321 sats \ 5 replies \ @TonyGiorgio 19 Oct 2023 \ on: Will Large Miners Operate Lightning Routing Nodes? bitcoin
With what money? Customer funds? How is it audited? How is it secured? What individual is going to manage it?
Miners do one thing well and they centralize the coordination of it. They aren't whales looking to gamble all of their hard work trying to be a profitable miner by throwing away money at a poor chance for more. Most of it either goes back to individual miners, electricity bills, or expansion of their successful business if they are doing decent.
Agreed with @petertodd - there's nothing special about being a miner, and being a non lightning product trying to "get yeild" is a pipedream. Especially given how calculated and conservative mining typically is.
Also it's a security concern for LN.
I've often thought that entities with a lot of capex invested in btc would do well to pursue some higher-order strategies. In other words, if your entire existence depends on btc being worth something -- and in particular, if it depends on it being worth more than it is now, to deal with things like halvings, etc. -- then it would behoove you to try to grow the pie in whatever way you could. Swan seems to do a nice job of this, spending some of their efforts on education, proselytizing, etc.
With that as context, is there any regard in which miners would have a competitive advantage in the lightning ecosystem?
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Diversification is good for any business, I just don't think there's anything that transfers over specifically from mining operations to lightning node routing yeild.
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in this case i was thinking about public miners that hold bitcoin on their balance sheets, lots of companies with 100s or 1000s of BTC sitting idle right now.
that being said, i hear the concerns about lightning distracting miners from their core business and the lack of a competitive advantage.
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Yeah if the only thing there is having a lot of Bitcoin, then no I don't think anyone in that position should be going out deploying it on lightning expecting any yeild. At those numbers it is more a liability than it is a wise investment.
I don't think routing profits should be expected by anyone that isn't building products or services on top of lightning specifically around their node which is also routing. Can't just insert yourself into the network and expect anything.
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yeah that’s fair
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