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Does the mining process starts all over again and I loose all the work my machine has done or does it start from where it get disconnected and do I get the rewards for that?

1

If your internet cuts and you continue to mine you could fork the chain. That means your found blocks are irrelevant when you gets back to the network.

Even if your chain isn't forked after in a short cut your found block has a weak chance to be considered as an uncle.

  • So even if the internet gets back online in 5 minutes, will it still not be able to provide POW and get the reward? – Jatin Jindal Jun 19 '17 at 5:34
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Yes, the mining will continue even if the internet goes off. But if you don't have internet your miner will not be able to communicate to the network and submit the Pooof of Work hence it will create a fork in the network. So nobody knows that you have mined but you, which is useless and will not earn you reward.

Mining makes no sense if you are in a small office/personal purpose computer. It will mine, but you will not get any rewards because the process is computationally difficult and there are powerful machines doing the same task.

Check Mining 101 and Mining profit calculator

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