10. Learnings & Common Questions
To undertake a project like this you need a "why", and for me the why was Bitcoin - I really wanted to understand how it works and get my hands dirty on the tools.
Before running a Bitcoin node, I had never used the Terminal before. Now? I've gone from zero to reasonably dangerous with the command line, Linux, and even networking. I've had Bitcoin Core running smoothly for over 2 years now and use my own node to validate and broadcast all my own transactions, run my own block explorer and my own Lightning node.
It's opened up a whole new world – not just in tech skills, but understanding how Bitcoin really works under the hood. I also became familiar with open-source software and met some great people in the community who have helped me along the way.
Here's the kicker, though: in some ways, running a node on an Ubuntu server is actually simpler than my old packaged node (a Raspiblitz). No layers of apps, services, and dashboards to babysit. Just your Linux OS, Bitcoin Core and a few other services.
Ubuntu vs Packaged Nodes
It's a bit more technical up front – no shiny buttons or user friendly GUIs here – but once you grasp the basics, it's not that hard and there's something raw about executing Bitcoin commands in the terminal. Less stuff to break, fewer updates to stress over, and you know exactly what's running under the hood. After a year with both? The Linux setup's the one that feels solid as and the one I'll keep running.
Common Questions about running a Bitcoin Node
1. What's the weekly time commitment for upkeep?
After initial setup, it's minimal. Expect 30-60 minutes weekly for basic health checks and updates. Ubuntu automates most tasks, so downtime is rare. Just monitor disk space and apply updates when regularly.
2. Will this work on average broadband in New Zealand?
Yes. Bitcoin Core requires ~5GB upload/month once synced – equivalent to streaming a few hours of video. During initial sync (≈24 hours), use unmetered internet or schedule heavy traffic overnight. NZ's standard fibre/cable handles it fine.
3. What if my hard drive fails?
Your private keys are not stored on your node, so if your hardware fails your Bitcoin is not at risk, but you will not be able to make transactions until you restart your node. I run two nodes so I have a backup method of connecting to the network in one goest down. Once you get used to connecting to the network using your own node, using a third party node to make a transaction becomes out of the question.
4. Why Ubuntu over pre-packaged nodes?
Control and simplicity. Pre-built solutions add abstraction layers that can obscure functionality or introduce bloat. Ubuntu offers direct access and streamlined maintenance – once configured, it often runs more reliably with fewer background processes.
5. Can I earn Bitcoin from running a node?
No, not directly. Nodes validate blocks and transactions and strengthen the network but don't mine new coins.
However, running one lets you use advanced wallets trustlessly, participate in Lightning Network routing (which can earn fees), and verify your own transactions privately.
6. What about cloud nodes?
A cloud node (like AWS or Azure) sacrifices three core Bitcoin principles:
- Self-sovereignty: You don't physically control the hardware. Providers can suspend/shut down your node.
- Privacy: Cloud providers can log your IP, metadata, and activity. Self-hosted nodes (especially running over Tor) keep your financial activity private.
- Decentralization: Concentrating nodes in large data centres run by corporations is very centralizing and introduces large points of failure. True decentralization requires geographically distributed, independent nodes.
Self-hosted > cloud: Control your keys, data, and contribution to Bitcoin's resilience.