Crypto Academy Week 4 (Homework) Post For Professor @besticofinder by @mikejenseen Introduction to Cryptocurrency Mining (Lesson 4)
Hello Everyone.........
This time I will try to complete the homework given by the professor @besticofinder, The question is :
- How crypto currency mining works ?
- What is mining difficulty ?
- What are the challenge for crypto currency miners ?
How crypto currency mining works ?
Cryptocurrency that we know is digital currency, in contrast to conventional currency, this currency is used for virtual or internet-based transactions. Bitcoin miner is a process of leveraging transactions on blockchain. Cryptocurrency mining is not only carried out by individuals or companies but is carried out by thousands of computers in the world, usually miners are paid a transaction fee to create a block of validated transactions into blockchain. Miners also have the opportunity to get lots of bitcoins which can be used for other transactions or as investments.
What is mining difficulty ?
The difficulty of mining bitcoin is that we must be able to consider the risk of loss What is obtained from mining bitcoin is because of course we will spend a lot of capital, such as buying expensive computer equipment and very high electricity consumption costs. Therefore we must be able to predict the benefits we will get from mining bitcoin. So I can conclude the difficulties of mining bitcoin namely; complicated to operate and the capital that must be spent is also large.
What are the challenge for crypto currency miners ?
Every year cryptocurrency miners are increasing so that the imbalance received is getting more and more, so it will benefit individuals with a decent investment, because miners are increasing, competition is getting tighter so that there are miners who do several ways to increase the crypto assets of other miners, especially miners who new to the world of cryptocurrency, therefore the level of security of our crypto assets must be considered carefully.
Another challenge for cryptocurrency miners is that they have to provide a computer device that has good specifications, so it costs a fortune. By having expensive computer equipment, of course we also have to keep it safe from theft, besides that we also have to be able to consider the high consumption of electrical energy, we must be able to calculate the consumption of electrical power and the benefits we get, mining is complicated and expensive, but if we do. do it right then we will benefit greatly from mining cryptocurrency.
Maybe this is all I can explain on this week's homework. Hopefully my writing is easy to understand for readers. If there are mistakes in my writing or explanation, I hope that a lot of input from all of my friends.
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Hello @mikejenseen.
Thank you for submitting homework task 4 ! You have discussed all the three topics really well ! Good job [6]
Thank you