Stake Mining (after halving) with your own node — at what price is it worth it?
Though I’m not really a fan of Bitcoin, I’ve always been fascinated by the fact that its value to a large degree is backed by real world energy costs. The PoS consensus is of course a much cheaper story, but it does come with a certain price and maybe it’s possible to somehow determine at what price the cost of running a node, could eventually carry $FSN-value simply because the node runners considers it cheaper to buy it than to mine it. With $FSN constantly seeming to get thrown down in the gutter, it’s actually something worth thinking a little about, though I certainly hope higher values will eventually carry it on completely different levels.
But let’s get to it… We’re assuming here that there are hundreds of people interested in running single-ticket FSN nodes as long as it can be done in a more profitable manner than through a pool. The exact cost of running a node can be as low as free (through special deals) or as high as 100 USD for premium equipment. I’m going to assume that 30 USD (10 for the node and 20 for the trouble) more in gains/month compared to pooling, is what would draw people to do this. We’re also assuming pools charge a 5% premium that you could avoid by doing it yourself. Reality may be a little more complex, but these are relatively good base assumptions. We also want to look at the situation after halving (where interest earned through staking is assumed to be around 15%), because that is what I find more interesting due to it changing the circumstances drastically.
So… for it to be worthwhile to run your own single ticket node stake earnings need to be 30 / 0.05 / month = 600 USD/month.
The amount of FSN gathered in a month on a single ticket at a 15% interest rate would be 5000*0.15/12 = 62,5 FSN/month.
This would conclude that single ticket node runners are better off buying or pooling FSN than mining it as long a the price of FSN is below 600/62,5 = 9,6 USD.
So in conclusion -according to these considerations- and because people are actually running single ticket nodes, FSN is already pretty undervalued, and after halving - the price it’d no longer be worth buying at for single ticket node runners is: 9,6 USD.
Looking forward to halving!
