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Because of its speed, the spaceship and each speck of paint will travel nearly a three-hundredth of a millimetre for every million vibrations. Think of the spaceship as leaving a line of dots in space, nearly a three-hundredth of a millimetre apart. As the spaceship approaches the black hole, and its speed increases, the distance between consecutive dots will increase.
When an observer on Earth sees the spaceship, it will still appear green when the spaceship is a good distance from the black hole. This is because the extra time that the light takes to travel the distance between dots in not enough to alter its colour. However, once the spaceship it travelling quickly, the dots will be further apart and the extra time taken for the light to reach Earth will cause the ship to appear first yellow, then red. The observer on Earth, knowing that yellow and red light are produced by slower vibrations than green, will assume that time is slowing down for the spaceship. In the limit, when the dots are very far apart, the light will be very faint radio waves and the observer on Earth will think that time has almost stopped on the spaceship.