What Would Happen If Bitcoin Had No Difficulty Adjustment?
Without a difficulty adjustment, as more powerful miners join the network, the time it takes to find a block would continuously decrease, leading to an unpredictable and highly volatile block creation rate. This would cause a rapid inflation of the money supply, as blocks would be mined much faster than the intended 10-minute average.
The network's security would also be compromised due to faster confirmation times and less control over the supply schedule.
Glossar
Faster Confirmation Times
Latency ⎊ Faster confirmation times refer to the reduced duration required for a transaction to be included in a block and recognized as final by the network.
Average Block Time
Metric ⎊ Average Block Time is the mean duration required for a Proof-of-Work or Proof-of-Stake network to successfully validate and append a new block to the canonical chain, serving as a primary indicator of network throughput and transaction finality speed.
Bitcoin Protocol
Principle ⎊ The Bitcoin Protocol establishes the foundational ruleset for the peer-to-peer electronic cash system, dictating the creation and transfer of the native digital asset.