Hello friends, this time I want to make an article that answers some of the questions made by one of the professors at Crypto Academy @besticofinder, as for the questions from the homework given are:

1. How does crypto currency mining work?
2. What is Mining Difficulty?
3. What are the challenges for crypto currency miners?

So I will answer one by one these questions.

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How Does Cryptocurrency Mining Work?

Mining for bitcoin is not the same as mining gold, silver and other precious metals. However, to mine bitcoin special treatment is needed, because bitcoin is a virtual currency that can only be mined using a computer with certain specifications so that mining runs smoothly. Anyone can become a Bitcoin miner without exception.

The way mining works is that the parties who act as recorders of the transaction will run the same computer program. The program will form a peer to peer network. Then the recorded information will later be distributed throughout the bitcoin blockchain network. Transactions that occur will be grouped into different blocks. Then the bitcoin miner has to guess some characters. This character is called the hash that each block has. Each block has a hash of the previous block. In addition, the block has a new hash for bitcoin miners to guess. Once the hash is cracked, the miner can add blocks to the chain and get Bitcoin.

What is Mining Difficulty?

The biggest hurdle right now in my opinion is that more and more new Bitocin miners have sprung up, this causes more competition to mine Bitcoin on each block. At the beginning of Bitcoin launched, each miner will get a reward of 50 BTC for cracking the hash, whereas now each miner can only get around 6.25 BTC for each block if successful in breaking the hash and the reward received will decrease every year as it grows. the new Bitcoin miners especially during the Covid-19 pandemic where everyone started to become Bitcoin miners because they had to be always at home.

What are The Challenges For Cryptocurrency Miners?

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The challenge that Bitcoin miners must face is patience, because I see a lot of BTC miners who can't wait to get rewarded quickly, even though our computers need time to crack the hash / encryption code in order to get the reward. Then there are a few more things that bitcoin miners should look at, namely the level of security that is vulnerable to being hacked. It is common for us to hear that often Bitcoin miners lose their rewards because they are stolen by irresponsible people, so as Bitcoin miners we have to be good at protecting our crypto assets from being stolen by others, the way can be by storing them in a walllet that has a level high security or something.

Conclusion

I really support you if we want to become Bitcoin miners, because indeed being a BTC miner is a very unique thing to do in modern times like today. However, we also have to be vigilant from all the crimes that exist in the world of crytopcurrency, don't be easily fooled so that we lose the rewards from our mining results.

Thanks for coming to my blog.
See you on next post!

CC: @besticofinder
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