As inflation rates soar and the U.S. banking crisis worsens, many Americans turn to cryptocurrency mining to earn a living. $HNT miners purchase the Bobcat Helium Miner to scale up their operations and increase their cryptocurrency earnings.
This article explores the different factors that affect Bobcat Miner profitability and how you could calculate your potential earnings from Helium mining. Read on to learn more.
Why Consider Bobcat Mining Profitability
The Helium Network uses the LoRaWAN protocol for its decentralized Internet of Things (IoT) platform that builds high-speed and reliable wireless networks. Operators of Helium hotspots, such as the Bobcat Helium Miner, are known as miners (nodes) on the network. In exchange for offering hotspots to extend the network’s coverage, miners receive the $HNT token, which they can sell for cash.
Even though Bobcat Mining may seem simple, it takes more than mining and selling $HNT tokens to be profitable. So before you purchase expensive mining equipment, make sure to consider Bobcat Mining profitability first.
Factors Affecting Bobcat Mining Profitability
Earning HNT tokens can be done in two simple ways. Bobcat miners can either transfer data to other miners or participate in Proof of Coverage (PoC) work. Both tasks, however, involve certain costs due to the processes involved.
The following are some costs associated with Bobcat Mining that can affect its profitability:
Current Price Of Helium Tokens
There are several cryptocurrency exchanges that handle the buying and selling of $HNT tokens, the native crypto coin of The People’s Network. The amount of revenue Bobcat Mining can generate is largely dependent on the current market price of Helium tokens. At the time of this writing, the current price of $HNT coins is $2.3.
Antenna Gain And Hotspot Coverage
A strong and reliable connection signal is necessary when mining Helium tokens. A significant factor in determining a hotspot’s signal is its antenna. An antenna’s gain is expressed in dBi. Higher dBi indicates a weaker signal strength but with an extensive range, while lower dBi indicates a stronger signal with a smaller reach.
In addition, the number of devices connected to your hotspot also affects the amount of HNT tokens you can mine since the Helium Network operates on PoC.
Rewards For Mining With Helium
The Helium blockchain compensates miners (hotspot providers) for validating the Helium Network and extending its wireless network coverage. Compensation is provided in the form of $HNT tokens, the native crypto coin of the Helium Network. On average, a Bobcat Miner can earn a maximum of 0.11 HNT daily.
Low-Cost Internet Connections
A high-speed internet connection is crucial for miners since the Bobcat Helium Miner serves as a hotspot in the Helium Network’s Proof of Coverage (PoC) work algorithm. Currently, the average internet bill in most U.S. cities is $64 per month. In some areas, internet providers can charge up to $100 per month. Therefore, low-cost internet connections are necessary to reduce the costs of Helium mining.
Wi-Fi Network Accessibility
Proof of Coverage (PoC) allows other users to verify your Bobcat Miner rig’s credibility, configuration, coverage, and location. In addition, hotspots with optimal network accessibility enable other users to easily validate your device, allowing you to earn more $HNT tokens.
Cost Of The Miner And Setup Fees
There are two prominent Bobcat Helium Miners available on the market today, the 300 series and the 500 series. The 300 series may cost up to $200, while the more advanced 500 series can cost anywhere between $500 to $1,000.
Maintenance Costs And Upgrades
There are times when Bobcat Helium Miners can run into relay errors if there is weak signal reception and internet connection in your area. To deal with such issues, you may choose to upgrade your set-up or perform routine maintenance on your wireless connections. This may cost anywhere between $30 to $150.
Hash Rate Of The Network
“Hashrate” is a measure of how much computational power is needed to mine and process transactions on a blockchain, such as Helium’s PoC blockchain. The more hash rate a token has, the more computing power and energy it will require to mine it.
Difficulty Levels Of The Blockchain
Blockchain mining difficulty on the Helium Network is designed to keep the network secure while preventing the surplus of HNT coins, reducing its market value. Although, as the difficulty level of the Helium blockchain increases, the difficulty level of mining also increases.
Calculating Profitability With A Bobcat Miner
If you are interested in starting your Helium mining journey with a Bobcat Miner, you should conduct extensive research on its profitability before buying.
Calculating Potential Earnings With A Bobcat Miner
With the current market price of $HNT tokens at $2.35 and an average of 0.11 HNT tokens mined per day, you can earn 0.2585 cents a day with a Bobcat Miner.
An online Helium mining profit calculator can also be used to calculate your potential earnings.
Conclusion: Bobcat Miner Profitability
Bobcat Helium Miner rates may vary depending on your location, internet provider, and several other factors. Nevertheless, the majority of Bobcat miners are priced between $200 and $1,000.
An individual consumer may have to invest significant money to mine 0.11 HNT tokens daily. Hence, Bobcat Miner profitability only becomes apparent over time due to the high costs of operating one.
To learn more about how a blockchain works, read this article from Trustable Tech on what is blockchain technology.
