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If the price drops too precipitously, and too many miners drop off at once, bitcoin enters a death spiral as the hashrate drops, and it takes so long to confirm
by empath75 9y ago
If the price drops too precipitously, and too many miners drop off at once, bitcoin enters a death spiral as the hashrate drops, and it takes so long to confirm blocks that the difficulty adjustment downwards just never happens, freezing the whole network.
- spuz 9y agoCan you elaborate on why the difficulty would not adjust downwards as transaction rates slow? That seems like quite a flaw in the design.
- pwinnski 9y agoThe difficulty would adjust down, but only when the next milestone is reached. The argument seems to be that if enough miners drop out, the next milestone might never be reached. That seems unlikely to me.