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The Helium network has seen increased adoption from digital savvy investors and ordinary internet users looking for a cost-effective internet service compared to the local internet service providers.
Growth of the Helium network
The number of helium hotspots has grown tremendously over the past year to surpass 632,000. However, setting up a Helium hotspot can pose a challenge to many because it is cost-intensive. The average entry price to set up a Helium hotspot is $400.
The earnings generated from these hotspots can also deter some from venturing into the process full time. One factor affecting prices is the population of the area where the hotspot is located. In densely populated areas. The HNT rewards can be significantly low.
Helium miners who want to maximize their returns from the activity need to set up the hotspots in less saturated areas but within the range of other Helium hotspots. Hotspots set up in locations that are too remote fail to have connectivity.
The amount earned by Helium miners is displayed on the Helium explorer page. The page shows that the rewards for miners differ depending on various factors, but the most conspicuous factor being the location.
A factor such as a hotspot’s location can also impact the miner revenue. For instance, a hotspot on a high-rise building can generate more HNT rewards. This shows that the hotspots function similarly to radio signals where the transmission can be blocked by a tall building.
However, despite the rewards not being as high as those who have invested in the installation would want, there are perks to owning these hotspots. At the top of the list is that there is no effort needed for the miner to generate rewards. This makes the hotspots deliver passive income for the miners.
One Helium token was trading at $20.62 at the time of writing, according to Coingecko. The token has gained by 330% during the past year. Miners that are bullish on the token and choose to hold have a chance to boost their earnings if the price maintains an uptrend.
Dealing with the high cost of one unit
As aforementioned, the high cost of buying one unit poses a barrier to entry to those who would like these hotspots. However, this is not the case globally, as there are regions where miners can acquire the equipment at lower costs.
FairSpot, a startup company based in the US, allows miners to buy their initial setup equipment on a rent-to-own basis. Out of the rewards generated by the miner, FairSpot takes 30%, while the miner will retain 70%. The ownership of the mining system will be transferred to the miner after 500 days of mining.
Those who wish to be considered for this funding have to provide their location details and prove their financial situation. The company claims to focus on inclusion and diversification in its user base.
The Helium network is also growing significantly. The network recently announced a partnership with Techtenna. The latter is a LoRaWAN network operator with a high density. Techtenna makes it end-to-end internet-of things easy for a wide range of applications.
The press release notes that Techtenna plans to deploy over 2 million devices by 2023. The devices will be adopted in multiple fields such as urbanization, environmental conservation and agriculture.
Ali is a freelance writer covering the cryptocurrency markets and the blockchain industry. He has 8 years of experience writing about cryptocurrencies, technology, and trading. His work can be found in various high-profile investment sites including CCN, Capital.com, Bitcoinist, and NewsBTC.