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I know that I can use network sharing to share my cable network connected to Mac mini and turn it into a Wi-Fi hotspot.

I haven't purchased a Mac mini yet. From the description on Apple Store, Mac mini currently has a 802.11ac wireless connection.

I believe using a Mac mini won't perform as well as a Airport Extreme, but I have very few wireless devices(an iPhone, a Macbook and a Playstation), so would there be any big difference between using a Mac mini and an Airport Extreme?

  • You could attach a USB dongle as a second Ethernet connection and make it run pfSense or something - but it's not worth it. Just get a $100 Apple router and be done with it. – Harv Apr 29 '15 at 7:07
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I'd say it's not a good choice. Apart form the energy usage there might be some compatibility issues (since it's an ad-hoc network) and you are quite a few options short (no port-forwarding for example). If budget is an issue, get a cheap router, it will likely still perform better than using the Mac as a router.

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