Okay so a few months ago I saw this growing project called the internet of things where people put hotspots in their house and u earn HNT from it. each miner/hotspot cost about $500aud each and I saw peoples ROI is about $200-500 a month. I decided to hop on and bought 10 miners to put at different locations around Sydney. But I am wondering what you guys think of this project and if its really worth the investment?
Is Anyone Doing The Helium Miner (HNT) Investment?
freebiemaster1902 on 29/09/2021 - 22:19
Comments
pfft
6 figures or nothing
I would but I need peoples houses to host it at which I don't
How could it possibly work as a business, if the coverage access points are paid $200-$500 a month. I can buy a 4G plan for a tiny fraction of that.
How many months have they paid you the $500 so far?It won't in the long run. They're not paying out $200-500 a month, they're paying out $200-500 worth of Helium. Right now they're in an expansion stage, there is a cap of 223 million Helium coins and they're creating huge amounts of them to anyone buying hardware and sticking it in the network (for example, they've minted 50 million in the last 12 months alone, worth about $1b. They sold $3m worth of credits on the network in the last 30 days. Kind of Uber levels of burning cash). The price of Helium is high because of the crypto bubble we're in.
The problem is they're using the crypto bubble to fund the network expansion without actually having a client base. So they'll build out tonnes of hardware, run out of Helium to pay people with as part of their expansion stage and will need to rely on people actually using the network for a profit to be earned. At that point, earnings will go from absurd amounts per month to 0.00001% a month with no way to get the capital investment back out. Likely the value of Helium will crash as well until people actually start using the network. Or it'll fizzle out because no one cares and we create the next 100 tonnes of ewaste in Helium hotspots.
Just sitting on the network isn't worth much either, delivering traffic or being near delivery points is what matters. A handful of companies are actually buying credit in this at the moment, so really you want to be somewhere between point A and point B of where they're sending data. If you could find those, you'd make a killing for a short period of time.
for example, they've minted 50 million in the last 12 months alone, worth about $1b.
Isn't this exactly what they say is wrong with central banks printing money? What guarantees is there of value?
So they'll build out tonnes of hardware, run out of Helium to pay people with as part of their expansion stage and will need to rely on people actually using the network for a profit to be earned. At that point, earnings will go from absurd amounts per month to 0.00001% a month with no way to get the capital investment back out.
Sounds like UberCrypto - suck in people to invest capital, bring their equipment and they make nothing.
Isn't this exactly what they say is wrong with central banks printing money? What guarantees is there of value?
There's printing money then there's printing money. The RBA hasn't doubled the size of Australian currency in the past year to pay out people sticking wifi devices in their windows. They've printed more money in line with Australia's fiscal policy and while there's more opinions on how that should be done than stars in the universe, the past few decades they've done that well.
The guarantee of value comes from the fact you have to be paid in Australian dollars. Every shop in the country has to accept Australian dollars and the tax man has to accept Australian dollars. Every bank has to take your deposit of Australian dollars and lend to you in Australian dollars. There's no total guarantees in life except death and taxes, and one of those is paid in Australian dollars in this country.
Sounds like UberCrypto - suck in people to invest capital, bring their equipment and they make nothing.
Yup. Despite the creators saying they took zero of the currency themselves, you can bet they were the first to setup devices which automatically meant they were getting huge payouts as early adopters.
Like most crypto, getting in on the ground floor is where the big bucks are made. By the time it's a few years down the line and being talked about by random people on the internet, it's probably all over.
This actually sounds like a ponzi scheme does it not…
It's a ponzi scheme that might work. In theory if millions/billions of devices wind up using "The People's Network" to send data (and it's a good idea, instead of everything needing a sim card, it can just use this network), there'd be a consistent revenue stream for anyone who buys a hotspot. Returns consistently drop for every device sold, consistently rise for the more network traffic until an equilibrium is met. A ponzi scheme will always fail because you're just paying out people's own investments to them.
It's more "build it and they will come", the idea is that once the network is there people will use it, and they're incentivising building the network right now. But once the peak has passed there will be a long period of very small returns on this network while everyone waits to see if it takes off or not.
You've bought ten things and only now are asking what people think?
If it sounds too good to be true then it is.
If they're paying you that much per month, how are they making enough money?
There's an endless pool of suckers to sell "quick money" things to, isn't there.
I never cease to be astonished by what people will buy if you throw the word "crypto" or "mine" into the title
How did you manage to get a miner let alone 10 at that price? I wouldn't mind setting up a miner if the price was right.
People that are interested in passive income can check out how much each miner makes 1D, 7D, and 30D.
https://explorer.helium.com/hotspots
This helium seems like a lot of hot air
I think it sounds like a noble investment
Why don't you tell us? Has it been worth your $5,000 investment? What has your return been?
If it's crypto I'd treat it purely as a speculative gamble and only spend money I don't care about.
Thinking of it as an investment where you're looking for steady or even any returns is dicey.
@freebiemaster1902 How's your HNT mining going?
Have your hotspots arrived yet?
Around April 2021, I had a similar idea and ordered 2 from an overseas retailer but I requested for a refund at the start of this year as their shipping was bloody horrible and so were their updates.
Anyway you can sorta guess what the OPs earnings are by visiting them helium explorer website and I don't think they're great at the moment. The miners may be low power but even if HNT were 40USD right now, the ROI would still be crap and your miner would also be locked to a single blockchain.
You were better off buying HNT and selling during peak period or buying GPUs to mine with. The prime period was mid 2020s to early 2021 to mine HNT with the miners but by that point every the hype already reached peak and everyone was shilling HNT miners on Youtube increasing the amount deployed around the world whilst each time a new miner turned on it simultaneously decreased the profits earned for each miner - as everyone gets a share of the pie depending how you set up your miners, this was mainly based on two things the LoS (line of sight) of you miner and the antenna, the more it could communicate with other miners, the more rewards earned. and those that managed to spoof the location of their miners really raked it in; many of those were located in China or the US. By the time Australia began to get a good influx of miners, the ROI was garbage.
No idea if HNT will take off but no longer a fan of the project.
Yes, I agree. I don't think that HNT will take off. I can see lots of miners getting switched off in the coming months and years. I thought it was very sus since the get go.
The idea of minting heaps on HNT in the first year and then reducing the amount of HNT distributed each year as the number of hotspots increases just doesn't make any sense, other than rewarding early adopters who then spruik the project to others to increase hype. It was in the manufacturers best interest to delay the release of miners to increase demand, which artificially inflated the value of HNT. I wonder how many employees at hotspot manufacturers were obtaining hotspots in the early days and gaming the network by spoofing while the earnings were huge? Spoofing is still a huge problem, and they are earning much more than the average legitimate miners.
Have a look at the cluster around Grafton NSW, Bedourie QLD, Humpty Doo NT, and Southport NT. Previously there were many more clusters in obscure places like Weipa Qld, but they have all moved to other remote towns in Europe and Africa. There's currently hundreds, if not thousands of PantherX miners in Oz that only talk to themselves, and are obviously spoofing. There are a bunch near me in Brisbane that filled in all the empty hex's that only witness the same wallet. I reported hundreds of them more than 3 months ago, but the helium people don't want to know about it.
The helium reddit page is also a joke. When highlighting the spoofing problem here and providing the evidence, everyone said that there is nothing stopping someone buying dozens of miners and providing coverage for their town and that the hotspots were all likely legitimate miners. Also anything you post that questions the future of helium, or is negative towards the project gets deleted.
So many people were saying how great the project was when HNT was worth $50+, it was going to the moon, and how wealthy it's made them. I bet that very few actually converted that HNT into real money, and are now riding it out at < $8, hoping that one day it gets back to $50+. All I can see is the slow decline in the value of HNT until it falls off a cliff and is worthless.
Only 10? Why not a 100 or a thousand?