yours goes first.

that essentially tells you that the price is about to go up or down, so you can make money on the movement.

https://cointelegraph.com/news/front-running-flash-bots-and-...

https://coinmarketcap.com/alexandria/glossary/miner-extracta...

Thanks.

Most of what you suggest doesn't benefit from having significant mining capacity yourself. (Though one thing does.)

There are limits to manufacturing capacity, especially such advanced manufacturing.

I feel like if Nvidia could, they would have scaled up. Why wouldn't they want to meet demand?

Uh, because you can inflate MSRP into the stratosphere and blame it on crypto miners?

Cryptocurrencies give NVIDIA the perfect bullshit excuse that people won't ponder too hard over, because the story of modern media is simplistic... every story must have a "good guy" and a "bad guy". It has to be dumbed down for all the idiotic plebs like us.

> Uh, because you can inflate MSRP into the stratosphere and blame it on crypto miners?

Cards are still selling for significantly more than MSRP, so if this was the plan they're doing a terrible job of it.

Nvidia doesn't make their own silicon, they go through TSMC's foundries, which means they're competing for a finite amount of production slots.

I thought their gaming line of 3000 chips is being produced at Samsung

Doesn't really matter. 3000 chips are on the cutting edge node and thus competiting with everything else that also wants to make chips on it.

It really is multi-modal market. And demand for that node, is different from automotive woes...