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

The majority of lightning node runners will have much less then 1 BTC. So it is more like "support the network". There need to be many nodes to avoid centralization. Setup and running a secure node is difficult enought and stops zhe majority of bitcoiners to have an own node. Let alone all the lightning managing stuff.

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On the contrary, I think it makes sense for everyone to run their own small node to pay vendors for goods and services via Bitcoin Lightning through their own node, and also, if needed, to receive payments from others. The benefits are that a person controls their own funds, maintains privacy, and incidentally supports the Bitcoin Lightning network if it's a public node.

Or, for businesses to run their own node to receive payments.

These two scenarios seem most optimal for people who want to work with the Bitcoin Lightning Network.

But running nodes solely to earn commissions from routing, I think probably makes no sense.

Maybe a third option is to become an LSP provider and sell channels automatically, if such support is added to major wallets like Breez SDK, or Zeus, Wallet. Here you can earn from selling channels, and this will likely be more profitable than earning from monetization.

Ok, so we understand it the same way. However, running an own lightning node is way to complicated for even avg. IT person. I hope this will increase.

Have a own node with maybe 5 channels requires already 6M sats to be save. This is only enought for small payments in US and EU standards. Smaller channels could be risky if fees grows massive in future. Beeing to high to have small channels running.