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 <h2 data-ct-widget="explained-block-title" id="what-is-helium-mining">What is Helium mining?</h2>
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 <p><em>Helium mining is the mechanism that powers the Helium network to provide global wireless technology for Internet-of-Things devices.</em></p>
 <p>Helium involves running a hotspot to provide coverage for <a href="https://cointelegraph.com/learn/the-internet-of-things-iot-a-beginners-guide" rel="noopener noreferrer nofollow">Internet-of-Things (IoT)</a> devices via the Helium Network. Miners are required to run specialist hardware devices to create wireless connectivity.&nbsp;</p>
 <p>The hotspots build a decentralized infrastructure of low-powered, long-range wireless networks known as “The People’s Network.” It is an innovative use of <a href="https://cointelegraph.com/learn/how-does-blockchain-work-everything-there-is-to-know" rel="noopener noreferrer nofollow">blockchain technology</a> that incentivizes the creation and maintenance of a global wireless network through Helium (<a href="https://cointelegraph.com/helium-price-index" rel="noopener noreferrer nofollow">HNT</a>) token rewards from mining.</p>
 <p><img alt="Hotspot map" src="https://s3.cointelegraph.com/storage/uploads/view/4bb77cb9c491cdb653f2c35939879f4b.png" title="Hotspot map"></p>
 <p>The <a href="https://cointelegraph.com/news/what-is-a-helium-miner-and-how-does-it-work" rel="noopener noreferrer nofollow">decentralization of wireless infrastructure</a> reduces the reliance on traditional telecom providers and lowers the cost of IoT connectivity. The Helium project showcases the true versatility of blockchain tech, expanding its application beyond financial transactions into real-world infrastructure. It’s a potential revolution in wireless technology, representing a paradigm shift in the future of decentralized infrastructure.&nbsp;</p>
 <p>For users of the world’s largest contiguous wireless network, it gives wider coverage, allowing devices to communicate 200x further than WiFi.&nbsp;</p>
 <p><em><strong>Did you know?</strong> The Helium network started development in 2013 by Helium Inc. It was a network of low-range hotspots that were installed in concentrated areas with building owners paid in fiat currency. It switched strategy in 2017 to offer individuals payment in crypto to run nodes in homes and offices. Since then, Helium Inc rebranded to Nova Labs in 2022 and received $200 million in investment funding.</em></p>
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  <h2 data-ct-widget="explained-block-title" id="how-helium-mining-works">How Helium mining works</h2>
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  <p><em>Helium mining uses a proof-of-coverage (PoC) consensus mechanism to verify hotspot validity, confirm payments, and secure the blockchain network.</em></p>
  <p>The core mechanics behind Helium mining are devices that combine a wireless gateway and a <a href="https://cointelegraph.com/learn/what-is-a-bitcoin-node-a-beginners-guide-on-blockchain-nodes" rel="noopener noreferrer nofollow">blockchain node</a>. This hardware performed two key functions: validating transactions on the helium blockchain and providing wireless network coverage.&nbsp;</p>
  <p>Helium uses a unique consensus mechanism called proof-of-coverage (PoC) to maintain the protocols on the blockchain. This mechanism verifies that hotspots are providing legitimate wireless coverage and rewards them in HNT tokens for their services. To be a valid participant on the network, Helium miners must solve random quizzes and communicate with other nodes to verify and confirm the answer, which relates to their network location.&nbsp;</p>
  <p><img alt="Unmounted RAK Helium miner" src="https://s3.cointelegraph.com/storage/uploads/view/0a960a76f9b8e644e4a7808309a32adc.png" title="Unmounted RAK Helium miner"></p>
  <p>For example, a hotspot in a large city might provide network coverage for smart meters or environmental sensors. In return, it earns HNT based on the data transmitted through the hotspot.</p>
  <p>The Helium mining hardware, referred to as a hotspot, is the backbone of the network. Traditional 4G and 5G connectivity requires big intrusive cell towers, often unwanted in many communities. Contrastingly, Helium hotspots are compact and decentralized, allowing anybody to operate or connect to the network.</p>
  <p>These hotspots run using the Low Power Wide Area Networking Protocol (LoRaWAN), which was built from a leading wireless invention called LongFi.</p>
  <p><em><strong>Did you know?</strong> Helium’s network supports a wide range of applications, from smart agriculture to environmental monitoring to asset tracking and smart buildings. It shows a broad potential for becoming one of the first worldwide <a href="https://cointelegraph.com/explained/decentralized-physical-infrastructure-network-depin-explained" rel="noopener noreferrer nofollow">decentralized physical infrastructure network (DePIN)</a> blockchains.</em></p>
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  <h2 data-ct-widget="explained-block-title" id="benefits-of-helium-mining">Benefits of Helium mining</h2>
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  <p><em>Financial incentives and low barriers to entry encourage scaleable widespread participation in the network, thereby accelerating the growth of IoT global connectivity.</em></p>
  <ul>
   <li><strong>Decentralization: </strong>Helium mining removes the need for centralized telecom infrastructure. This helps to reduce data costs and increases accessibility. This democratizes network access, even making it easier and cheaper for small businesses to run IoT solutions. This, in turn, builds market competition, learning to provide better service and lower user costs.&nbsp;</li>
   <li><strong>Low power usage:</strong> Hotspots have a very low power consumption level, making them both cost-effective and environmentally friendly. This encourages more individuals and entities to join the network. The more hotspot providers, the more robust and reach the network attains. Plus, environmental benefits make Helium an attractive choice for eco-conscious operators and users.</li>
   <li><strong>Scalability:</strong> The network is easy to expand as more hotspots are added, meaning the network can grow organically without significant investment in infrastructure. The Helium network is flexible and quickly adapts as demand spikes in new areas or use cases. It also enables coverage to grow alongside the increasing number of IoT-connected devices without huge degradation in performance.&nbsp;</li>
   <li><strong>Incentive: </strong>Hotspots earn HNT as a financial motivation to be a valid wireless coverage provider. It’s a powerful driver in network growth and adoption as it encourages more people to run hotspots. This creates a self-sustaining network ecosystem where earning potential is driven by increased data demand from users. The economic model means there is strong support to grow the network and balance rewards with Helium mining equipment ROI.</li>
  </ul>
  <p><em><strong>Did you know? </strong>DePINs provide an exciting bridge between the physical and digital blockchain worlds. It allows data and tangible assets like bandwidth, GPUs or real estate to be tokenized in a decentralized fashion.</em></p>
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  <h2 data-ct-widget="explained-block-title" id="current-profitability-of-helium-mining">Current profitability of Helium mining</h2>
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  <p><em>In the right circumstances, Helium network mining income can be profitable, especially when you have a location with hundreds of IoT devices and low competition from other hotspots.</em></p>
  <p>Is Helium mining profitable? Like any <a href="https://cointelegraph.com/learn/what-are-the-different-ways-to-mine-cryptocurrency" rel="noopener noreferrer nofollow">cryptocurrency mining</a> operation, it comes down to investment and returns. To work out Helium mining return on investment (ROI), you need to factor in Helium mining setup and costs, including hardware and electricity requirements. Then subtract this from your likely rewards. You can use the <a href="https://explorer.helium.com/stats" rel="noopener noreferrer nofollow" target="_blank">Helium Explorer</a> for information on HNT prices, rewards and network demand.</p>
  <p>There’s no exact formula to work out how much HNT you can earn over a specific period. That being said, there are some main concepts to understand to improve your profitability.&nbsp;</p>
  <p>So, how much can you earn with Helium mining? Well, daily rewards for hotspots have been known to vary wildly between $0 and $300 per day. You can play around with the Helium mining calculator to get a rough <a href="https://helium.plus/earnings-calculator" rel="noopener noreferrer nofollow" target="_blank">estimate</a> of earnings.&nbsp;</p>
  <p>The top-earning hotspots have the ability to provide data to hundreds of devices per day. This requires a high-density population (or device) area that doesn’t have high competition from other miners. These could be locations like large stadiums, business centers or university campuses.</p>
  <p>Adding to this, elevated areas like rooftops offer the ability to deliver wide, uninterrupted coverage in your area. Contrastingly, a low-density area where the hotspot simply runs from a ground-floor window is unlikely to be a profitable mining operation.</p>
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  <h2 data-ct-widget="explained-block-title" id="factors-affecting-helium-mining-profitability">Factors affecting Helium mining profitability</h2>
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  <p><em>Helium mining in 2024 can still be profitable in selected areas and with 5G upgrades, but this is highly influenced by miner location, HNT price and equipment costs.</em></p>
  <p>As the network matures, potential miners should assess the factors below and consider both initial costs and ongoing network demand to make informed decisions.</p>
  <ul>
   <li><strong>Network saturation and device location:</strong> Urban areas are often saturated, lowering rewards, while rural locations may be profitable amid less competition.</li>
   <li><strong>5G transition: </strong>The shift to 5G mining requires specialized, expensive equipment but offers new earning opportunities outside of IoT.</li>
   <li><strong>HNT price volatility:</strong> Mining profitability is tied to HNT’s market value, with high prices boosting rewards (in dollar terms) and low prices potentially affecting earnings.</li>
   <li><strong>Energy and equipment costs:</strong> Helium hotspots are energy-efficient, but 5G devices carry higher initial costs and may require more maintenance, especially for new entrants.</li>
   <li><strong>Demand for helium network coverage: </strong>As IoT and 5G usage expand, network coverage demand may increase, potentially boosting miner rewards and overall profitability.</li>
  </ul>
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 <div data-ct-widget="explained-block" id="explained-block-159625-0">
  <h2 data-ct-widget="explained-block-title" id="future-outlook-of-helium-mining">Future outlook of Helium mining</h2>
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  <p><em>Earning potential with Helium mining and network developments will shape the long-term viability of Helium mining.&nbsp;</em></p>
  <p>HNT’s market prices play a factor in its growth. More IoT devices relying on the network will help drive positive HNT prices and payouts for miners.&nbsp;</p>
  <p>However, low usage and depressed market prices can present a challenge for many Helium miners to make any more. And with robust Helium mining rewards, the network could thrive.&nbsp;</p>
  <p><img alt="Helium Network's usage is steadily growing" src="https://s3.cointelegraph.com/storage/uploads/view/c729790ba4c0a4d2eae925c090e2d51a.png" title="Helium Network's usage is steadily growing"></p>
  <p>Is Helium mining worth it? Network usage shows steady growth through 2024. This is coupled with a growing market capitalization of over $1 billion for HNT, helping the token price rise from $2 to over $6 as of November 2024.&nbsp;</p>
  <p>These two elements paint a positive picture for long-term Helium mining profitability. Of course, cryptocurrency markets are volatile, so current profits from Helium mining can change quickly to affect network growth and Helium mining returns.</p>
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Is Helium mining still profitable?

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Cointelegraph

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