Nostr Web Client

In good conscience I have to chime in on this post. It's awesome the revenue that Derek is making, but for anyone thinking about standing up a routing node, the majority of nodes won't be profitable. There are cost associated to open channels, rebalancing, and most of all, force closes.

Here are my routing stats for approximately 5 months. What it doesn't show is that I'm around 150,000 sats in the red. Running a lightning node, in my opinion, is a great education in Bitcoin and contribution to the resiliency of the Lightning network. But save for the really large nodes, many won't be profitable.

Take that for what it's worth. I'm my mind the sats that I've "lost" aren't a loss at all but the best education/experience I've had in the space.

nostr:nevent1qqsgd0mty3cyt8mqauwqvzq2tfdt7kaw6akqg07queqft58uzap7npgpz9mhxue69uhkummnw3ezuamfdejj7q3q8ams6ewn5aj2n3wt2qawzglx9mr4nzksxhvrdc4gzrecw7n5tvjqxpqqqqqqzctgdjx

JackTheMimic 1y ago

It's about creating your own networks. Think banking networks. Their ATMs interoperate, why is that? Because they take a cut. For a "profitable" routing node it's about business relationships not hoping your node is well connected. Create (usually the only) pathways to buy things for your local stores in BTC.

Take the day, talk to all local stores who will listen that you can provide essentially an under the table way to have direct customer relations. Open your node to them and have them put up a QR placard in their business to use your routing node to buy items there with Lightning.

Derek has connections, if very plugged into his community and is probably why he is promoting his node.

Just some food for thought. No one is saying put on a parachute and figure it out on the way down.

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Discussion

djmeistro✝️ 🍊💊⚡️ 1y ago

Here's the thing Jack, the whole reason why I quoted Derek's post is because I think the picture tells only half truths. I could be wrong. nostr:nprofile1qqsr7acdvhf6we9fch94qwhpy0nza36e3tgrtkpku25ppuu80f69kfqpr9mhxue69uhhyetvv9ujumt0d4hhxarj9ecxjmnt9uq3wamnwvaz7tmjv4kxz7fwdehhxarj9e3xzmny9uq3zamnwvaz7tmwdaehgu3wwa5kuef03vj0dj is your node profitable?

Derek Ross 1y ago

I dunno? I rarely open new channels. I rarely have any force closures. I don't rebalance. I hope it breaks even or close to it. I don't run a node to be profitable. I run a node to help the network and to be self sovereign with my lightning transactions.

Year one was manually rebalancing. I lost money then for sure. Year two I ran auto-rebalancing via LNDg. The past two years I haven't been rebalancing to save funds.

djmeistro✝️ 🍊💊⚡️ 1y ago

Gotcha...when I read "earns generational wealth" to me that implies you're making more than your cost. There's a big difference between revenue and profit.

I think it's important to level set for noobs thinking about setting up a Lightning node with the sole intent of being profitable

Derek Ross 1y ago

"Generational wealth" is kind of a meme. I was shitposting.

djmeistro✝️ 🍊💊⚡️ 1y ago