Yeah if it happened literally overnight the rate of btc being produced would increase temporarily until the difficulty adjustment kicked in. This is just a thought experiment though.

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The difficulty adjustment has an upper & lower max change limit for every 2016block period if I'm not mistaken.

This adds a nice wrench into the thought experiment that I think is fun to ponder.

Oh I didn't know that, interesting

-75% <--> +300%

Max change for 2016 block period.