Very interesting article even if it is quite scary when one think about it.
If miners begin to dump and we start this death spiral, is there any mechanism that could prevent us from going to 0$?
Thanks in advance for your answer.
Sincerely,
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The mechanism is only mining difficulty adjustment. The rest is economics. It is an imaginary situation but on paper it may occur. The bitcoin network is designed to handle such situation by the law of economics with help of technology.
So if more miners quit, difficulty will lower and then they will need less power to mine every bitcoin making it at some point profitable ?
Did I get this right ?
Yes..right
Yes.. "lesser power"because less time will be needed to solve a block due to complexity reduction. Less time=less electric power.
Wow so it means there will be a 0.1% chance of mining bitcoin with my CPU lol, that will be interesting, but will never happen.
Worse case that can ever be is mining gets less profitable till it gets profitable again, satoshi is a smart ass...
Your explanation was super cool, now I know this.... Maybe you can explain Java to me as well because Im just not getting it😣😔