Q: Can someone please provide an example of how the Helium network is being used?
Q: How does Amazon Sidewalk stack up to Helium?
A: https://twitter.com/amirhaleem/status/1391440448107913216 (straight from Helium's CEO)
Q: What dictates the challenge process?/What determines the number of challenges?
A: https://docs.helium.com/blockchain/proof-of-coverage/. Note: the PoC challenge interval can change. Per the discord announcement on 6/3/2021, "Last week we reduced the PoC challenge interval to 480 blocks from 240 blocks. At the target block time of 60s, this should mean that a Hotspot will be targeted every 8 hours (on average). However, due to slow block times, this interval could be as much as 12 hours or more. It won't be uncommon to go a day or more without a single beacon, as PoC challenges can fail for a number of reasons. The rewards should be the same per beacon, but could take much longer to arrive. This will also mean you witness less often, as the Hotspots around you are also beaconing less frequently."
Q: What is the consensus group?
A: https://docs.helium.com/blockchain/consensus-protocol/. Note: With the approval and pending implementation of HIP25, the current consensus protocol will be changing.
Q: How can I tell if I am in the consensus group?
A: In your activity feed, you will see a red box labelled "Consensus Election". Additionally, you can view the current consensus group members here. To reiterate, please note that the consensus protocol is changing, as mentioned above.
Q: Which miner is the best?/Which miner should I buy?/Which manufacturer should I buy my miner from?
A: It really does not matter which manufacturer you purchase your miner from, as they all provide the same functionality. At this point, the only variability among manufacturers is shipping times and customer service levels. One caveat to note: Kerlink miners cannot perform consensus functions. Thus, if you purchase a miner from Kerlink, your miner will not be eligible to participate in the current consensus protocol. However, given that the odds of being selected to the consensus protocol are quite low and the fact that the consensus protocol will be changing (see above), I would not place too much weight on this in the decision-making process.
Q: How can I optimize my setup?
A: https://kyk13.com/a-rough-guide-to-helium-hotspot-placement/
Q: Where can I buy the hardware needed (antenna, outdoor enclosure, etc.) to optimize my setup?
A: RAKWireless and ParleyLabs have great Helium-specific storefronts. The ancillary equipment needed will likely include a coax cable to connect the antenna and the outdoor enclosure (length and connectors are not one-size-fits-all, so you will need to check the documentation of your antenna and your enclosure to determine the proper cable to order), a mast for the antenna, mounting equipment, and grounding equipment. My hotspot is mounted to my chimney and I used this equipment as part of my setup.
Q: My hotspot is relayed. What does this mean?/How can I fix this?
A: https://www.youtube.com/watch?v=X5_0Ln8zo0s
Q: How much will I earn?
A: This is far too broad of a question. To simplify things, a hotspot's earnings can be thought of as a function of how many other hotspots can witness your hotspot and how many other hotspots that your hotspot can witness. A hotspot's elevation (be it natural elevation or manufactured elevation via a mast or mount), line of sight to other hotspots, and proximity to other hotspots are the primary variables that will drive witness activity. Additionally, your hotspot's "reward scaling" (detailed in the PoC docs) will impact earnings stemming from your hotspot's beacons. I'd recommend using the coverage map to scope out your area and a tool like hotspotrf to get an estimate of what your coverage range may be (emphasis on the word estimate)
Q: What will the earnings be like in the future?
A: At the macro level, earnings will be down across the board, as a result of both network growth and the biennial rewards halving (see HIP20).
Q: Am I too late?
A: This is far too broad of a question. Are you too late to become a millionaire in a short year's time? Probably, unless you plan on deploying hundreds of hotspots with optimal setups. Are you too late to earn passive income while helping build decentralized networks? No, you are absolutely not too late.
Q: What to do if my neighbor sets up a hotspot in my hexagon?
A: This one always gives me a bit of a chuckle. It's not your hexagon. You don't have eminent domain over it. Your neighbor shares the same right to deploy a hotspot as you do.
Q: How did you hear about Helium?/How did you find out about Helium?
A: Obviously, this answer is going to vary by person. However, I like to plug Fred Wilson any chance I can get. Fred is the co-founder of the VC firm Union Square Ventures. Some of the firm's biggest hits include Twitter, Etsy, Coinbase, and MongoDB. I started reading his blog in 2015 but I certainly wish I had been a reader in 2011 (the first time he blogged about Bitcoin). I made it a point to read his blog daily, to give myself a shot at the "next big thing." When I read his blog post about Helium in November of 2019, Helium was a no-brainer investment for me. Quite simply, Fred is the GOAT.
Q: Where can I buy or sell HNT?
A: CoinMarketCap has a list of centralized HNT markets, although it may not be exhaustive.
Q: How can I convert my HNT to USD?
A: First, you'll have to transfer your HNT from your wallet to an exchange that lists HNT (see above). Next, I'd recommend exchanging HNT for USD directly if possible to minimize transaction costs and the number of taxable events created. If a direct exchange for USD is not possible, your best bet would be to exchange HNT for ETH, transfer said ETH to Coinbase, and exchange said ETH for USD. This would likely result in higher transaction costs and two taxable events (HNT --> ETH and ETH --> USD).
Q: What are the tax implications of mining HNT?
A: This is far too broad of a question, as tax laws differ based on your jurisdiction. In the United States, cryptocurrency earned from mining is treated as ordinary income. In terms of reporting, the taxpayer must decide whether to report mining income as hobby income or self-employment income (see IRS guidelines). Self-employment income is reported on Schedule C of Form 1040. The main benefit of reporting as self-employment income (as opposed to hobby income) is that you can directly offset mining income with mining expenses. This may include the cost of the hotspot, the cost of other hardware used as part of your setup (antenna, mast, mounting equipment, grounding equipment, installation costs, etc.), the cost of the Internet that the hotspot is connected to, and the cost of custody. When I say custody, I am referring to how you "store" your HNT. If you custody your HNT on the Helium mobile app, you can deduct a portion of your mobile phone cost. If you custody your HNT on a hardware wallet like a Ledger, you could deduct the cost of the Ledger. (obligatory disclaimer: not tax advice, consult a tax professional)
Q: What are the tax implications of selling HNT or converting HNT to another cryptocurrency?
A: Again, this is far too broad of a question, as tax laws differ based on your jurisdiction. In the United States, cryptocurrency is treated as property and any taxable events incurred by exchanging cryptocurrency are subject to capital gains tax rules (obligatory disclaimer again: not tax advice, consult a tax professional)
A few other thoughts:
- Some of the comments regarding the hotspot hosting companies like Emrit, Hostify, etc. have gotten a bit out of line. Emrit has been purchasing and deploying hotspots since August of 2019, well before the HNT token even had a USD price attached to it and well before mining HNT was even remotely popular. They took on a tremendous amount of risk during the primitive stages of this project. The network would not be what it is today without them. Is there a valid concern about centralization? Yes, this likely warrants some civil discourse. However, simply bashing Emrit because you've deemed their earnings sharing agreements unfavorable is completely uncalled for. Emrit isn't showing up to its hosts' doorsteps demanding that they put a hotspot on their property. These hosts are acting on their own volition.
- There's a ton of great information on Reddit, Discord, Twitter, and Helium's own website, as evidenced by many of the links included here. Don't be afraid to ask a question, but people are more willing to help if you can demonstrate that you've at least rolled your sleeves up and started digging.
- One other point on taxes. My day job is in accounting and I am in the process of launching a tax firm specializing in cryptocurrency. Feel free to DM me with tax questions.
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