Crypto Academy Week 4 Homework Post for @besticofinder | Introduction to Cryptocurrency Mining Lesson 4

Hello all friends
How are you all?
Hopefully you will always be healthy and be able to do your usual activities with enthusiasm
So this time I want to do the homework given by professor @besticofinder, which is about mining cryptocurrency. The tasks given are:
(1) How Cryptocurrency mining works?
(2) What is Mining Difficulty?
(3) What are the challenges for crypto currency miners?

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For a discussion about mining cryptocurrency this time I will take Bitcoin as an example of mining cryptocurrency.

1. How Cryptocurrency mining works?

Just like mining minerals that are excavated in the soil, we need equipment to remove them from the bowels of the earth. The difference is, in bitcoin mining it is not physically visible, but in electronic form with a certain code that cannot be duplicated.

This method also applies to bitcoin mining where you have to crack a certain math code. Bitcoin does not appear physically, the way mining bitcoin works is very similar to gold mining. Bitcoin is in a protocol design, just like gold is underground. But bitcoins cannot be obtained without going through the process of cracking the code. Like gold that is underground, so it must be excavated with adequate equipment.

2. What is Mining Difficulty?

There are many mining nodes competing for bitcoin prizes / rewards. It's all luck and based on how big your computing device is. The higher the specifications and Hash rate issued, the greater the chance to get rewarded faster. This reward is not always obtained, because it is divided into several years where the value is now getting smaller.

The difficulty level of mining bitcoin is getting higher, taking an average of 10 minutes or more to process blocks. This time was required for bitcoin development to total the coins totaling 21 million.

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3. What are the challenges for crypto currency miners?

As I explained above, the biggest challenge in mining bitcoin is competition between miners which continues to increase, so there is a scarcity of coins that can be mined and forcing miners to increase the pace of their mining tools so they can get more bitcoins and feel the reward will be achieved.

Conclusion

In mining Bitcoin we must have high confidence that we will get profit from this mining process, because with the increasing number of miners now, the competition will be tighter, so we must continue to be strong if we want to become a reliable cryptocurrency miner.

CC:
@besticofinder
@steemitblog
@steemcurator01
@steemcurator02