Bitcoin’s mining difficulty dropped 15.1% yesterday. This means it requires 15.1% fewer hashes to mine a new Bitcoin block than it did the day before.
The last time Bitcoin’s mining difficulty dropped so much was Oct 30, 2011 when it dropped 18%. At the time, Bitcoin was trading at roughly $2 USD. Within 60 days from the mining difficulty drop, Bitcoin was trading over $5.
The genius of Bitcoin’s mining difficulty adjustment is that every drop in difficulty gives previously unprofitable miners new life. When mining difficulty goes down, it becomes easier and more profitable to win block rewards.
This mining difficulty drop tells us that cost of producing one bitcoin lies at around the current price which is 4000 USD. Can we expect to see further price decreases and hash rate dropping further? Or is this the bottom? Let us know your thoughts in the comments.