BEFORE YOU COMMENT - It's likely your question is already answered here: Q: Dude, your estimate is really low. A: Yes, it's supposed to be low. The whole intention was to simply get an absolute minimum amount of what 2b2t is estimated to be worth. Q: You valued 2b2t incorrectly. Why did you ADD the liabilities to the value? Wouldn't you normally subtract them? A: There is no set way to value a company. Everyone does it differently because in the end, if the server was to be sold, it would be up to both parties to agree on a final price. In this case, I decided to add the liabilities with the idea that you would be also be paying for the investment made into the company. Plus, even if I ended up subtracting those liabilities, it would barely make any change to the final estimated value. Read the disclaimer at 0:57. Q: The backup server is likely not a physical machine that Hause owns. A: I got a lot a DMs about this after I released the video with some evidence to prove that the map backup is likely stored on a cloud server. This actually makes more sense as building and co-locating a backup server wouldn't make as much financial or practical sense. Certainly an oversight by me on that one. Q: 2b2t is worthless. A: It's not. Change my mind.
The biggest mistake in this video is that most people who voted in the 4% dont use priority queue. If you put up a poll saying "Which continent is France in" There will be around 2% people saying South America
@@anareaforakinglikeme3029 the people saying its "priceless" are missing a point. If hausemaster was offered 1b usd to shut down the server and not allow anybody to play on that map again then he would do it. There is nothing immoral about that as it is just a block game and most of the "art" there is still visible to people through social media.
Its probably not normal ssds they have some endurance but for something like a server in raid you want server grade ssds who are *really* expensive even on second hand market
I genuinely wonder how hause is doing. They've been extremely silent, in fact we don't even know if Hause is a real person anymore and not just a group. Its so mysterious
That is just so wrong on so many levels lol 1. "hause" admits its not hause its a team of server operators and 2. they are not mysterious lol they answer every serious email they get
My guess is that the backup server wouldn't be an physical server, rather an enterprise cloud service like Backblaze B2 or Amazon S3. It simply doesn't make sense to purchase and manage a bare metal server machine only for backups (as keeping backups does not require any compute power).
Nah you can run a qnap or synology NAS or just grab an older server with a proper raid card and use that for backups onsite. Having multiple weekly backups doesn't mean that it has to be offsite. Ideally they're running both local backup on a separate device, as well as cloud backups. And if you're trying to take system state backups, yes they do need compute power to run software such as Veeam to allow for compression, management, and restoring of backups.
@@jad_c Not in a data center, no...most issues at data centers is failing hardware and electricity outages...not catastrophic damage, so you'd be find if it were in the box next to it. You would off-site it _after_ that so you don't have connectivity being a potential issue to screw your backup.
Amazon servers are dumb expensive. I would be very surprised if it wasn't just a backup server that used to run the server, and then he upgraded all the hardware and use that one as a backup
Nah dude, the thing doesnt contain those things. If I have learnt anything from 2b2t is that to value those things which are to be gone -or were alredy gone, doesnt make sense, that is to say, the value is a bit for yourself, not on the server. Dont value the destruction, value the friendships, and the friendships really arent part of the server.
@@Hypernerdwithcam Minecraft JE v1.12 is not multi-core optimized so it's actually a great processor for that use case. Using Epyc/Threadrippers would be entirely pointless.
I feel it'd lose a lot if not all of its value if it's sold because the Admin would probably be more active than Hause is and it would kill the server.
how do we know if its hasnt already been sold? the name hausmaster refers to the owner of the server but not a person. we will never know if the current hausmaster is still the original one that founded 2b2t
The server hosting costs are not assets, they're liabilities. If you bought 2b2t that would be your expense to pay, you wouldn't acquire $7200/yr worth of anything.
@@a2pabmb2 Yeah, and if I bought a money printing machine for $50,000 and have used $20,000 of paper and ink I don't go and sell the money printing machine for 70 grand, I see what you're going for but you don't account for the expenses that got the money printing machine to where it is, just count how much it actually makes
I doubt Hause would ever let go of this server, I know I wouldn't. I think the server would count as art not only because of the map, but for events that happened on the server, milestones achieved, and the culture.
its literally its own civilization in minecraft, a country separated by a physical barrier, with its own customs, traditions, history, and culture. it would be kind of hard to put a value on that
Great video highlighting the raw asset value, monthly revenues & expenses, etc. $1.6mm does seem very much like a lowball valuation, but for reasons different than you highlight. What you are paying if you were to buy the server are the raw assets (server hardware, domain name) and all the data on them - all the bits and bytes that make up 2b2t. The first stab at valuation is getting at what's called "book value", or the exact cost it would take to buy this hardware. As you point out, though, this is very much understated since someone replicating the exact hardware setup of 2b2t still doesn't own a server that IS 2b2t; financially this matters because 2b2t essentially has a competitive advantage (network effect) that makes that specific set of colocated hardware more valuable than just the raw off-the-shelf cost to replicate the set up, and this brings us to the next step of the valuation - the earnings power. As you point out, Hause is (conservatively) raking in around $1.1 million operating profit (i.e. pre-tax) annually. Let's additionally throw on a 33% tax rate and say it boils down to $737k after-tax profit each year. Here is where your analysis goes wrong - you add the $1.1mm pre-tax profit to your estimated auction value for the "art" of the 2b2t map and say the server is worth around $1.6mm. However, you are neglecting that the owner is raking in $1.1mm pre-tax profit EVERY YEAR. You're buying the server for not just one year but forever. So what is that $1.1mm pre-tax ($737k post-tax) profit worth TODAY assuming no growth (nor any decline)? That brings one to the concept of a "discount rate", which is a means of translating future cash flows into a present value. Again, assuming no growth nor any decline in the profit of the server (i.e. it will generate $1.1mm pre-tax profit // $737k post-tax profit each year, forever) then there are a range of values based on what this "discount rate" is. This is where investing becomes more art than science. Some will say to use the weighted average cost of capital of a business, but 2b2t has no real cost of capital since it presumably can be operated without any debt, thus the only cost of capital is the required rate of return of the purchaser. If I want to earn a steady 10% on the money I shell out for this $737k after-tax profit stream, the value (based on the formula for a perpetuity, meaning a cash flow stream that is constant forever is): = $737,000 / 10% = $7.37 million If there is conceivably some level of growth in the priority queue subscribers (and thus in top line growth) that more than offsets growth in the cost structure then this flows to the bottom line (profit) and one would adjust the valuation for some assumed base level of growth. Look up "growing perpetuity" or "2 step dividend discount" or "Gordon Growth Model" if interested further. And you could optionally throw on the auction value of the 'art' aspect of the server on top of this, so long as the terms of auctioning the "art" of the server's map do not transfer any ownership rights to the earnings stream of the business. Tbh you could probably get a lot more than $500k at auction if someone set up some kind of vehicle like a DAO and tokenized the "art" of the server map with a crowdsourced auction, like Constitution DAO, and let the masses of 2b2t fans all pitch in a small amount for partial symbolic ownership without any true ownership, but I think this is a very scummy thing to do and hope it never happens. Source: professional investor
Hausemaster is such a good owner/group ngl. Considering it's a server full of exploit abusing hackers hes done a very good job at keeping information private as well as keeping the server running.
@JacklStar because he made his when anarchy wasn’t popular and it just had massive success. If anyone tried to make another one nobody would play and they would just be told their copying 2b2t.
It seems like HauseMaster has made his best investment in his life, keeping 2b2t alive for all those years, the fact that he probably could made $100.000 USD a month is just mind blown to me, but also makes sense since he got huge bills monthly for the server to even run.
@@trailfork7815 u good bro? It’s probably more than 100k a month. There are other servers out there with much less publicity that make more than 100k a month. I think you’d truly be surprised how much money Minecraft servers can make
@BigmacYT most game servers only consume 1k USD a month in electricity, far cry from 100k even if haus made 3 more servers the electricity bill still wouldn't scratch how much he earns per month
Did you not watch the video? He used a TH-cam POLL to make up some number….. bruh, ah yes, because TH-cam polls totally give reliable data and no one lies…. I’m so confused how he uploaded thus
@@sirwabaloo7930 He put so little effort on trying to find the # of prio queue users which is literally the bulk of the value. He could've also compared his data with the 2b2t Society Project's
I completely agree with your estimates, it's crazy how profitable minecraft still is. Back in the day even smaller servers were raking in this amount though, so I would really assume hause is pulling in a few million a year before development expenses The server has to be worth at least 5 million, and for all we know it could've been sold already and hause is another person behind the same accounts
The only estimate I don't agree with is priority queue estimate. sal didn't account at all for fake votes on the poll. I would not have just taken the 4% at face value full fact. I would have probably removed at least half a percent
@@TechX1320 yeah but theres also a LOT more active 2b2t players who dont know watch his channel then ones who do. thats why he doubled the number, because even including fake votes theres still tons unaccounted for.
Company valuation when it comes to “purchasing” a company is much different overall, but this definitely a good starting point of the type of money that 2b2t is raking in. Crazy stuff!
@@rodrigopetrus1978 It depends on factors like managment quality, intellectual property, customer trust and fiscal history, apart from just plain Assets/liabilities calculation. Usually a team of lawyers and accountants is assisting with an aquisition in order to asses all the factors that may impact the valuation. This process is called due dilligence.
@@player400_official Yes this is true. I just can't understand how people decide which multiplier to use, whether it's 5 years, 10x or some other value.
I think, even though the server earns Hause 1mil $, investors still shouldn't buy it, since people could stop playing 2b2t knowing that Hause is not the owner anymore, everyone would remember the situation with iTristain, therefore, less people would buy prio, therefore, the price paid for the server would be less.
@@Darknova67 "his email style and tone completely charged a couple years back" well, that happens, I suppose he was maybe in his early 20's when he started the server, so as he grew up older he just started to articulate differently
2b2t has been sold so many times for the last few years. My theory is Microsoft was putting the one who was Hausemaster in a beggining between the sword and the wall and had to sell the server before Microsoft f***** him. Then, seeing all the patches and censoring that happened last years, I think that 2b2t became a hot potato: A lot of people wanted to buy the server but once they owned it they realised its losing money and Microsoft was always there threating to close the server. So everytime someone got 2b2t had to choose between 3 options: Not change anything, which leads to Microsoft closing the server for being racist, homophobic and everything. Make the server family-friendly, which leads to the community dying and loosing all the owner's money. Sell it to other person without that other person knowing that's he's gonna get f***** even harder. Probably someone got just the last months the server, and he was the first one not taking the third option and choosed the second one for the first time. So yeah, 2b2t was already condemned to die since a few years ago :)
i think estimating priority queue subscribers from a youtube poll grossly overestimated the actual amount of people who pay for it but in fairness i dont even know how you could try to estimate it another way accurately nonetheless great video :D
@@pants1403 I think it's at least not the worst, cuz the trolls voting yes would probably account for the prio queue users who don't watch the channel. Doubling it was a bit questionable tho, I'm not sure I can believe that 2b has that many people paying for it, but the original number from the poll does actually seem pretty reasonable.
@@Slaking_ lol, estimates cannot be done by hoping that a data is ok and trolls account for people that don't see the poll. Or that the data seems okay from your prior ideas.
A good starting point for valuation of a business is annual gross revenue times two. I agree with your opinion that the value of the map requires a kicker. Assuming 5k paying for priority queue and at least 600k for the map that would put my starting valuation at around $3 million US minimum. I loved the shoutout to FitMC.
3:10 This is one of the many points you might've made an error. For all we know the cold storage could be put onto a cloud provider solution such as AWS S3 buckets, decreasing the cost of cold storage to pennies.
@@hariranormal5584 you can choose the plan where you have access to the data after 12 hours or so and thats fucking cheap for just a few terabytes, have a look at their website
@@whythosenames Egress fees are stupid high for that, I mean, if the income rates are actually true, the owner surely wouldn't lose a sweat paying them. But something just tells me he'd not use a service as "robust but expensive" as AWS. Already by looking at where the main server is hosted on, it's at a more of a mid tier datacenter and not some high end one.
I think housemaster lies about the hardware. With the shear size it would make more sense running it on a 64 core AMD epyc server processor with proper server grade hardware like ecc ram for reliability. In a data center.
With all the insane tech some of the 2b2t community creates, and how nefarious some of them are, I'm surprised the identity of Hause hasn't been discovered
The server costs need to be adjusted for the time he bought it, recently all pc parts are like 50-70% more expensive giving you an inflated value for the server costs.
I can atleast luckily say RAM and CPU and MOBO are cheap again in my country, I managed to get 3200mhz DDR4 ram, a mobo and i5 10600k for 300 euro with some bargaining!
1.6 million value seems like a serious low ball. If he's bringing 1.1million in revenue each year then in 1 and 1/2 years it pays its self off. In reality if a company wanted to buy 2b2t they would be more likely to pay 5 million given how long itwouldtake for it to pay that back.
I was thinking the same thing. It's not really worth selling for Hause right now though since it's a steady income as long as he keeps the server running.
Not sure i would assume everyone that voted yes on the poll actually pays for priority queue. Loads of people probably just voted yes at random, to inflate the numbers or just to see the results tbh
@@alanmiraanime you cannot know if it is accurate or not. It is bs to do a poll and believe that it should be reasonable because not everyone will see it. Wtf
$1.6M actually makes sense with that breakdown and could be a low estimate. There is a compromise cause when you purchase a business, you don't want it to take long to turn a profit. Personally, considering that map alone being a art piece and also the revenue it can generate. I would not let it go unless I could sell off comfortably and not feel like I am losing much of my current lifestyle. This is an interesting thought. It's not just about an offer that would sound appealing, but it's also who's buying it and I would want to know what their plan is to run the server. I would draw up a contract with a provisionary/probationary period where I can terminate the contract and sell of the server if it's being mismanaged. I guess I'd transfer over the existing staff. I would want to remain on board as a consultant on what ideas should made until I feel comfortable with the new owner.
priority queue's possible revenue is something i never thought of until now, kinda insane how much hausemaster can profit out of this, i mean it will be kinda nice to know his revenue for scientific purposes
Nonetheless, it wouldn't just be RAID 1 either as suggested in the video. It's either RAID 10 or a ZFS pool with a raidz vdev. Hopefully not using hardware RAID cards and risky RAID 5 or 6. Although I'm not an expert on this. In terms of raidz, it would benefit on reads anyway, which I suspect the server does more of than writing (i.e. loading chunks when players wonder). For backups to the aforementioned backup server, I have no idea what's being done. ZFS snapshots and ZFS send to the backup server? The only problem with Minecraft (and Paper, by extension) is that the only way to guarantee a perfect backup is to stop the server process first: I do know this from experience and chatting with Paper devs. With a world size at 13TiB, it would have to be differential or incremental backups if not using ZFS snapshotting. In my opinion, if Hause is going to do online backups (meaning not stopping the server temporarily to take a snapshot), then he can pass 'save-off' to the Paper server console, take a ZFS snapshot of the dataset containing the server directory, and then send 'save-on' to the Paper server console afterwards. Then take the snapshot data and do whatever is needed with it (e.g. archive or ZFS send to other server) then delete older snapshots. Online backups of Minecraft servers currently do NOT guarantee that data isn't changed. Save-off and save-on only affect chunk saving, not player data or plugin data, as far as I'm aware. As someone else mentioned, other than for pure redundancy, having a backup server on-site for the main server makes no sense. However, backups to a cloud service for data of this magnitude gets pricey very quickly.
What makes you say hardware raid cards are bad lmao? The entire world runs on them. I assume you meant software raid. Good points on the offsite costs, people are forgetting that its not just 13tb sent once, but the incrementals add up and if you can't cleanly do differentials like you mentioned then thats a ton more data to deal with.
I'm a storage expert, if n+2 parity is perfectly fine for multi billion dollar projects its certainly fine for 2B2T. So raid 6 is fine as long as there are backups and replicas.
@@caffeinepizza ZFS sees almost no use in the top companies though. I know because I work with them, the Apples the Teslas and the Facebooks of the world mostly ignore zfs.
6:54 Reddit's Place was a project in 2017 where people could change the color of one pixel every 5-20 minutes. The resulting artwork is a bit like a Minecraft map. Specifically blocks placed to put on an in-game map like the 2B2T Times newspaper. Everyone can place blocks and change the map and together they turned it into what it is now.
Worth is how much someone is willing to pay. I can put all the money in the world into my lemonade stand but if no one buys lemonade is my company still worth the money I put into it? No.
i think 500k is a little on the high side in my opinion mainly because of the factor of the person who buys the server will see is as an investment meaning to recoup the cost they will even increase revenue streams by upping the queue or put in microtransactions which would affect the playerbase revolting and not playing.
Yes but Sal is also underestimating/ignoring the business element. Hause makes 1.1 mil in revenue from donations and the server costs $100-200k at most. In other words, this minecraft server generates $1 million a year.. as such, any reasonable starting bid would have to be millions.
Your methodology is correct minus one particular aspect. When I sold my business it was: (assets + (annual revenue - expenses)) × 3 = company valuation. And another thing which is hard to be tangible, but the marketing is also considered an asset. Past and current. This is why as a business owner I would have been thrilled for other people talking about my business for free it's free advertising. That advertisement and name recognition especially over so many years has a value. but based off of your numbers alone it would be valued at just shy of $4.7 mil USD. The reason why you multiply it by 3 is because it is a business that is in the black with hard assets producing revenue. You would not sell something that is constantly generating you $1 mil a year for $1 mil lol, that's just silly. And the multiplication by three is a low-ball estimate. For something with this much name recognition you could possibly sell it for 10 or 20 times this valuation. But that's why I said valuation, not how much it would cost, that is up to the buyer.
@@funnyclips.central if someone hasn't bought or sold a business/brand it's extremely tricky to put a solid price. But I think the video did a great job of getting assets revenue and expenses. It's the conclusion that was mildly off but I forgive someone who wasn't a business owner
You can probably actually double the server cost storage wise, since they did do a whole other server in a newer version of Minecraft with a clone of the 2b2t server
I find it hard to believe that such a big server can run on just a consumer-grade CPU (albeit a high-grade one) and reasonably specced gaming rig. So if that's true, it's pretty remarkable the server even still works.
The networking fees for that is at least an another million a year. Moving ~10 terabytes to an external location generally costs around $100. There's also the need for load balancing etc. misc servers, which are probably another $5K a month.
Sal, I absolutely respect your work and what you did here. I don’t think that this makes a big difference anyways, but please inform yourself a bit more about servers before estimating the value of such a server. As said: I don’t think it makes much of a difference after all 😅. This shouldn’t be an insult but just the small note that those numbers are inaccurate.
Yeah, no way the server has 13TB of storage in RAID1, that would be terribly inefficient. It's most likely RAID 5/6 or some similar combination with technologies like ZFS. One or two disks of redundancy
@@xdev_henry NVMEs have a much longer life expectancy than HDDs. A dead drive is already rare, if that happens, just replace it, so a full RAID1 would be definitely overkill (and is not frequently used in any business), especially considering that it has to be upgraded relatively often with how much 2b2t has grown and could grow. Lastly, RAID5/6 is so much faster than RAID1, where the data has to be written twice on two disks, while it can be written simultaneously on different drives
@@maurofoti526 I'm not sure where you got your data from, but RAID 5/6 have notoriously slow write speeds. It takes at least four IOPs for every write because the controller needs to read data from the striped set to update the parity blocks (read data, read parity, update data, update parity), versus two for RAID 1 (update data, update redundant data). RAID 6 is even worse due to the additional parity data it brings to the table. The main point of those levels is to maximize available storage space while still offering redundancy and reasonable read performance. In terms of raw performance, particularly with Minecraft, RAID 10 is the most likely candidate. Reads are even faster than RAID 5 due to having a second set of striped data to work with and the write speed doesn't take nearly as much of a hit due to the lack of parity calculations. The only obvious downside is the cost of building an array, but I doubt that's a consideration here.
@@Spectere i don't have any data at hand, but with raid1, you need to write the data twice in two separate disks, while with raid5 you divide the data for every disk and they can write in parallel. With all the parity checks and overhead, you still only write 1/(n-1) of data over n disks, in parallel.
Why would Hause sell the server for slightly more than it makes him per year? I think you'd have to offer a lot more for him to even consider it. Also for a server this size, and the amount of income he is making, I'm surprised at how weak the hardware is, specifically thinking of the CPU.
@@Very_Questionable not really :/ Xeons/Threadrippers does not have the greatest clockspeed that Minecraft profits from. It would make sense IF Minecraft gets multithread support
@@Hypernerdwithcam it's the server not the game client I do know that the game client doesn't support multithreading, but I'm pretty sure Mojang would give server support. Right? I hope so... If not then idk how tf hypixel runs
I believe dinner bone has been doing some testing with multi threaded chunk loading years ago but it wasnt stable, getting a 3990x will certainly not help, in fact it will only hurt performance.
If i remember correctly, Vikstar123 hosted an smp server and made clear its a rather lucrative business. He said he gained over a million in a year on the server. And 2b2t probably earns even more. Logistically it doesnt seem improbable that hes already a millionaire.
Crazy to think that Hause still has that much storage capacity considering Raiding your HDDs or SSDs essentially HALFS the total amount that can be stored on it from the original amount.
And how would you go about downloading the entirety of the map? There isn't a neat function that lets you download every single generated chunk ever, and when there is, it's an exploit and a big problem.
@@GeorgeDCowley Because minecraft has a rather efficient method of storing data: It measures changes to chunks. These are stored in a folder as region files, so you just need to look for the region files outside of spawn that have a high size and you've got a log of the most changes and exactly where they all are.
Regarding the "lol that's so slow" at 3:03 : 15k drives are pitifully slow when compared to even regular ssds, let alone nvme. We're now at the price point that enterprise read intensive SSDs are about the same cost of 15k drives so there's almost no reason not to get ssds now when building a server if you're not running storage of a SAN. Also no one is going to dedicate you a 10gb circuit, and certainly the 2b2t server doesn't need it, and you definitely won't be paying just $600 for that. You'd be sharing a multi gig circuit plus to fit a pc case and other hardware you'd be looking at renting a quarter to a half rack.
"popbob has teleported to your server room" im dying hahaa. just imagine popbob showing up IRL with tnt and ligther and gasoline to the housemasers house
@@xjerrylee22x It isn't tho, he said it himself, he can't assume that all priority queue buyers follow him. Therefore it would be better to use [ 4/100 * (amount of active 2b2t players) ] and you have a more accurate figure than just doubling his own pole's results.
If 2b2t has an annual revenue of $1M, the server itself can easily value at $5-10M, not at only $1.6M. 2b2t can be expected to generate revenue in the following few years, so it can earn way more than $1.6M for the owner in the future.
Hausemaster just goes through life enjoying total financial freedom, doing what he wants on his spare time, and not a single person outside of his social circle and accountant would ever know. That's the dream.
That logic doesn’t make any sense sure you can destroy everything by resetting the world data but you could also do the same thing to painting by ripping it
well mr hause isnt probobly ever going to sell it, with it bringing him a mil a year like after 11 years, if 2b shut down forever right now he wouldnt ever have to work a day in his life
If let's say he makes 1mill a year in subs as a low estimate.... then say u spend 500k a year on upgrades, running cost, software, etc..as a high estimate. Who ever is looking to buy can expect 500k a year in free and clear profit as a LOW ESTIMATE!.... so base ur offer off that. I would want to make my money back in 5 years at the most before I can see a profit on my money, so 2.5mill seems like a fair and educated appraisal/ offer.
There's no way it's only worth 1 million for an investment that nets you 1 million per year. Take into account the ROE people are willing to take over 5 years, and it could easily by sold for at least 5 million.
BEFORE YOU COMMENT - It's likely your question is already answered here:
Q: Dude, your estimate is really low.
A: Yes, it's supposed to be low. The whole intention was to simply get an absolute minimum amount of what 2b2t is estimated to be worth.
Q: You valued 2b2t incorrectly. Why did you ADD the liabilities to the value? Wouldn't you normally subtract them?
A: There is no set way to value a company. Everyone does it differently because in the end, if the server was to be sold, it would be up to both parties to agree on a final price. In this case, I decided to add the liabilities with the idea that you would be also be paying for the investment made into the company. Plus, even if I ended up subtracting those liabilities, it would barely make any change to the final estimated value. Read the disclaimer at 0:57.
Q: The backup server is likely not a physical machine that Hause owns.
A: I got a lot a DMs about this after I released the video with some evidence to prove that the map backup is likely stored on a cloud server. This actually makes more sense as building and co-locating a backup server wouldn't make as much financial or practical sense. Certainly an oversight by me on that one.
Q: 2b2t is worthless.
A: It's not. Change my mind.
Theoretically
*Hause could’ve already sold the server and he’s account*
The biggest mistake in this video is that most people who voted in the 4% dont use priority queue. If you put up a poll saying "Which continent is France in" There will be around 2% people saying South America
Worthless in terms of priceless. It's precious
@@anareaforakinglikeme3029 the people saying its "priceless" are missing a point. If hausemaster was offered 1b usd to shut down the server and not allow anybody to play on that map again then he would do it. There is nothing immoral about that as it is just a block game and most of the "art" there is still visible to people through social media.
Its probably not normal ssds they have some endurance but for something like a server in raid you want server grade ssds who are *really* expensive even on second hand market
I genuinely wonder how hause is doing. They've been extremely silent, in fact we don't even know if Hause is a real person anymore and not just a group. Its so mysterious
Remember the "Hausemaster left 2b2t forever"? Maybe it is run by a group or someone else all the time.
That is just so wrong on so many levels lol
1. "hause" admits its not hause its a team of server operators and 2. they are not mysterious lol they answer every serious email they get
They?
@@TadaHrd multiple people, also gender neutral cuz we know literally nothing about hause, or hause is non-binary idk
@@rcon3209 but thats impossible, theres only 1 or 0. (Computer joke)
"Welcome back to the oldest anarchy server in Minecraft, which I now own" -FitMC
no
@@aditive3906 lmao
Let’s hope he does that for an April Fools
@@spicybreadproductions1972 but he uploaded it in April Fools, and at the same time he really owns it.
introducing the new baldness plugin
I never realized how much money just that skip queue thing can make that’s insane
He took me in on a ride-along and showed me just how much money even a small queue skip operation could make. And I was weak
@@TrevoltIVyup, and if it wasnt for 1 simple feature... The service would probably be sold or stop running.
@@Deniil2000 Hank works for the 2b2dea????
I
"Yeah I have a millionaire salary."
'Wow! Are you an astronaut? The president? A CEO?'
"Nah bro I just host a Minecraft server."
bruh
bruh
bruh
bruh
a lot of ppl have millionaire salary without being astronauts presidents or ceo xd
My guess is that the backup server wouldn't be an physical server, rather an enterprise cloud service like Backblaze B2 or Amazon S3. It simply doesn't make sense to purchase and manage a bare metal server machine only for backups (as keeping backups does not require any compute power).
it also kind of defeats the purpose of a backup server if it is in the same area as the actual one
@@jad_c have you guy never hear NAS/ offsite backup server ?
Nah you can run a qnap or synology NAS or just grab an older server with a proper raid card and use that for backups onsite. Having multiple weekly backups doesn't mean that it has to be offsite. Ideally they're running both local backup on a separate device, as well as cloud backups. And if you're trying to take system state backups, yes they do need compute power to run software such as Veeam to allow for compression, management, and restoring of backups.
@@jad_c Not in a data center, no...most issues at data centers is failing hardware and electricity outages...not catastrophic damage, so you'd be find if it were in the box next to it. You would off-site it _after_ that so you don't have connectivity being a potential issue to screw your backup.
Amazon servers are dumb expensive. I would be very surprised if it wasn't just a backup server that used to run the server, and then he upgraded all the hardware and use that one as a backup
2 cents and a snickers bar
Too expensive
and a piece of string
and a button
I'll give ya a.... 19 year old Reese's
Lmao
I'll be honest I was expecting the map to be calculated with NFT prices lmao
@Winsi Samday Report this
@@Spian45 Consider it done.
@@zierin705 same
@@Spian45 I did when it just hit my notifications, 12 hours later, still no delete, yt moderation sucks
it has been done.
In conclusion it's worth: 10+ years worth of thousands of players' creations, destruction, friendships, rivalries, and history. Priceless.
Nah dude, the thing doesnt contain those things. If I have learnt anything from 2b2t is that to value those things which are to be gone -or were alredy gone, doesnt make sense, that is to say, the value is a bit for yourself, not on the server. Dont value the destruction, value the friendships, and the friendships really arent part of the server.
Nooo my block game history
@@batmanbatman3840 Its like saying the art is worth nothing, the artist is worth everything. We can't buy artists, that's why people buy paintings.
Not priceless it’s a Minecraft server for neck beards
Yeah. It's like valuing Mona Lisa by the cost of the colors and brushes that was used to make the painting. The painting it self is priceless.
It would be interesting to see a professional firm make an audit on the server.
The fact that there's the cent sumbol in his glasses, but the final estimate is 1.6M
That RuneScape music was totally unexpected, what a rush of nostalgia from 2011.
instantly recognised it and scrolled down to see if anyone else did!
hollow knight music also
I'd wouldn't say the server is worthless, but priceless. The rich history and impact on minecraft's culture is beyond the maintenance costs
Well the specs of the machine kinda sucks, and not really something that should be considered when calculating 2b2ts worth
@@Hypernerdwithcam so an i9 and fucking RAID M.2 SSDs "kinda sucks" then what are your specs? A quantum computer?
@@Hypernerdwithcam Minecraft JE v1.12 is not multi-core optimized so it's actually a great processor for that use case. Using Epyc/Threadrippers would be entirely pointless.
@@Misha-dr9rh well it is a high-end gaming machine, nothing else. For a company that kind of asset just does not matter.
On the poll I voted "It's worthless," then commented that "By 'worthless I mean 'priceless'" - and I'm not the only one I saw.
I feel it'd lose a lot if not all of its value if it's sold because the Admin would probably be more active than Hause is and it would kill the server.
how do we know if its hasnt already been sold? the name hausmaster refers to the owner of the server but not a person. we will never know if the current hausmaster is still the original one that founded 2b2t
@@ANMA133
In a few years, by SalC1 or FitMC: history of all past Hausemasters
@@ANMA133 so like avatars? 💀
@@black_rhino241 they could be selling the account associated with 2b as well but we'll never know
@@Sherolox facts
The possibility that Hause is making 7 figures over a Minecraft server is crazy
The server hosting costs are not assets, they're liabilities. If you bought 2b2t that would be your expense to pay, you wouldn't acquire $7200/yr worth of anything.
That’s a measure of what is invested in the server
@@sameaton2275 Yes, but if I sell you a car that is worth $10,000 and that uses $2,000 worth of fuel per year, are you going to pay me $12,000 for it?
also, if you're including the upkeep as part of the cost of the server, you'd have to subtract all priority queue profits from that cost as well
@@markwhi1 We're not talking about a car, we're talking about a money printing machine.
@@a2pabmb2 Yeah, and if I bought a money printing machine for $50,000 and have used $20,000 of paper and ink I don't go and sell the money printing machine for 70 grand, I see what you're going for but you don't account for the expenses that got the money printing machine to where it is, just count how much it actually makes
I doubt Hause would ever let go of this server, I know I wouldn't. I think the server would count as art not only because of the map, but for events that happened on the server, milestones achieved, and the culture.
its literally its own civilization in minecraft, a country separated by a physical barrier, with its own customs, traditions, history, and culture. it would be kind of hard to put a value on that
@SeptiK which bot?
@@bonshideout username "A" with a verification mark
@@Ikxi Didn’t see that but that sucks
and also because the server makes millions of dollars a year
Great video highlighting the raw asset value, monthly revenues & expenses, etc. $1.6mm does seem very much like a lowball valuation, but for reasons different than you highlight.
What you are paying if you were to buy the server are the raw assets (server hardware, domain name) and all the data on them - all the bits and bytes that make up 2b2t. The first stab at valuation is getting at what's called "book value", or the exact cost it would take to buy this hardware. As you point out, though, this is very much understated since someone replicating the exact hardware setup of 2b2t still doesn't own a server that IS 2b2t; financially this matters because 2b2t essentially has a competitive advantage (network effect) that makes that specific set of colocated hardware more valuable than just the raw off-the-shelf cost to replicate the set up, and this brings us to the next step of the valuation - the earnings power.
As you point out, Hause is (conservatively) raking in around $1.1 million operating profit (i.e. pre-tax) annually. Let's additionally throw on a 33% tax rate and say it boils down to $737k after-tax profit each year. Here is where your analysis goes wrong - you add the $1.1mm pre-tax profit to your estimated auction value for the "art" of the 2b2t map and say the server is worth around $1.6mm. However, you are neglecting that the owner is raking in $1.1mm pre-tax profit EVERY YEAR. You're buying the server for not just one year but forever. So what is that $1.1mm pre-tax ($737k post-tax) profit worth TODAY assuming no growth (nor any decline)? That brings one to the concept of a "discount rate", which is a means of translating future cash flows into a present value.
Again, assuming no growth nor any decline in the profit of the server (i.e. it will generate $1.1mm pre-tax profit // $737k post-tax profit each year, forever) then there are a range of values based on what this "discount rate" is. This is where investing becomes more art than science. Some will say to use the weighted average cost of capital of a business, but 2b2t has no real cost of capital since it presumably can be operated without any debt, thus the only cost of capital is the required rate of return of the purchaser. If I want to earn a steady 10% on the money I shell out for this $737k after-tax profit stream, the value (based on the formula for a perpetuity, meaning a cash flow stream that is constant forever is):
= $737,000 / 10% = $7.37 million
If there is conceivably some level of growth in the priority queue subscribers (and thus in top line growth) that more than offsets growth in the cost structure then this flows to the bottom line (profit) and one would adjust the valuation for some assumed base level of growth. Look up "growing perpetuity" or "2 step dividend discount" or "Gordon Growth Model" if interested further.
And you could optionally throw on the auction value of the 'art' aspect of the server on top of this, so long as the terms of auctioning the "art" of the server's map do not transfer any ownership rights to the earnings stream of the business. Tbh you could probably get a lot more than $500k at auction if someone set up some kind of vehicle like a DAO and tokenized the "art" of the server map with a crowdsourced auction, like Constitution DAO, and let the masses of 2b2t fans all pitch in a small amount for partial symbolic ownership without any true ownership, but I think this is a very scummy thing to do and hope it never happens.
Source: professional investor
Very good analysis. Enjoyed reading this.
Great technical analysis.
Makes a lot of sense
i go to an econ university, still learning about this stuff, your explanation is better than some professors 😂 Well conceived and interesting to read.
Hausemaster is such a good owner/group ngl. Considering it's a server full of exploit abusing hackers hes done a very good job at keeping information private as well as keeping the server running.
As expected for an anarchy server
well lets not forget that the priority ban list just passed 400 players
Hausemaster being an elite collective of admins like some shadowy council is completely on-brand for 2b2t.
I imagine he’s like a scientist running some type of social experiment, kinda like how economists studied WoW’s economy.
@@mpyb8176*the oldest anarchy server in Minecraft.
“That means Hausmaster makes at least $1.1 Million per year!”
Damn, what am I doing not making my own anarchy server…
Because yours would fail 🤣
Death threats and hacking attacks would cost you your entire life
You need lot of money for tgw sorbg spqaq yoy lil susy baja 😂
@JacklStar PloudOS is good
@JacklStar because he made his when anarchy wasn’t popular and it just had massive success. If anyone tried to make another one nobody would play and they would just be told their copying 2b2t.
when you’re valuing an asset, the expenses (server upkeep costs) should be subtracted from the final value, not added
no the expenses go on the p&l not the fp
@@uxkwn4894 The expenses go to the new owner therefore it doesn't add value to the server itself
And the resulting profit multiplied by like 5.
someone doesn't know how asset evaluation work apparently :-D
Asssests are what you own so if ur buying the server you would be buying the assets too
It's sad to think that 2b is so valuable, we might never see an entire public world download, even decades from now
maybe you should buy it
Ask hause if he'll take $5000 in crypto
@@Romtec minecoins?
Even if there is a public world download, nobody would download a 13tb file
@@suicideyt you are very wrong people would 100% download a 13tb download file to archive it or just find look for bases
It seems like HauseMaster has made his best investment in his life, keeping 2b2t alive for all those years, the fact that he probably could made $100.000 USD a month is just mind blown to me, but also makes sense since he got huge bills monthly for the server to even run.
True
even if he runs the server 24/7 no way it even comes close to 100k a month lol
@@trailfork7815 u good bro? It’s probably more than 100k a month. There are other servers out there with much less publicity that make more than 100k a month. I think you’d truly be surprised how much money Minecraft servers can make
@BigmacYT most game servers only consume 1k USD a month in electricity, far cry from 100k even if haus made 3 more servers the electricity bill still wouldn't scratch how much he earns per month
@@BigmacYT1 no way in hell his electricity bill even comes close to 100k, can you provide proof Minecraft servers consume more than that
12 dollars, take it or leave it.
Man, I had no idea THAT MANY people had priority queue. I thought it was a couple hundred at most. Crazy how popular this one server is.
Did you not watch the video? He used a TH-cam POLL to make up some number….. bruh, ah yes, because TH-cam polls totally give reliable data and no one lies…. I’m so confused how he uploaded thus
I'd bet the majority of people who pay it don't actually play on the server anymore but forgot to cancel the subscription lmfao
TH-cam polls are literally just 99% randomly recommended to people who just click on the first answer without reading it
@@sirwabaloo7930 Right lmfao.
@@sirwabaloo7930 He put so little effort on trying to find the # of prio queue users which is literally the bulk of the value. He could've also compared his data with the 2b2t Society Project's
I completely agree with your estimates, it's crazy how profitable minecraft still is.
Back in the day even smaller servers were raking in this amount though, so I would really assume hause is pulling in a few million a year before development expenses
The server has to be worth at least 5 million, and for all we know it could've been sold already and hause is another person behind the same accounts
Its just a ripoff. He knows he can make alot of money like this, so he does and makes his prices.
The only estimate I don't agree with is priority queue estimate. sal didn't account at all for fake votes on the poll. I would not have just taken the 4% at face value full fact. I would have probably removed at least half a percent
@@TechX1320 yeah but theres also a LOT more active 2b2t players who dont know watch his channel then ones who do. thats why he doubled the number, because even including fake votes theres still tons unaccounted for.
@@Deltexterity I really dont think most of those votes are legit
@@Deltexterity also owo
update following the '23 downfall:
probably 10 cents if lucky
Thats not a lot of cocaine
Company valuation when it comes to “purchasing” a company is much different overall, but this definitely a good starting point of the type of money that 2b2t is raking in. Crazy stuff!
How is the best aproach to the price of purchasing? 10 times the year? I want to learn more.
@@rodrigopetrus1978 I think it’s 10x the profit of one year
@@rodrigopetrus1978 It depends on factors like managment quality, intellectual property, customer trust and fiscal history, apart from just plain Assets/liabilities calculation. Usually a team of lawyers and accountants is assisting with an aquisition in order to asses all the factors that may impact the valuation. This process is called due dilligence.
@@player400_official Yes this is true. I just can't understand how people decide which multiplier to use, whether it's 5 years, 10x or some other value.
id say the actual physical server is worth 10-100k USD. But the stories, interactions, and history is priceless.
@Winsi Samday bro stop doing this
@Not_Ambrose -Plot twist: Its not a bot-
@Winsi Samday spam
10k to 100k loool So this is my salary but its 11k indeed
I've never played minecraft in my entire life, but this stuff is so interesting to me.. great videos
Did you play it now?
@@DeinVatersVater Nope! Still havent haha
"I would even put this map into the classification of an art piece" I can't wait to see the 2b2t map nft.....
You would need like 256k resolution to store all of it
I hope that doesn't happen...
Lol,i hope these NFT stuff dies along with cryptocoins
Actually I want to see that.
Fck nft and crypto
I think, even though the server earns Hause 1mil $, investors still shouldn't buy it, since people could stop playing 2b2t knowing that Hause is not the owner anymore, everyone would remember the situation with iTristain, therefore, less people would buy prio, therefore, the price paid for the server would be less.
Fit did a vid about how it's theorized Hause isn't the original Hause anymore, his email style and tone completely changed a couple years back
It would be behind closed doors, chances are it already happened
@@Darknova67 "his email style and tone completely charged a couple years back" well, that happens, I suppose he was maybe in his early 20's when he started the server, so as he grew up older he just started to articulate differently
I really don’t think 2b2t players are petty maybe unless the new owners changed everything
@@Wolfnacht No, it wasn’t articulation or anything, it was the tone. He became more aggressive and straightforward
Prolly like 8 dollars
tree fiddy
Uh buck fiddy
at least 6 bucks
@@pokymovie5543 three. Take it or leave it
Best i can do is $0.25, Mazal?
“You’re really rich! What do you do for a living?”
“Oldest Anarchy Server in Minecraft”
“Except it’s not the oldest, nor an anarchy server.”
this entire video feels like sal just trying to convince us 2b2t is more then just a couple cents
Its worth 10 years of history
2b2t has been sold so many times for the last few years.
My theory is Microsoft was putting the one who was Hausemaster in a beggining between the sword and the wall and had to sell the server before Microsoft f***** him.
Then, seeing all the patches and censoring that happened last years, I think that 2b2t became a hot potato: A lot of people wanted to buy the server but once they owned it they realised its losing money and Microsoft was always there threating to close the server. So everytime someone got 2b2t had to choose between 3 options:
Not change anything, which leads to Microsoft closing the server for being racist, homophobic and everything.
Make the server family-friendly, which leads to the community dying and loosing all the owner's money.
Sell it to other person without that other person knowing that's he's gonna get f***** even harder.
Probably someone got just the last months the server, and he was the first one not taking the third option and choosed the second one for the first time.
So yeah, 2b2t was already condemned to die since a few years ago :)
I clicked before I even got the notif. Hell yeah.
Ispeedy
If only he uploaded more...
and this man still didnt say first
@@mozartmozi7776 You're goddamned right I didn't.
@@EscapesAndRemoves true
i think estimating priority queue subscribers from a youtube poll grossly overestimated the actual amount of people who pay for it but in fairness i dont even know how you could try to estimate it another way accurately nonetheless great video :D
yeah IK lol. People could lie in the click of a button without putting much thought into it
@@pants1403 I think it's at least not the worst, cuz the trolls voting yes would probably account for the prio queue users who don't watch the channel. Doubling it was a bit questionable tho, I'm not sure I can believe that 2b has that many people paying for it, but the original number from the poll does actually seem pretty reasonable.
@@Slaking_ remember some people buy priority for multiple accounts
It suffers from a self reporting bias
@@Slaking_ lol, estimates cannot be done by hoping that a data is ok and trolls account for people that don't see the poll. Or that the data seems okay from your prior ideas.
Well in August of 2023 it's probably worth zero to none now that it's been reset and updated
really?
A good starting point for valuation of a business is annual gross revenue times two. I agree with your opinion that the value of the map requires a kicker. Assuming 5k paying for priority queue and at least 600k for the map that would put my starting valuation at around $3 million US minimum. I loved the shoutout to FitMC.
3:10 This is one of the many points you might've made an error.
For all we know the cold storage could be put onto a cloud provider solution such as AWS S3 buckets, decreasing the cost of cold storage to pennies.
> AWS S3
> pennies
yeah errr please get back on lane
@@hariranormal5584 you can choose the plan where you have access to the data after 12 hours or so and thats fucking cheap for just a few terabytes, have a look at their website
@@whythosenames
Egress fees are stupid high for that, I mean, if the income rates are actually true, the owner surely wouldn't lose a sweat paying them. But something just tells me he'd not use a service as "robust but expensive" as AWS. Already by looking at where the main server is hosted on, it's at a more of a mid tier datacenter and not some high end one.
@@hariranormal5584 true i did not notice the transfer rates also costing that much
The content created with it is probably insanely worthy added together
The maintenance would be EXPENSIVE!
@Winsi Samday You're mother
I don't think it would be as bad considering donors
@@mintcoats *Your.
I would really up the amount on that RAM tbh. 64 gigs I would say is low
Detotated wam
@@matthewfinger2381 🤣
A 12900k supports up to 128gb of ram which is a lot for a pc but not very much for a server tbh
For Minecraft servers it's actually a lot. Adding too much RAM creates MORE issues believe it or not.
I think housemaster lies about the hardware. With the shear size it would make more sense running it on a 64 core AMD epyc server processor with proper server grade hardware like ecc ram for reliability. In a data center.
"I could wonder who that would be"
*puts fitmc in transparent*
With all the insane tech some of the 2b2t community creates, and how nefarious some of them are, I'm surprised the identity of Hause hasn't been discovered
well he/they probably use vpn joining the server. so no matter what kind of plugin. its impossible to find out
The server costs need to be adjusted for the time he bought it, recently all pc parts are like 50-70% more expensive giving you an inflated value for the server costs.
Most of the components are brand new
I can atleast luckily say RAM and CPU and MOBO are cheap again in my country, I managed to get 3200mhz DDR4 ram, a mobo and i5 10600k for 300 euro with some bargaining!
It doesnt matter that much
Ah, our ol' friend the semiconductor shortage
@@Grandmaster-Kush ayo is it a good time to buy a new pc you seem like you k ow about pcs
Nice of you using music from Ori and the will of the wisps, that (beautiful) game (with *great* music) deserves more attention!
1.6 million value seems like a serious low ball. If he's bringing 1.1million in revenue each year then in 1 and 1/2 years it pays its self off. In reality if a company wanted to buy 2b2t they would be more likely to pay 5 million given how long itwouldtake for it to pay that back.
I was thinking the same thing.
It's not really worth selling for Hause right now though since it's a steady income as long as he keeps the server running.
Not sure i would assume everyone that voted yes on the poll actually pays for priority queue. Loads of people probably just voted yes at random, to inflate the numbers or just to see the results tbh
True
Btw Twitter is stupidly broken with pools. I mean, i can never vote in any pool. Every time it already have my vote, always random.
yeah, but a lot of 2b players also don't watch Sal, so it isn't that innacurate.
@@alanmiraanime you cannot know if it is accurate or not. It is bs to do a poll and believe that it should be reasonable because not everyone will see it. Wtf
$1.6M actually makes sense with that breakdown and could be a low estimate. There is a compromise cause when you purchase a business, you don't want it to take long to turn a profit. Personally, considering that map alone being a art piece and also the revenue it can generate. I would not let it go unless I could sell off comfortably and not feel like I am losing much of my current lifestyle.
This is an interesting thought. It's not just about an offer that would sound appealing, but it's also who's buying it and I would want to know what their plan is to run the server.
I would draw up a contract with a provisionary/probationary period where I can terminate the contract and sell of the server if it's being mismanaged.
I guess I'd transfer over the existing staff.
I would want to remain on board as a consultant on what ideas should made until I feel comfortable with the new owner.
priority queue's possible revenue is something i never thought of until now, kinda insane how much hausemaster can profit out of this, i mean it will be kinda nice to know his revenue for scientific purposes
Nonetheless, it wouldn't just be RAID 1 either as suggested in the video. It's either RAID 10 or a ZFS pool with a raidz vdev. Hopefully not using hardware RAID cards and risky RAID 5 or 6. Although I'm not an expert on this. In terms of raidz, it would benefit on reads anyway, which I suspect the server does more of than writing (i.e. loading chunks when players wonder). For backups to the aforementioned backup server, I have no idea what's being done. ZFS snapshots and ZFS send to the backup server? The only problem with Minecraft (and Paper, by extension) is that the only way to guarantee a perfect backup is to stop the server process first: I do know this from experience and chatting with Paper devs. With a world size at 13TiB, it would have to be differential or incremental backups if not using ZFS snapshotting. In my opinion, if Hause is going to do online backups (meaning not stopping the server temporarily to take a snapshot), then he can pass 'save-off' to the Paper server console, take a ZFS snapshot of the dataset containing the server directory, and then send 'save-on' to the Paper server console afterwards. Then take the snapshot data and do whatever is needed with it (e.g. archive or ZFS send to other server) then delete older snapshots. Online backups of Minecraft servers currently do NOT guarantee that data isn't changed. Save-off and save-on only affect chunk saving, not player data or plugin data, as far as I'm aware.
As someone else mentioned, other than for pure redundancy, having a backup server on-site for the main server makes no sense. However, backups to a cloud service for data of this magnitude gets pricey very quickly.
@Winsi Samday You're mother
What makes you say hardware raid cards are bad lmao? The entire world runs on them. I assume you meant software raid. Good points on the offsite costs, people are forgetting that its not just 13tb sent once, but the incrementals add up and if you can't cleanly do differentials like you mentioned then thats a ton more data to deal with.
@@Sunny2456- Portability. HBA is preferred with ZFS.
I'm a storage expert, if n+2 parity is perfectly fine for multi billion dollar projects its certainly fine for 2B2T. So raid 6 is fine as long as there are backups and replicas.
@@caffeinepizza ZFS sees almost no use in the top companies though. I know because I work with them, the Apples the Teslas and the Facebooks of the world mostly ignore zfs.
After the 1.19 update - "it's worthless" seems to be the correct answer.
FitMC: "*I'll take your entire stock!*"
6:54 Reddit's Place was a project in 2017 where people could change the color of one pixel every 5-20 minutes. The resulting artwork is a bit like a Minecraft map. Specifically blocks placed to put on an in-game map like the 2B2T Times newspaper. Everyone can place blocks and change the map and together they turned it into what it is now.
But it has way less history and content. It's not nearly as valuable.
Worth is how much someone is willing to pay. I can put all the money in the world into my lemonade stand but if no one buys lemonade is my company still worth the money I put into it? No.
i think 500k is a little on the high side in my opinion mainly because of the factor of the person who buys the server will see is as an investment meaning to recoup the cost they will even increase revenue streams by upping the queue or put in microtransactions which would affect the playerbase revolting and not playing.
Yes but Sal is also underestimating/ignoring the business element. Hause makes 1.1 mil in revenue from donations and the server costs $100-200k at most. In other words, this minecraft server generates $1 million a year.. as such, any reasonable starting bid would have to be millions.
I agree
@@smacpats6379were there legal documents released showing the Servers revenue?
Your methodology is correct minus one particular aspect. When I sold my business it was: (assets + (annual revenue - expenses)) × 3 = company valuation. And another thing which is hard to be tangible, but the marketing is also considered an asset. Past and current. This is why as a business owner I would have been thrilled for other people talking about my business for free it's free advertising. That advertisement and name recognition especially over so many years has a value. but based off of your numbers alone it would be valued at just shy of $4.7 mil USD.
The reason why you multiply it by 3 is because it is a business that is in the black with hard assets producing revenue. You would not sell something that is constantly generating you $1 mil a year for $1 mil lol, that's just silly. And the multiplication by three is a low-ball estimate. For something with this much name recognition you could possibly sell it for 10 or 20 times this valuation. But that's why I said valuation, not how much it would cost, that is up to the buyer.
I 100% agree. I'm surprised almost no one else is pointing out this massive flaw.
yeah I was surprised when it came to the final calculation, makes the entire video flawed and inaccurate.
@@funnyclips.central if someone hasn't bought or sold a business/brand it's extremely tricky to put a solid price. But I think the video did a great job of getting assets revenue and expenses. It's the conclusion that was mildly off but I forgive someone who wasn't a business owner
You are absolutely right. he did a great job at evaluating assets but shellacked the economical background to actually estimate a buying price!
You can probably actually double the server cost storage wise, since they did do a whole other server in a newer version of Minecraft with a clone of the 2b2t server
A villager: 3 wheat is the best i can do
I’d say 2b2t is priceless. It is worth too much that you can’t give it a value
Worthless*
nothing*
Garbage*
@@Lego_Huracan_SuperTrofeo what’s garbage?
@@zam3v 2b2ts value
Love the hollow knight music in the background
I find it hard to believe that such a big server can run on just a consumer-grade CPU (albeit a high-grade one) and reasonably specced gaming rig. So if that's true, it's pretty remarkable the server even still works.
Minecraft doesnt scale well on multi core CPUs. Single core Performance is crucial, and as it turns out enthusiast CPUs are made with that in mind.
@@vanessaxoax7646 That doesn't matter for a server though.
@@EmelieAmber69 It's not just the client that doesnt scale well. The server does neither.
Sal seemed offended by the poll saying it is worthless
It’s more like priceless then worthless
The networking fees for that is at least an another million a year. Moving ~10 terabytes to an external location generally costs around $100. There's also the need for load balancing etc. misc servers, which are probably another $5K a month.
MrBeast be like:
I BOUTH THE OLDEST ANARCHY SERVER IN MINECRAFT AND GAVE IT TO ONE OF MY SUBS!!!! GONE WRONG!!!
I don’t think hausemaster would ever sell it
I like how 50% of people said it's worthless. Totally based
i cant imagine hausemaster goes to a family gathering and they ask what does he do for a living
7:30 The thing is: Someone would have to buy that. And you could also just "duplicate" it.
Sal, I absolutely respect your work and what you did here. I don’t think that this makes a big difference anyways, but please inform yourself a bit more about servers before estimating the value of such a server. As said: I don’t think it makes much of a difference after all 😅.
This shouldn’t be an insult but just the small note that those numbers are inaccurate.
Yeah, no way the server has 13TB of storage in RAID1, that would be terribly inefficient. It's most likely RAID 5/6 or some similar combination with technologies like ZFS. One or two disks of redundancy
@@maurofoti526 yeah… like make 2 drives fail and server‘s gone. Also: 3TB spare when the Map alone is 13TB? Nah, don’t believe it 😅
@@xdev_henry NVMEs have a much longer life expectancy than HDDs. A dead drive is already rare, if that happens, just replace it, so a full RAID1 would be definitely overkill (and is not frequently used in any business), especially considering that it has to be upgraded relatively often with how much 2b2t has grown and could grow. Lastly, RAID5/6 is so much faster than RAID1, where the data has to be written twice on two disks, while it can be written simultaneously on different drives
@@maurofoti526 I'm not sure where you got your data from, but RAID 5/6 have notoriously slow write speeds. It takes at least four IOPs for every write because the controller needs to read data from the striped set to update the parity blocks (read data, read parity, update data, update parity), versus two for RAID 1 (update data, update redundant data). RAID 6 is even worse due to the additional parity data it brings to the table. The main point of those levels is to maximize available storage space while still offering redundancy and reasonable read performance.
In terms of raw performance, particularly with Minecraft, RAID 10 is the most likely candidate. Reads are even faster than RAID 5 due to having a second set of striped data to work with and the write speed doesn't take nearly as much of a hit due to the lack of parity calculations. The only obvious downside is the cost of building an array, but I doubt that's a consideration here.
@@Spectere i don't have any data at hand, but with raid1, you need to write the data twice in two separate disks, while with raid5 you divide the data for every disk and they can write in parallel. With all the parity checks and overhead, you still only write 1/(n-1) of data over n disks, in parallel.
It might be time to revisit this.
I sure hope no bad changes happen!
I sure hope Hause doesn’t do anything drastic with the server
because that 4% isn't amplified by several factors from people trolling/misclicking
Given the large revenue and brand name, starting bid should be closer to $5M than $500k.
500k was for only the map itself. he said at least 1.6m for the server
Why would Hause sell the server for slightly more than it makes him per year? I think you'd have to offer a lot more for him to even consider it. Also for a server this size, and the amount of income he is making, I'm surprised at how weak the hardware is, specifically thinking of the CPU.
yeah, was thinking he probably would put some server cpu on it
using normal consumer hardware especially with this kind of server kinda sucks
@@Very_Questionable not really :/ Xeons/Threadrippers does not have the greatest clockspeed that Minecraft profits from. It would make sense IF Minecraft gets multithread support
@@Hypernerdwithcam it's the server not the game client
I do know that the game client doesn't support multithreading, but I'm pretty sure Mojang would give server support. Right? I hope so...
If not then idk how tf hypixel runs
@@Very_Questionablelol server and single player clients merged ages ago since around 2011
I believe dinner bone has been doing some testing with multi threaded chunk loading years ago but it wasnt stable, getting a 3990x will certainly not help, in fact it will only hurt performance.
If i remember correctly, Vikstar123 hosted an smp server and made clear its a rather lucrative business. He said he gained over a million in a year on the server. And 2b2t probably earns even more. Logistically it doesnt seem improbable that hes already a millionaire.
Crazy to think that Hause still has that much storage capacity considering Raiding your HDDs or SSDs essentially HALFS the total amount that can be stored on it from the original amount.
You're silly mate. The map itself is worth NOTHING. I could download that map tomorrow and start using it myself.
And how would you go about downloading the entirety of the map? There isn't a neat function that lets you download every single generated chunk ever, and when there is, it's an exploit and a big problem.
And by the time you finished, it would have changed.
@@Tonatsi How so?
@@GeorgeDCowley Because minecraft has a rather efficient method of storing data: It measures changes to chunks. These are stored in a folder as region files, so you just need to look for the region files outside of spawn that have a high size and you've got a log of the most changes and exactly where they all are.
@@Tonatsi Which you can use to grief and such.
Hause will probably just hand it down to someone if the server ends up outliving his ability to maintain it.
Regarding the "lol that's so slow" at 3:03 : 15k drives are pitifully slow when compared to even regular ssds, let alone nvme. We're now at the price point that enterprise read intensive SSDs are about the same cost of 15k drives so there's almost no reason not to get ssds now when building a server if you're not running storage of a SAN. Also no one is going to dedicate you a 10gb circuit, and certainly the 2b2t server doesn't need it, and you definitely won't be paying just $600 for that. You'd be sharing a multi gig circuit plus to fit a pc case and other hardware you'd be looking at renting a quarter to a half rack.
It's priceless, the map alone is a relic.
"popbob has teleported to your server room" im dying hahaa. just imagine popbob showing up IRL with tnt and ligther and gasoline to the housemasers house
Nothing. It is worth nothing now.
To calculate priority queue, it might've been better to use the percentage as a ratio, then apply that ratio to the total players of 2b2t
It's almost EXACTLY the same number
@@xjerrylee22x It isn't tho, he said it himself, he can't assume that all priority queue buyers follow him. Therefore it would be better to use [ 4/100 * (amount of active 2b2t players) ] and you have a more accurate figure than just doubling his own pole's results.
500grand for the server itself is quite a number. I'd probably start bidding at 100grand maximum.
If 2b2t has an annual revenue of $1M, the server itself can easily value at $5-10M, not at only $1.6M. 2b2t can be expected to generate revenue in the following few years, so it can earn way more than $1.6M for the owner in the future.
update:
nothing. holy shit the update sucked.
Hausemaster just goes through life enjoying total financial freedom, doing what he wants on his spare time, and not a single person outside of his social circle and accountant would ever know. That's the dream.
0:11 virtually speaking... 0. It's just a minecraft server... you just need to reset the world data and everything disappears.
That logic doesn’t make any sense sure you can destroy everything by resetting the world data but you could also do the same thing to painting by ripping it
Still very much worth bcz it's the oldest
well mr hause isnt probobly ever going to sell it, with it bringing him a mil a year like after 11 years, if 2b shut down forever right now he wouldnt ever have to work a day in his life
well, the operation costs alone probably absorb a decent amount of that... Not saying that he's not making bank, but still
...unless he blew all of his money on his addiction, which he probably would.
@@rosheafan on what addiction
If let's say he makes 1mill a year in subs as a low estimate.... then say u spend 500k a year on upgrades, running cost, software, etc..as a high estimate. Who ever is looking to buy can expect 500k a year in free and clear profit as a LOW ESTIMATE!.... so base ur offer off that. I would want to make my money back in 5 years at the most before I can see a profit on my money, so 2.5mill seems like a fair and educated appraisal/ offer.
you litually took an expense and added it to the server value? 4:15. wtf is this
for the backup server
hi, im a huge fanof ur vids, keep up the good work
There's no way it's only worth 1 million for an investment that nets you 1 million per year. Take into account the ROE people are willing to take over 5 years, and it could easily by sold for at least 5 million.
I love the Ori music you used!
A well deserved like!
2B2T probably worth more if you included how many monthly players play so that could also increase its cost
"But i could only wonder who that would be" *puts there a picture of a history teacher with a youtube chanel*
probably not that much
edit: i was wrong
Yes you were haha