Selfhosted
A place to share alternatives to popular online services that can be self-hosted without giving up privacy or locking you into a service you don't control.
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You definitely could, but it's not really sustainable.
Worst case scenario: if everybody does this, and there's 50.000 subscribers on a certain community, then that community will have to update 50.000 other servers whenever one user leaves a single message or vote.
Sure, your own server wouldn't have a hard time, but it every popular server (with lots of subscribers) would. It would either take a long time for you to receive their updates, or you wouldn't get them at all.
The best thing you can do, is join a medium size server: it won't be as overloaded as a big server, and wouldn't cause as much strain on the fediverse as a personal server.
I would think that updating 50.000 Lemmy instances would have a similar performance effect of 50.000 Lemmy users browsing one instance. In that case instance with one user won't benefit the Fedeverse, but shouldn't be an issue either.
Only if the users are browsing All their watched communities 24/7. Otherwise they would only be producing load when they're interacting with Lemmy.