With the current downtrend of Bitcoin and the crypto market in general, a lot of crypto experts and enthusiasts do not see any bright future for #1 digital coin. The infamous prediction of John McAfee now seems even more far-fetched than before.
However, some people still have faith in BTC. A famous author of books about cryptocurrency and blockchain Andreas Antonopoulos made a video where he explained what a death spiral is and why it does not relate to Bitcoin so far.
According to Antonopoulos, a death spiral arises when the hashrate of the network drops.
Since it is directly connected with the mining complexity, the complexity also reduces together with profitability, causing miners to leave.
However, the author believes this is not the case with Bitcoin, since BTC miners do not react to such price jumps immediately. Their plans are usually calculated for the long-terms results. Only if Bitcoin keep dropping for a significant period of time, the danger of a death spiral may appear.
“Part of the reason that’s unlikely to happen is that miners have a much more long-term perspective, meaning that they have existing investments in equipment and they usually purchase electricity on long-term plans, they don’t pay it by the week,” says Antonopoulos.
Hopefully, the crypto author is right, because if miners start leaving the ecosystem of Bitcoin, the coin is doomed.
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