Post
Topic
Board Bitcoin Discussion
Bitcoin lightning nodes, 240% per year? What am I missing
by
Crypto Capital
on 01/07/2018, 23:56:39 UTC
I recently came across this article regarding setting up a bitcoin lightning network node which was highly up voted on Reddit by this guy presumably from lightning labs which you can see here. What struck me is the following claims;

1.
Quote
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?

2.
Quote
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?

3.
Quote
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?



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?