I am running a home server, 16gb of ram available, Ryzen 5600x. Performance is alright, but the more spread out players get, the worse lag gets. Going through a nether portal takes 3-5 seconds if there's no one on the other side, during which time you fall through the world (scary as heck, even when I'm used to it) before getting pulled back up.
Even though it's no harm done ultimately, and it resolved, I feel like this would be a lot better if it were just a loading screen rather than falling through the ground until things properly load.