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Author Topic: Economy of running an ETH node  (Read 116 times)
AppliedOptimal (OP)
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November 07, 2019, 06:35:01 AM
 #1

According to this article, max annual return rate (for validators) ranges from 1.56% to 18.10%. The costs will be around $120/year for a beacon node and $60/year per validator client.
So, you spend about 180 USD for running one validator and stake your 32 ETH, which is 6K USD at the moment.
If you get 1.56% per year, you will get 93.6 USD per year for your 32 ETH, which is about 0.5 ETH. With this rate, you are basically losing money, 180 USD versus 93.6 USD, considering ETH price is the same.
If you get the maximum rate because there are not many nodes, you will get 5.79 ETH per year, and you have to be running your computer 24/7.

Not sure if this is worth it if you run one node only. Ideas?

tinyteapot
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November 07, 2019, 08:45:41 AM
 #2

No one will be interested in running an eth node when taking your analysis into considerations but if we look at it the other way round we could conclude this way:

32 eth @ $190 = $6k, profit for the year 0.5 eth = $90.
The price of eth is predicted to hit $1000 by next year ending.
32 eth @ $1000 = $32,000, profit for the year 0.5 eth = $500

The choice is yours/ours.
Javi_Anibarro
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November 07, 2019, 09:07:04 AM
 #3

This is definitely not worth it if we are only running a single beacon node and a single validator client. But it is totally different if we are running a large scale validator, a single beacon node with multiple validator clients. The article only reveals part of it, there is more to come.
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November 07, 2019, 09:11:01 AM
 #4

No one will be interested in running an eth node when taking your analysis into considerations but if we look at it the other way round we could conclude this way:

32 eth @ $190 = $6k, profit for the year 0.5 eth = $90.
The price of eth is predicted to hit $1000 by next year ending.
32 eth @ $1000 = $32,000, profit for the year 0.5 eth = $500

The choice is yours/ours.

Yes this could happen.
There could be more who will doing the staking taking the demand higher.

Also, an example would be sharing for the stakes. Let us say I will buy the 16 ETH while my partner will take the other half.
There are a lot of possibilities for profit.
But as tinyteapot says it, it is your own choice. If that is how you calculate everything then do not go further.
But again, the possibility of ETH going back to its ATH is also possible which makes the profit higher.
mindrust
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November 07, 2019, 09:14:13 AM
 #5

PoS is never going to win against PoW. PoW has its weaknesses but compared to PoS it is still superior. I don't understand how Eth people fall for that scam it is not even something new it has been around since what? since the beginning already. There are thousands of similar PoS coins and none of them really "survived"

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cudora
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November 07, 2019, 03:11:01 PM
 #6

I believe buying a BTC, ZEC or BCH miner would bring much more money per year, as for staking ETH. If you buy a new Bitmain Miner, you will earn 15 dollars per day, by investing 1/3 of what is required for ETH staking.

Ridwan Fauzi
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November 07, 2019, 03:23:58 PM
 #7

Maybe it will be promising for those who had a lot of ETH on their wallet. Moreover, if they choose long term investment and this way can be taken as side income.

But, for me it is large amount of money I can't buy 32 ETH or arround $6000. Maybe I'll pick another altcoin such as Innova or etc who need a little money but I'll get passive income to join with it masternode.

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November 07, 2019, 03:31:19 PM
 #8

No one will be interested in running an eth node when taking your analysis into considerations but if we look at it the other way round we could conclude this way:

32 eth @ $190 = $6k, profit for the year 0.5 eth = $90.
The price of eth is predicted to hit $1000 by next year ending.
32 eth @ $1000 = $32,000, profit for the year 0.5 eth = $500

The choice is yours/ours.

This is correct. The shift to Ethereum 2 would boost the price of Ethereum in long run. Unlike bitcoin, it would have a good supply to make it a useable utility coin and price high enough for current investors to make a profit of. Still an interest rate of over 4% would be beneficial than bank accounts if you are not using some high priced rented servers.

AppliedOptimal (OP)
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November 07, 2019, 06:54:01 PM
 #9

Well, I would not mind staking some ETH but then I would have to run a node and leave my pc on 24 hours a day, which ages the components. Aaaaaand you get punished if you go offline at night or something. That would be bad for your investment.
I guess we will see when it goes online and when things are ironed out.
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