How Does the Difficulty Adjustment Prevent a “Mining Death Spiral”?

A "mining death spiral" is a hypothetical scenario where a sudden drop in a cryptocurrency's price causes a large number of miners to leave the network. This leads to a decrease in the hash rate and a longer block time.

The difficulty adjustment mechanism prevents this by automatically lowering the mining difficulty, making it easier for the remaining miners to find blocks. This ensures that the network continues to function and produce blocks, preventing a complete collapse.