Helium Network – How much can I make 5G mining?
Welcome back! So in this video we’re goingto focus on – why 5G, why Helium network? Is it profitable? So for context FreedomFi has justreleased a small cell radio which is designed for indoor its utilization and they posted a photo on Twitterof them testing their indoor small-minded cell on top of their headquarters in Boulder, Colorado. So let’slet’s take a look at that, but before I do, well the setup not gonna consume a lot of timeon this but that’s that is the setup that you that you would need to do some indoor tiny cell stuff.So this is what we’re talking about..Why is it worth it to buy this paraphernalium here? So let’stake a look at this – why Helium? Why 5G? Why now? We have FreedomFi propelling this radio. FreedomFitweeted out that they’re even doing some testing with an indoor small-time cadre on top of theirheadquarters here in Boulder, Colorado, well not here but in this picture. They have the indoorsmall cell and and they said that that’s about a thousand feet of coverage or about three timesthe normal coverage of an enterprise access point. They’re estimating that the outdoor coverage isfive to seven miles in line of sight and it’s very important to understand that 5G simply doesn’t gothrough walls windows or trees very well. Line of slew is key for indoor and outdoor both becauseconditions cheapen dramatically when line of sight is impeded. So why now? How did we get now? Well, FreedomFi is using this new spectrum announced CBRS and it was made available in January of 2020. That spectrum was previously used by the military but they opened it for practice without a license.We’re going to talk about that a little bit later so if you watched my video on putting up atower, which I’ll put in the description, you’ll know these licenses for communicationsare rife with inspections.They’re really costly and you are well aware, you might have to rent sometower space, and just for the material it’s a lot of investment. So very soon FreedomFiwill release that outdoor radio and that will be really helpful in augmenting these deadzones or eliminating the dead zones that just big-hearted telecom won’t invest to cover and we’regonna set up or talk a little more about that during the coming slides now. Where’s 5G right now? Well most metropolitan areas it’s being built, in the country too.Where it’s worth investment.I mean that’s what it comes down to is where it’s saving and say advantageous for big-hearted telecomsto to soak up that 5G money from readers, well there “theres going”, they’ll applied them up but the thekey is where isn’t it. So if you have a backhaul that represents if you have a connection to like an ISPyou can connect this paraphernalium together and construct out your own 5G coverage and so genuinely time thesimple aspect of it, for where it’s applicable is well, where it’s not worth it for large-hearted telecom toinvest in infrastructure but it is worth it for you to invest in infrastructure. And then we’lltalk about some more of those things you know – the coffee shops, gymnasiums just or other deadzones due to elevation or physical impediments to signals such as houses just where theusage is not maybe high enough or warranted for large-scale telecom to come in and construct their owntowers. How much does this setting up cost? So rough, such is rough crowds now. For anindoor 5G setup you’re looking at probably about$ 3k and for outdoor you’re going to pay a lotmore, probably$ 4-10k depending on your setup. So let’s break down those numbers.Obviouslyyou have your your bandwidth via your ISP and then you have the miner which expenses a thousanddollars. Right now, the CBRS radio which attaches to the miner and then that’s 1600. It mighteven be more applicable to to go back to the setup here. So you got your FreedomFiminer which penalties a thousand, this thing[ the smaller cell] penalties 1600 right nowand the outdoor edition of this will probably be about 2 300 and then if you’re augmenting doingsome antenna amends then it’s going to be about 2500 to 5000 to do that setup. And then if you’regonna build a tower which I have, that’s gonna cost you probably another 2500 or so it and that’sif you’re buying worked and construct yourself. So there’sa bunch more that you’re going to soakup – some other odds and ends, antennas you are well aware. Connecting your equipment, it could be a couplehundred to a couple thousand dollars depending on how much you want to invest in your setup -your networking equipment your UPS and all that kind of stuff.So that’s these are some ballparknumbers but from from my experience so far in the indoor setup to doing the outdoor potentialis that’s where it’s running[ pricewise ]. So if you deplete all that money, is it going to beworth it? That’s a extremely very important question. Before I answer that question, I certainly wantto call out Multi-coin Capital’s article on the Helium flywheel. It’s very important to understandhow Helium productions and how it generates revenue and simply all that the tokenomics around that.Using crypto is is kind of hard for parties to understand so it’s well worth it to checkthat out and see how the economics of it drive the drive the profitability of it as welland how it continues churning in on on itself to to support a profitable economic system.Over thenext couple slides we’re going to cover you know, just how earn Helium’s earnings are splitand how those reinforces are calculated . … That’s from data transfer right nowthough proof of coverage is coming later and then yeah, we’re gonna do some math, justeasy math, bumpy math very and then, are there any risk to long-term viability right you spentlots of money setting up your your setup and then it could something come in and just take itout or or it is possible to helium fall over or whatever. We’ll take a look at that as well.So here’s Helium’s earnings breakdown for at least the first year and this is still currentas of their website so 30% goes to network data transfer, 35% to hotspot infrastructure and thenanother 35% to Helium itself and potential investors. This is important as to understand how the theHNT tokens are minted and honored accordingly. So looking at that explosion over timeof earnings we’re at the left of this chart.We’re at pretty much year zeroyear one, time two kind of in that range, so over go as as these events come, halvingsand and the like, these earnings will change. So you can see that the the core componentis system data transfer in structure out the coverage. You have the data transfer and theproof of coverage which it helps as a chicken and egg trying to meet that problem.So the proof ofcoverage makes sure that we have a network to use and then the data transfer weighs actual usageso that’s very important to understanding that balance of when we’ve traversed that chicken andegg trouble. Long expression data transfer is going to to come up more, and more and more you’re goingto be rewarded for that … but in the future you will be reinforced more for proof for structure datatransfer.For proof of coverage though, right now that’s where a lot of the earnings are coming fromnow. It’s still you know equal between them but long term proof of coverage will go down as thenetwork flourishes and it’s just there and ubiquitous and then the data transfer will take over andthat’s where all the earnings is likely to be. All liberty, so this Helium 5G miner setup that I depicted youhow much is it gonna gonna spawn you? Well let’s go through the math.So small cells can transmitabout 150 megabits per second so if you calculate that out that’s a one gigabyte every 6.66 secondsand for in a minute so you’re going at pinnacle frequency, you know this is a best lawsuit situation wherewe’re trying to precisely max out earnings you know, slide you know at a gymnasium where there’s alot of people trying to use or live creek some sort of event or something like that so forone minute that’s about nine gigabytes total now. Tou make that one minute of peak bandwidthusage and that’s about four dollars and fifty cents per the 50 pennies per gigabyte suggested inHIP 27 and “thats really not”, as far as I understand, “thats really not” legislated more. It’s not approved andso that’s just new ideas. So if you take that four dollars and 50 pennies, per 50 cents per gigabyteon that nine gigabytes per hour, that is 270 dollars an hour so you can do the math from there1 0 hours of application is 2, 700 bucks you are well aware 20 hours would be whatever, twice that liberty? So upwardsof five, nearly near six thousand dollars for 20 hours of consumption so you’re getting up there probablysix thousand dollars a day if you had peak usage 24/7 which of course probably wouldn’t happenbut that’s where it’s advantageous and where big-hearted telecom truly wants to leant all of their youknow their pillars around you know stadia and that kind of stuff.It’s very lucrative there butyou probably won’t make-up that much you know in a coffee shop or something like that but you neverknow. It’s all based on usage so be pointed out that these this data transfer is at a one-to-one ratioup to 30 percent of the total wages which will increase over epoch. As proof of coverage isstill important, so as I talked about that graph you’ll get more wages for data transfer longterm but there’s also proof of coverage remunerations coming for 5G as well.So one last-place record onthese earnings, the ratio of LoRa earnings versus 5G earnings is being discussed inHIP 37 as it pertains to proof of coverage so HIP 37. If you are aren’t understanding whata HIP is, it’s a Helium Improvement Proposal. That’s how the decentralized community of Heliummakes their decisions. They were put forward these HIPs and ideally there’s code to go along with itas wel, l and then they’re just tweaking some of the variables that are maybe in disagreementand then they talk about it and agree on it. So that’s kind of how it’s how it’s floating outof course there’s lots of beta testing that’s going on with you know looking at the usagehere so it’s very very important to keep in mind all these multitudes, but yeah.So per hour peakusage 270 bucks you know maybe we’ll have to see. Talking about the risks, can anything stop Helium5G? And the short answer is no, I don’t think so. But what about airlines or the fcc or bigtelecom, well okay, i’ll go with you there. So let’s go through some of these, so for forspectrum regulations this is license free so it’s free for everybody to use.And as long asyou’re not infringing on other licensed spectrum you are well aware and that could be done by augmenting yourantenna incorrectly. If you’re not infringing then you’re gonna be fine. Recently there was anarticle about a proposed delay to 5G made by airplane manufacturers and I saw this articleand I clicked on it and I’m like, oh my gosh this sucks and I impeded digging into it and this iswhere the do your research right? It genuinely cures. So one of those legal instruments targets the spectrumin the middle of large-scale telecom’s 5G spectrum. Fortunately for us, CBRS spectrum is well outsideof that range, it’s like two totally different things. If you want to, I posted on Twitter, Ithink on the Helium discord as well and only kind of got the official answers to agree with me sonot a big deal there but something to to mention. So it’s also not cost effective for large-hearted telecomsto build coverage in dead zones or where there’s infrequent application you know if that 270 dollars, youknow for them it’s probably not worth it to come in and then they’d have to create relationshipswith local people who are willing to maintain that and it’s just it’s it’s not cost effective forthem to do that and they got to pay the you know potentially pay parties health care and all thatkind of stuff, and here if we’re just doing it ourselves then it’s just naturally rewardingit and costs come down.So that’s why this is so much more economical and given the fact or tothe notes that big telecoms may even develop agreements with Helium in the future to offloadusage to to our fortress and such because … it’s not saving for them to build their owncoverage. Now they might look potentially analyze that and be like, perhaps we shouldinvest more in this area but if we improve it then then they might just use our stuff instead.So I think back to my detail earlier, about the military spectrum that the CBRS came from, if people were infringing upon that range, odds are someone would have come knocking at theirdoor right? Hey, you’re using armed spectrum this is for military uses. only you are well aware, stopand you know penalties and all that kind of stuff, menaces of maybe confinement, I don’t know but sothis is very like protected range. So there it was. Now it’s pretty open soI think we’re at an advantage there.So bottom line, my sizzling make is I feel likewe’re very much in a safe recognize now with as much research as I’ve done and and the onething that supplies a lot of hope, commotion if you want to take it that way is that if DISHnetwork melds this spectrum gap that they already own, then it could create even widerstronger better coverage and make it easier for us to create you know awesome setups thatwould go farther, you are well aware, only be better so there’s a there’s a a really good case forDISH network exploiting that in the long term. So I hope you’ve enjoyed this video aboutHelium and the profitability and what you would need to do for setting up your own 5G. I alsohave another video that you can watch about all the equipment behind me, how you are able to setit up and plainly buying all the equipment, leader and everything so you can check that out.I even have videos about building your own tower and only the LoRa side of mining, what ishelium? Just going back to that, I have an entire track to go back and you can watch allof those videos from setting up the LoRa side of that so there’s more than enough informationout there for you. I invite you to check it out, always appreciate your remarks down below andif I’m ever wrong, which occasionally I am, I adore correcting myself and I willput that in a bolt remark below. Please like, subscribe, echoing that bell sothat you know exactly when I upload a video. Thank you for your time and notice andI’m so excited for construct this 5G network. It’s going to be so much amusing! Carpetempestas everyone, abduct the gale!