As Bitcoin continues to drop the worry of the digital asset fading all the way to nothing has become prevalent in the cryptocurrency community. However, some experts are saying that the digital asset has a built-in safeguard to prevent it from crashing the way to zero.
Andreas Antonopoulos is a tech entrepreneur, academic professional at the University of Nicosia and he has been trying to pull worried Bitcoiners back off the ledge. He recently appeared on a popular cryptocurrency YouTube channel and said that the difficulty of mining being adjusted will allow miners to bring a lot of relief to the bleeding Bitcoin market.
“If they wait until the difficulty retargets and the difficulty becomes less, then each miner who waits makes more profit because in the new scheme they have a greater percentage of the mining power than they did before,” he said in a YouTube interview. “Let’s say if the mining power drops by 50%, the miners who stick around and wait for the difficulty to retarget are now twice as profitable after the retargeting… that’s a pretty good incentive to stick around.”
Anthony Pompliano is another Bitcoin advocate that thinks the currency’s design allows it to pull through these long bear markets.
“Bitcoin has been through these major declines and bear markets before. It is an anti-fragile asset. The system is designed in a way that allows for course corrections, in both directions, based on market conditions. Simply, bitcoin was designed to survive.”
The going has been tough for miners recently as shown by industry leaders like Giga Watt filing for bankruptcy. Many mining pools have shut down and the crash has brought the entire mining community to a waiting period. Despite the tough times for miners, experts are still confident that the market will rebound after in part due to the 15% drop in mining difficulty.