Replying to Avatar LNBϟG

Hello everyone! I want to share my opinion on how much a node or multiple nodes in the #Bitcoin #LightningNetwork can earn for their owners, using the example of my own nodes. I will provide the figures as an annual percentage.

Currently, over approximately five days, the entire network of my nodes earns about 500,000 satoshis per day on average. This is an average parameter. 500,000 satoshis is 0.005 bitcoins.

The liquidity on my side across all nodes is roughly around 300 bitcoins. So, let's simply calculate the annual percentage. You can roughly calculate it like this: 0.005 bitcoin multiplied by 365 days divided by 300 bitcoins. Multiply by 100%, and it comes out to about 0.6% profit from fees, which are currently at 700 ppm + 1 sat base fee.

This formula does not take into account the costs for opening channels, which include on-chain fees for Bitcoin channel opening transactions, nor does it include various expenses related to channel closures, whether automatic or forced, cooperative or forced. We are just taking the net figure as if the same channels were open all year without any expenses. You should also consider the risks associated with annual node maintenance. These include hosting costs, creating backups, labor efforts, and the risks of node hacking, which could theoretically be hacked and have all funds stolen.

Is this a profitable venture? You decide for yourselves. I just wanted to share some useful information with you.

Goodbye!

#Stats #LNBiG #profit #fees

Also small node operators have little chance of having incoming channels openened to them and must balance their outgoing channels by looping out sats which is not cheap either.

Even if my node isn't profitable, when coupled with Lnbits, if offers great LN experience (via Zeus) to friends and family🐸

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Discussion

This!.

For small node operators, there's very little chance of getting an incoming channel, but it might not even be necessary. If you're running your small node to use as a family server for payments, your outgoing channels will quickly be partially emptied by sent payments, allowing you to receive incoming payments. You don't need to get incoming channels from anywhere for that. It's enough to just use the Bitcoin Lightning Network and pay for goods and services. In the end, even if you don't want to pay for any goods and services, you can just transfer some satoshis to a custodial wallet to have a backup option to pay if something happens to your node's internet channel.

In fact, in the second paragraph, you indicate that you use it as a family node. Initially, when such a server is launched, if there are no incoming channels, payments won't go through. But by putting your bitcoins there, you can allow your family and yourself to make payments through the Lightning Network. And right after the first payments, you'll have incoming liquidity.