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You are locking the bitcoin in a sense that if you deploy it (use it to buy something else), your node won't have any money to route anything. That's what I ment. Like... I don't know... Opportunity cost (and the fact that funds would be safer in non-hot wallet).

I'm just saying that your node's capacity can be multiples of your own capital, so your yield isn't really correlated to how much you keep hot... but how much peering you attract for other reasons (CashApp example)

funds would be safer in non-hot wallet

This is also a good point as to why chasing yield is dumb

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I don't really care about yield itself. I more about care whether there is a possibility with time the routing nodes to become less in number.

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There's no such thing as a routing node, just nodes, some just route better than others.

The network is still small, so overall I expect they'll increase, but not relative to overall growth.

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LOL. There certainly are non-routing nodes. I have one running on my phone.

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That doesn't make one not on your phone a routing node, a node is a node, they are not distinct functions.

Yours is an edge node.

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Am I using a wrong word here? What is the correct term for a non-edge node that routes payments through it?

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"Routing node" implies routing as a role, they're just... nodes.

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What is the correct term to differentiate nodes that have payments that don't originate or terminate on them, but are passed through them from nodes that don't have such payments?