Hi @chaalee you have put a lot of efforts in exploring the whole topic.

You have chosen pi network example to explain the mining process. Actually it's mining is totally different than the bitcoin mining.

Different blockchain networks uses different mining methods as bitcoin uses proof of work PoW consensus and steem blockchain uses delegated proof of stake.

Indeed there are a lot of benefits and importance of mining cannot be denied as it is necessary to prove the transparency of the blockchain and to place the transactions in the blockchain ledger.

There are many challenges regarding the cryptocurrency mining and it is not an easy job. It needs a lot expenses and energy to mine. And market volatility affects mining the most.

On the whole you have tried to explain in q good way keep up the good work. Please have a look at my post. Thanks!