Bitcoin Miner Death Spiral (Coming Soon?)
𝐆𝐄𝐓 𝐓𝐇𝐄 𝐁𝐈𝐓𝐂𝐎𝐈𝐍 𝐂𝐎𝐔𝐑𝐒𝐄➜➜➜
https://www.trader.university/courses/38824-the-ultimate-guide-to-bitcoin
Use the discount code YT99 to get the best price.
In this video, I discuss the theoretical mechanics of a Bitcoin miner death spiral, and how Bitcoin's difficulty adjustment helps to guard against this possibility.
When more Bitcoin miners join the network and Bitcoin blocks are produced in under 10 minutes, the difficulty of finding the next block increases.
When Bitcoin miners leave the network and hash rate drops and block time moves over 10 minutes, the difficulty adjustment makes it easier to find the next block.
This difficulty adjustment happens every 2016 blocks and uses the previous 2016 blocks to calculate average block time.
Bitcoin's difficulty adjustment not only prevents mining Bitcoin from ever becoming too unprofitable, but it also helps to ensure a fairly constant issuance rate for new Bitcoin. It is one of Satoshi's many strokes of genius.
This mechanism was stress-tested in the summer of 2021 when China banned Bitcoin mining and 54% of the miners unplugged from the network. Bitcoin continued to work normally, in spite of this massive disruption.
Unlike other crypto, Bitcoin is designed to withstand nation-state attacks like this one.
The difficulty adjustment ensures that energy prices that are "too high or too low" will never be able to interfere with Bitcoin mining. Even if Bitcoin fell to $1, the network would adjust to incentivize Bitcoin miners to keep mining.
Not investment advice! Consult a financial advisor.
My favorite Bitcoin dashboard:
https://bitcoin.clarkmoody.com/dashboard/
Endless miner death spiral FUD:
https://coinpedia.org/opinion/will-bitcoin-price-plunge-more-from-a-miner-death-spiral/
https://www.financemagnates.com/cryptocurrency/news/has-the-bitcoin-mining-industry-entered-into-a-death-spiral/
https://www.wired.co.uk/article/bitcoin-crash-death-spiral-cost-of-mining
Bitcoin difficulty adjustment kicks in after China mining ban:
https://www.cnbc.com/2021/07/03/bitcoin-mining-difficulty-drops-after-hashrate-collapse-in-china-.html
Historical chart of Bitcoin hash rate:
https://www.blockchain.com/charts/hash-rate
Check out my online trading courses:
https://www.trader.university/join
Use this secret coupon code to get a discount: YT99
Check out my Amazon best-seller, "A Beginner's Guide to the Stock Market":
https://www.amazon.com/Beginners-Guide-Stock-Market-Everything-ebook/dp/B07S31TBF5
I am not being paid or otherwise compensated by any company or cryptocurrency project that I mention in my videos.
My opinion is not for sale. Please do not contact me with any affiliate or advertising deals.
#bitcoin
#bitcoinmining
#crypto
Disclaimer
Neither Trader University, nor any of its directors, officers, shareholders, personnel, representatives, agents, or independent contractors (collectively, the “Operator Parties”) are licensed financial advisors, registered investment advisors, or registered broker-dealers. None of the Operator Parties are providing investment, financial, legal, or tax advice, and nothing in this video or at www.Trader.University (henceforth, “the Site”) should be construed as such by you. This video and the Site should be used as educational tools only and are not replacements for professional investment advice. There is a high risk in trading.
-
6:48
Matthew Kratter's Bitcoin University
10 months agoSatoshi's Sneaky Supply Schedule (Bitcoin)
1K7 -
LIVE
Donald Trump Jr.
2 hours agoTrump Rally Live From MSG
10,032 watching -
LIVE
Benny Johnson
2 hours ago🚨LIVE NOW: Triumphant Trump's HISTORIC NYC Hero's Welcome at PACKED Madison Square Garden Rally
5,767 watching -
LIVE
Michael Franzese
1 hour agoThe Mafia Isn’t Dead — It’s Running the Government | Deep Dive
475 watching -
LIVE
GamingWithHemp
4 hours agoCall of Duty BO6 Zombies episode #2
850 watching -
5:26
Fore Play Golf
1 day agoHow Tour Pros Talk To Themselves When Hitting Big Shots
21K -
3:21:49
Pepkilla
4 hours agoDay 3 Blackops 6 Camo Grind
29.2K4 -
LIVE
Major League Fishing
4 days agoLIVE! - General Tire Team Series: Patriot Cup - Day 3
195 watching -
1:05:13
The Tulsi Gabbard Show
6 hours ago $19.68 earnedStand With Women w/ Riley Gaines & Tulsi Gabbard
50.3K55 -
1:05:43
Athlete & Artist Show
1 day agoHow Vladimir Putin Ended Mike Commodore's Career, Putting Mike Babcock Chapter To Rest
42.5K3