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Hello Everyone. I hope that you all are doing great. so i am here to complete Homework # 4 by @besticofinder which really helped me in increasing the knowledge about mining of crypto currency. before the lecture of @besticofinder i didn't have much knowledge about the mining of crypto but his lesson helped me a lot in understanding many things very easily and after his lecture every single thing about mining was cleared to me.
So i would like to give a huge shout-out to @besticofinder was guiding us in a very easy way.
so without wasting any further time let me start my homework.
Question No 01 : How crypto currency mining works ?
Answer:
Mining in crypto currency is done by using certain types of algorithm using machines. They perform very secure transaction and the best part is that it doesn't required any help from the government of your country. Now the question arise is that how the mining in crypto currency is done. So firstly it requires electricity in excess quantity so mainly people do it where their is electricity i kind of cheap. Secondly it has to be set at specific time like you want to mine in seconds, you want to mine in minutes, you want to mine in hours or even you want to mine in days. If we talk about the recent crypto currency which has a very great hype now a days that is PI you can mine on daily basis and a new comer can earn up to 0.10pi per hour which is about 2.4 pi per day. A user can withdraw their money when the amount reached at a certain position but it isn't that easy as it looks because for withdrawing you must know that how that particular asset mining works. Now i will tell you some types of minings.
- GPU Mining.
- ASCI Mining.
- Cloud Mining.
- CPU Mining.
Question No 2 What is Mining Difficulty ?
Answer:
**It is the process used in the measurement of mining a bitcoin. Difficulty here indicates how difficult is to solve any complex puzzle of crypto. Depending upon ne the number of people who are mining the difficulty increases and decreases .
Question No 3 What are the challenges for crypto currency miners ?
- The major problem is Expensive Electricity. If you are living in a country where electricity is expensive then it is the major problem you will faced is cost. As mining requires lots of electricity so if you are mining in the country where electricity isn't cheap then it is a problem for you. The formula in which mining works is difficulty = difficult target/current target.
- Crypto is the second name for chance. No one knows when the prices will go high or go low so there is a chance of losing all your money within a blink of an eye. This is also a major problem faced by the miners.
- You must make sure first that crypto currency is legal in your country or not because countries like Pakistan is facing lots of difficulties just because till now crypto currencies aren't legal here. Many people are working very hard so that crypto currencies become legal here and people can take advantage by using it.
Well that was all i am expecting that i have done my homework quite well. :)
Special Mention
@besticofinder
@steemcurator01
@steemcurator02