1.
Where are these theoretical models? Surely the low barrier of entry to creating a node would prevent running one from being so profitable?
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There are theoretical models out there that predict a return of 60-80% returns for well connected nodes.
Where are these theoretical models? Surely the low barrier of entry to creating a node would prevent running one from being so profitable?
No idea about theoretical models, but surely that means you could have more income by charge fees when people route transaction through your channel/nodes
2.
What is the barrier to becoming the 1st most connected node if the cost is only $2,000? Is it extremely time intensive to set up channels? Marketing?
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You can become the 6th most connected node with an investment on only $2,000
What is the barrier to becoming the 1st most connected node if the cost is only $2,000? Is it extremely time intensive to set up channels? Marketing?
If you have more Bitcoin on your LN channel/nodes, that means you can route transaction with big value and you even can even charge small fees.
The fastest way to become most connected nodes is by becoming merchants or services, that way customer would connect to your channel/nodes if they couldn't find any route to your channel/nodes
3.
Why isn't everyone doing this and driving the returns down at rates like that?
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This persons real life returns are at a rate of approximately 20% per month.
Why isn't everyone doing this and driving the returns down at rates like that?
Because LN isn't ready for mainstream users and even LN developer don't encourage user to use LN on mainnet.
I know that genuine gold rush opportunities exist as I have had the opportunity to exploit a couple in the past and risk is not always proportional to return but I feel like this guy would not be posting this article if the opportunity was really as good as he makes it sounds. Thoughts?
My thought is you shouldn't use run LN channel/nodes solely for profit by charge fees when people route transaction through your channel/nodes since LN supposed to have low/zero fees and i doubt it's worth your time unless lots of people connect to your channel/nodes.
