Why Bitcoin is Not in a Death Spiral, Refuting Reports

Over the past month, many reports about the materialization of a potential “death spiral” on the Bitcoin network were released, leading investors to be concerned about the short-term trend of the dominant cryptocurrency.

According to a security expert and cryptocurrency researcher Andreas Antonopoulos, a death spiral is unlikely to happen in Bitcoin.

What is a Death Spiral and Why it Likely Won’t Happen

On the Bitcoin network, miners find a block filled with transactions every ten minutes. After 2016 blocks are mined, the network automatically readjusts the difficulty of mining Bitcoin so that if there is less hash power on the network, miners can mine Bitcoin with lower difficulty, and if there is more hash power on the network, miners can mine the asset with higher difficulty.

A death spiral on Bitcoin refers to a situation in which the difficulty of the network fails to readjusts after 2016 blocks because the hash power of the network continues to fall at a rapid…