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Author Topic: Is setting up a bitcoin lighting node profitable  (Read 187 times)
Charles-Tim (OP)
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December 18, 2020, 08:58:46 AM
 #1

According to what I read on coindesk, I found it easy that to set up a lightning node will not be difficult. According to the write up, these are what needed:
 
The equipments
RaspiBlitz is specialized software that will automate many of the steps that go into creating our node, helping users to build their own. Once the node is all set up, the RaspiBlitz software will pull up a graphical interface for using the node – for making payments with it, for instance. Finally, RaspiBlitz also offers a set of detailed instructions, which we’re going to follow in this article to get our Bitcoin and Lighting nodes up and running.

The first step in building any Bitcoin node is to buy the equipment. Fulmo offers a package of this equipment for 269 euros (worth about $322 at time of writing). However, users can opt to buy their own pieces instead. The RaspiBlitz instructions suggest that users purchase the following:

A Raspberry Pi ($66 for version 4): This is a pocket-sized computer that powers the Lightning node. (Computers have certainly evolved since the ENIAC, which weighed 50 tons, about 10 times as much as an elephant.)

Power supply: USB-C, 5V, >=3A ($10)

Storage: A MicroSD card (~$10) for holding the RaspiBlitz software and a 1 terabyte SSD hard drive (~$100) for storing all the Bitcoin data. (Spoiler alert: There's a lot of data. And it'll grow if a node is up and running for long.)
Protective gear: A case ($10) for the SSD will keep the data safe from bumps. A heatsink case ($15) for the Raspberry Pi will keep it from overheating.

An LCD screen 3.5" RPi Display, GPIO connection, XPT2046 Touch Controller ($25): Once it's set up, this screen will show a little bit about the node, including the address it uses to connect to other nodes. This is a key piece that sets RaspiBlitz apart from other Lightning nodes.

https://www.coindesk.com/becoming-self-sovereign-how-to-set-up-a-bitcoin-node-lightning

               

My questions
The question is that biitcoin lightning node setup is not hard but is it profitable?
In this kind of setup, to be specific, what can be the profit of someone that setup the node?




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ranochigo
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December 18, 2020, 09:07:22 AM
 #2

Not profitable. IIRC, I read somewhere that one of the lightning node has a huge capacity (think 10s of Bitcoins) but merely earned cents or a few thousand satoshis only.

Lightning nodes are not profitable but I regard the expenses of setting one up as negligible and I would gain more insight into lightning network as a result. I'm setting one up alongside my primary RPi BTC node, when I get my RPi4 next week.

An alternative is RaspiBolt.

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December 18, 2020, 09:52:06 AM
 #3

With the cost of the equipment you are buying, you're definitely going to be at a net loss. Not to mention this setup doesn't cover the cost of network equipment, and data plans that bill monthly. Why not just rent a cheap Linux server on bitnodes and set up LN on that? It only costs a few bucks per month.

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ranochigo
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December 18, 2020, 10:15:03 AM
 #4

With the cost of the equipment you are buying, you're definitely going to be at a net loss. Not to mention this setup doesn't cover the cost of network equipment, and data plans that bill monthly. Why not just rent a cheap Linux server on bitnodes and set up LN on that? It only costs a few bucks per month.
To be fair, a Raspberry Pi isn't particularly expensive considering it's sufficient computing power as compared to most VPSes. You can probably sell the RPi off for a decent amount if the $35/$45 really matters to you. Renting a cheap server just to run LN or a node is definitely a net loss and after awhile, the cost of it would definitely surpass RPi.

I don't think network/data is that big of an issue? You can easily limit it and I don't think it would consume that much bandwidth either.

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December 18, 2020, 11:12:15 AM
 #5

With the cost of the equipment you are buying, you're definitely going to be at a net loss. Not to mention this setup doesn't cover the cost of network equipment, and data plans that bill monthly. Why not just rent a cheap Linux server on bitnodes and set up LN on that? It only costs a few bucks per month.
To be fair, a Raspberry Pi isn't particularly expensive considering it's sufficient computing power as compared to most VPSes. You can probably sell the RPi off for a decent amount if the $35/$45 really matters to you. Renting a cheap server just to run LN or a node is definitely a net loss and after awhile, the cost of it would definitely surpass RPi.

I don't think network/data is that big of an issue? You can easily limit it and I don't think it would consume that much bandwidth either.

I was thinking about net loss in terms of Fulmo's package, but now I see also the setup that OP is suggesting isn't much better pricewise. All the parts in OP total $215, ignoring networking costs, if you don't buy the LCD screen as it's unnecessary, compared to Fulmo's $322.

I actually meant to write bitlaunch.io, in place of bitnodes. Must have slipped through my head. But that provider turns out to be a bad idea since only SSDs are offered and so for 1TB you pay much more per month than $322.

I'm really wondering if an under $100 LN node is doable. Maybe by using second-hand Pis and a 500GB HDD?

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ranochigo
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December 18, 2020, 11:39:52 AM
 #6

I actually meant to write bitlaunch.io, in place of bitnodes. Must have slipped through my head. But that provider turns out to be a bad idea since only SSDs are offered and so for 1TB you pay much more per month than $322.

I'm really wondering if an under $100 LN node is doable. Maybe by using second-hand Pis and a 500GB HDD?

I never thought of hosted servers as a worthwhile investment, their price to performance ratio is much more skewed than RPis and related equipment.

I think we have to break it down in terms of the cost of individual components:
RPi 4, 4GB - 57.99
Power supply - It's a bit iffy, I'll just grab my spare phone charger but for the sake of comparison, $10
SD card - $10, if you don't have one lying around
1TB WD Blue HDD - $39.99

I consider that the bare minimum needed for any LN nodes, considering that it actually doesn't output much heat and heat sinks are $5, max where I'm from. I think the price that OP listed can be slightly conservative and if you don't need so many features, it's possible to build one for relatively cheap. I salvaged loads of mine from old parts/laptops that I'm no longer using.

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