What is Helium Mining? How Does Helium Mining Work?
What exactly is the mining of helium? Have you ever heard of or come across the Helium Network? Bitcoin and many alternative cryptocurrencies, such as Ethereum and Litecoin, have garnered a lot of attention in recent years. The Helium cryptocurrency, also known as HNT, is yet another alternative coin that has been in existence since 2017. According to its developers, HNT can provide a decentralized wireless infrastructure through its many hotspots, which would allow it to power the Internet of Things.
One of the numerous ways that I bring in passive money now is through the utilization of a Helium hotspot. In this essay, I’ll be covering topics such as what helium mining is, how it works, whether or not helium mining is worthwhile, and how you can get started mining helium on your own! Continue reading to learn everything there is to know about the helium mining industry.
The Helium Network is known as what exactly?
The Helium Network was initially established in 2013 under the name Helium, Inc. with the goal of forming partnerships with company proprietors so that Helium could install their LoRa gateway hotspots in exchange for traditional forms of fiat cash. In 2017, when funds were running low and Helium was on the verge of collapse, the company decided to reward consumers for placing hotspots in their homes with bitcoin rather than traditional cash. On July 29, 2019, the official launch of the Helium Blockchain occurred, and it was an overwhelming success. Even in the present day, people are still purchasing hotspots in order to accumulate Helium coin, also known as HNT. In 2022, Helium changed its name to Nova Labs Inc. and successfully solicited capital of $200 million.
The Helium Network is a decentralized network that sends and receives data to and from the Internet utilizing low-power smart gadgets as its nodes. People make the decision to purchase hotspots or miners so that they can accumulate incentives in the form of helium tokens, which are abbreviated as HNT. A Helium mining device is compact enough to set up in almost any location, and anyone can set up as many hotspots as they want as long as there are spaces available for them to do so.
What precisely is helium?
In common parlance, the Helium Network is simply referred to as Helium. Tokens of the Helium cryptocurrency are referred to as HNT, while the term Helium itself is also sometimes used interchangeably. The cryptocurrency is just given as a reward to owners of Helium hotspots for doing certain acts with their hotspots, such as providing coverage and verifying the Helium Network. The coin is not required for the wireless network itself.
What exactly is mining for helium?
So, what exactly is the mining of helium? Mining on the Helium Network is what’s known as helium mining, and it’s the process through which users earn Helium coins, also known as HNT. The Helium Network’s hotspots perform the function of nodes and contribute to the provision of a decentralized wireless network. The HNT is protected in a number of different ways, all of which will be explained in more detail below.
Hotspots for the mining of helium are the locations at which individuals can earn helium tokens. On the global map, each hotspot is located in the hex that corresponds to its own unique position. These hexes are very specific.
What exactly is a hexavalent helium?
A Helium hex is the unit of division that the Helium network uses to categorize geographic areas. The area of one Helium hex is equal to 0.74 square kilometers. Here on this Helium mining map, you’ll be able to locate your very own hex. If you take a look at the hex in which you intend to install your Helium hotspot, you will be able to tell whether or not the region you are in is oversaturated, completely empty, and a number of other things. It is recommended that you position your Helium miner on an empty hex, but in close proximity to other hexes that have hotspots. This will allow you to achieve the highest potential transmit scale while simultaneously transmitting to the greatest number of Helium hotspots.
Where can I purchase a helium miner, and how?
On the Helium website, you will find a number of different authorized hotspots that are available for purchase. Bobcat, FreedomFI, and MNTD are three of the most well-known names in the industry. The community as well as the Helium Manufacturing Oversight Committee has given their blessing to each and every one of these. It is essential that you conduct your own investigation, as the fact that a hotspot has been authorized by the Helium Network does not necessarily mean that the location is suggested or endorsed.
The only form of payment that is accepted by the most, if not all, of these approved makers of Helium hotspots is bitcoin. I used the Coinbase exchange to purchase a Bobcat 300, and the seller was willing to accept USDC payments. Make it a point to educate yourself on the precise procedure for sending cryptocurrency to the appropriate address; otherwise, your money will be lost on the blockchain.
Should I Invest in Used Helium Miners that are on the Market?
Purchasing new or used hotspots from a reseller is fraught with peril and amounts to a game of chance. There is no way that you will be able to use the hotspot in any capacity if it has been activated in any form, and the vendor must officially transfer ownership of the hotspot to you before you may use it. Make that the vendor transfers the Helium hotspot to you in the correct manner by following the instructions outlined in this section.
Be sure to check the Helium deny list before purchasing a used helium miner that’s been put up for sale and see whether it’s on there. Due to the fact that these hotspots have in the past attempted to defraud the system and steal HNT, they will not receive any helium tokens as a reward for being on the network.
When transferring ownership of a hotspot to a new owner, it is important to keep in mind that the previous owner is responsible for paying the 55,000 DC hotspot transfer cost. The transaction of changing who owns a hotspot is recorded on the blockchain and cannot be undone.
How does the mining of helium take place?
Your Helium miner can participate in the Helium Network in a number of different ways, each of which offers the opportunity to earn rewards. The proof-of-concept challengees, the proof-of-concept challenger, witnesses, the consensus group, network data transfer, and security are among these. After you have set up your Helium hotspot, you will not need to take any more steps in order to take part in any of these activities because your Helium hotspot will automatically take part.
The Economic Value of Helium Mining
Where you live has a significant impact on how profitable it is for you to operate a helium miner. There are several locations that have reached their capacity and will not generate a significant amount of revenue. On the Helium hex map, locations that have a handful of hotspots per hex are likely to be the most profitable. This is because you won’t have to divide your transmit scale amongst the many hotspots in your hex, but you’ll still enjoy the benefits of having numerous hotspots to send signals to. For the purpose of this piece, I will discuss the revenue generated by helium mining in two distinct regions across the United States.
Cost of Mining for Helium
The initial investment needed to begin helium mining might range anywhere from $400 to $1,000. My own investment in my Bobcat 300 miner was approximately $500, and the antenna cost me $50. This antenna was used by me here at this location. Although this is a significant initial investment, it is essential to keep in mind that this miner will result in passive income with only a small amount of money spent on energy.
What Factors Influence the Profitability of Helium Mining?
The next most important factor in determining how much money you can make with a helium miner is its placement. After that, the amount of money you can make depends on how far your hotspot antenna can reach to other hotspots and how high your hotspot antenna is. You can probably guess that the higher in elevation your antenna is, the fewer obstructions it will encounter, and the more it will be able to send signals to other hotspots, so proving that it has coverage and earning it a higher Hotspot Networking Tool (HNT) score.
Profits Derived From Helium Mining
Listed here are the profits made by a helium miner in Los Angeles, California over the course of the past 30 days. As of the end of July, the price of one HNT token was around $9, therefore this miner made $4.59 every 30 days, which is equivalent to $0.15 each day. On the Helium website, you are able to monitor statistics such as the amount of Helium that your hotspot has mined over the past couple of days, as well as its activity, the hotspots that it has seen, and hotspots that are nearby.
On the other hand, this place on the outskirts of Indianapolis, Indiana, is a popular destination. Over the course of the last month, this miner made $54.40, which is equivalent to approximately $1.81 per day. That amounts to a passive income of $660.65 per year!
Is the Mining of Helium Worth It?
Helium, like any other cryptocurrency initiative, is not without its share of potential pitfalls. Helium is not supported by any central authority, and the price of the Helium token, HNT, is determined solely by market forces of supply and demand in addition to market speculation. This can be purchased with Bitcoin or any other cryptocurrency for the same price.
Whether or not you think there is a future for cryptocurrencies and, more specifically, their decentralized wireless networks is the single most important factor in determining whether or not mining Helium is worthwhile. If you reside in an area that does not have as many hotspots as other areas, investing in a Helium hotspot can be worthwhile because it generates cash without any effort on your part and uses less than 5 watts of electricity. However, there is a startup cost associated with helium mining, and if the mining process is not streamlined, it may take years to recoup the initial investment in the hotspot.
How to Get Started with the Helium Miner
As soon as you have received your miner from your supplier, it is time to connect your miner to the Helium Network! To get your Helium miner up and running, follow these steps.
1. Get the Helium app on your device.
2. Navigate to Hotspots and then click the plus sign. Pick out your preferred brand of hotspot from the options presented here.
3. Proceed with the procedures provided on the Helium app, plug in your hotspot, and connect it to the Internet. Be certain that the antenna that is linked to your hotspot has an unobstructed view of both its immediate surroundings and the sky above.
4. It is possible that you will need to keep the hotspot plugged in for some time before it will be able to connect to the Helium Network. This will depend on the brand of hotspot that you purchased. In my case, I had to wait for a few hours before I could get my Bobcat 300 miner.
5. Once you have successfully joined, you will be given a set of 12 words that you are need to write down in order to ever successfully log in to Helium or withdraw any of your money. Be careful not to misplace or forget these words!
And that wraps things up! You can earn Helium cryptocurrency tokens by transmitting signals and witnessing other hotspots. To get started, you should get started transmitting signals.
Helium News
In October 2021, Dish made the announcement that it would be partnering with Helium to offer its customers decentralized wireless 5G service. Helium was recently accused of lying about suggesting that Lime and Salesforce were using their network to power many of their devices. This accusation came shortly after Helium made the claim. Following this, Helium promptly removed Lime and Salesforce from their website without providing any other explanation.
After hearing what Lime and Salesforce had to say, Helium said that they will implement a more stringent review procedure for anything that could be genuinely regarded a brand relationship. The company has received its fair share of both favorable and negative news.
Helium Extraction: Some Parting Thoughts
Personally, I have my very own Helium hotspot, which I just recently put up so that I may begin making passive revenue from it. Even though it doesn’t bring in much money for me, I consider it more of a pastime and acquire HNT with an eye toward speculation. The concept of a decentralized wireless network has a great deal of application, but cryptocurrencies as a currency in its whole is still subject to a significant lack of regulation and raises more problems than it does answers. Will you start mining Helium? Please share your thoughts with me in the section below!
