Ungrounded:
Voltage Divider: In most cases, the potentiometer is used as a voltage divider. Terminal B doesn’t have to be grounded because the wiper provides a variable voltage between V+ (at terminal A) and whatever voltage is at terminal B. If terminal B is unconnected or connected to a fixed voltage (not ground), the wiper’s output will still vary between these two points.
Resistive Element: The potentiometer’s resistive element provides a variable resistance as the wiper moves, regardless of whether terminal B is grounded. The purpose of the potentiometer is to tap into the voltage potential across the resistive element, which doesn’t necessarily require grounding.
Grounded:
Rheostat Configuration: If the potentiometer is being used as a variable resistor (rheostat) rather than a voltage divider, it is common to ground terminal B. In this setup, only one side of the resistive element (the wiper) is used in conjunction with terminal A, and terminal B is grounded to complete the circuit. A common example of a rheostat might be a dimmer switch in a home circuit.
Ground Reference for the Output: If the circuit needs the potentiometer’s output to have a ground reference (such as in audio volume control), terminal B might be grounded to ensure the output is referenced to 0V when the wiper is at one end of its range.
By turning the knob, the wiper moves between the first and third legs, changing the resistance between the wiper (middle leg) and each end. This is how the potentiometer adjusts voltage or resistance in a circuit.