Helium Halving – Will Helium Mining Be Profitable in 2022
Helium Mining in 2022
Helium mining ($HNT) was first introduced in 2018, however, it didn’t pick up mainstream popularity until 2020. With a global crisis causing most people to stay inside and stare at their screens, all eyes were on Helium. The idea that you might make a pile of cash by plugging in a little “router thingy” at home has taken the internet by storm.
At the end of this article, I revisit the profitability that a cluster of hotspots in rural Wisconsin – in early 2021 was more than $3k/month.
Read our guide to learn about tips and tools to help make your Helium mining more profitable.
Due to a combination of hype and general supply chain issues, Helium Hotspot manufacturers are receiving an overwhelming number of orders. That is exactly the reason we’re talking about the profitability of Helium mining in 2022. A huge number of enthusiasts will not be receiving their Helium hotspot until the end of 2021.
- Is there too much network saturation?
- Are all the good spots already taken?
- Will my Helium hotspot be a “lone wolf”?
- What the the Halving?
How “Halving” impacts Helium Mining
It’s no secret that every 2 years the number of $HNT minted will decrease by 50%. The first halving of HNT took place on August 1, 2021. That means the 2.5M HNT is being minted per month instead of the 5M during every month prior.
With less HNT minted, there are fewer rewards for Helium hotspots that provide network coverage. But, don’t worry! It is expected behavior to receive only half of the HNT you normally would. With any luck, the scarcity may drive up the individual price of $HNT and restore previous profits.
The good news is that there will not be another halving for 2 more years.
With the current schedule, HNT will continue to be minted for another 50 years! Even though at year 50 only adds 3.6 HNT.
According to the Helium project, the first halving starts the ball rolling toward a lower network reward for mining and increased rewards for data transfer. This means that simply setting up a few hotspots in the middle of nowhere to farm HNT will gradually lose potency. Instead, more rewards are given to the Helium miners that actually get used by users spending Data Credits.
Luckily, when HIP20 goes into place the amount of HNT spent by the network to create Data Credits (DC) is put back into circulation on top of the scheduled amount for the current epoch. Because the price of DC is tied directly to the cost of USD, there is some stability added to the price.
Note: By the start of 2022 67% of all HNT have already entered circulation.
Which Helium Miner to Buy
Since the beginning of 2021, several new companies have become Helium Hotspot Vendors. See the table for the list of vendors, pricing, and shipping notes. For more information about maximizing Helium Hotspot profit, read this article.
| Price | Vendor | Protocol | Shipping |
|---|---|---|---|
| $429 USD | Bobcat | LoRaWAN | 12-20 Weeks from Order |
| (waitlist) | Cal-Chip | LoRaWAN | Aug-Dec 2021 |
| (waitlist) | FreedomFi | 5G | Sept. 2021 |
| $449-$899 USD | Kerlink | LoRaWAN | Fall 2021 |
| Out of Stock | LongAP | LoRaWAN | Shipped July 2021 |
| $498-$640 USD | Nebra | LoRaWAN | July-Dec 2021 |
| $409 USD | RAK Wireless | LoRaWAN | Fall 2021 |
| N/A | Sensecap | LoRaWAN | N/A |
| $650 USD | Syncrobit | LoRaWAN | N/A |
If you want to get a free Helium Mining Hotspot, learn about Hosting.
Profitability Trend of Mining Helium
Earlier this year I posted about a cluster of hotspots in Kiel, Wisconsin, USA. At the time they were earning over 290 HNT per 30 days. That amounts to over $3,000 USD at the previous price of HNT. Let’s check-in and see how they are doing today.
As of today, the price of HNT is down a bit from previous highs, but, it’s still quite good. Looking across all 8 of the hotspots that have been expertly placed in the region, the highest-earning more than $1k and the lowest at $100. The approximate value of the HNT by all miners is about $3800 USD per month.
Although there are more hotspots than earlier this year, the profitability is still insane! For many, this would be enough to replace ordinary income.
Keep in mind, this particular set of hotspots will likely need to migrate or go offline in the coming years unless more applications that use HNT move into the region.
Still Worth It?
Given the current price trends in HNT and the number of HNT still being mined successfully, I think 2022 will be an excellent year for Helium Mining. Because so many people are getting their miners in late 2021 there is crazy potential for an increased number of witnesses near your hotspot.
Yes. In my opinion, Helium is likely to be a decent choice for mining HNT for the next few years. However, once the rewards for simply existing in a cluster start to fizzle out, the real payday will be for the miners in highly populated cities or those lucky enough to be covering a large agricultural facility using HNT.
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What would be the next hot crypto mining after helium?
I do not mine many crypto. Primarily I enjoy Helium because it is quite different than regular mining. But, I also use Nicehash. If you want to learn more about nicehash, I wrote an article and created a video you should consider.
Why would covering a large agricultural facility be profitable? Not sure I follow.
Modern agricultural facilities have some seriously cool tech, some that are on the bleeding edge will use technology like LoRa and Helium. The reasons they might use these types of sensors are that Helium compatible sensors wireless and and have a huge range, depending on the topology it could be hundreds of meters.
It’s not unlikely that an agricultural facility might use 10’s or hundreds of sensors that communicate over LoRa or Helium network 24/7.
Since Helium payouts are larger for usage vs proof of coverage, the long-term money in Helium is being a “router” to industrial sensors.
What do you mean in your last paragraph about the real payday for those covering a large agricultural facility ?
Modern agricultural facilities have some seriously cool tech, some that are on the bleeding edge will use technology like LoRa and Helium. The reasons they might use these types of sensors are that Helium compatible sensors wireless and and have a huge range, depending on the topology it could be hundreds of meters.
It’s not unlikely that an agricultural facility might use 10’s or hundreds of sensors that communicate over LoRa or Helium network 24/7.
Since Helium payouts are larger for usage vs proof of coverage, the long-term money in Helium is being a “router” to industrial sensors.
Most information on Helium mining/coverage is related to US and Europe. What about countries that have no coverage at all. Would it be worth mining? im trying to understand more on helium and the network coverage. For example in Saudi Arabia there are no miners would it be worth doing as i don’t see how anyone may be utilizing the the signal ?
There are several sites you can use to estimate the value of your helium miner. If you’re in an area without other miners, a single miner will not be profitable. Instead, consider using several and spacing them out for optimum coverage. This will allow you to use your other miners as witnesses and increase profits for both.
Do any of these companies have these in-stock? I like that Bobcat unit but its like a half year shipping!
I’m still waiting for the two that I ordered from Nebra in April of 2021. Batch 5 – they will not give refunds, FYI
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