I don’t think this is really true at all.
A drop in difficulty means there is less hash power working on zec, nothing else.
The ‘supply’ of zec always remains constant, whether there are 1 or 100000 miners working on it.
I think this is something that is really getting lost.
It is not like real world mining. If you’re mining gold out of a hole in the ground, generally if you double the amount of diggers you have, you will double the amount of gold you get.
If all of us miners double the amount of equipment we have, guess what? We get exactly the same amount of coins.
This is why crypto mining is flawed.
The ‘demand’ for zec is measured at the exchanges. It relates to how many people are willing to buy zec with another currency… And as people are usually interested in what zec is ‘worth’ that means how many people are willing to buy zec with a fiat currency.
This has absolutely nothing to do with the difficulty.
At the present time, no one buys zec (or any other crypto for that matter) for anything other than investment and trading.
Miners don’t increase the price of zec, they sell zec not buy it.
Who exactly is buying your mined coins?
Until there is mass adoption of a crypto coin that real people can use, there will be no market for it.
This is the real crypto problem… Whilst there is a large price fluctuation there will be no mass adoption - which normal person will exchange thier fiat to zec, for it to be worth half in a month’s time? No chance.
The long term investors are taking a punt hoping one of the coins will eventually become stable and get adopted… But really, even if you could spend crypto in shops etc, why would the man in the street exchange his $ or £’s for zec, then spend zec? Why bother with the hassle?
Think I’m going off this whole crypto thing…