I have 5Mbps Up and Down. Assuming my site is interactive CMS Web 2.0 database hosted on the best server in the world, would this internet speed hold 500 simultaneously people surfing on my website? (my website is www.skoogo.com)
If you are using "best server in the world", 5Mbps may be enough for handling 500 users. Compress your html, php output, javascript, css before send them to web browser. If you want more info, please PM me.
Depends on the nature of the content of the site. With 500 concurrent users banging on it streaming media etc you might see some latency over 5mps.
That gives everyone 10KB per second assuming every single one of them are doing somthing simultaniously. If the majority of the traffic is repeat visitors where the js/css/etc is already cached on the visitors computer you should be able to handle that easily. If the majority of your traffic is new, there will probably be slowdowns.
Be careful setting up webservers on home connections unless your ISP allows it. Read their TOS. Sometimes they dont mind, sometimes they wont allow it (could suspend or disconnect you), and sometimes they just block the default ports.
Also be aware that there are other issues that can be thrown into the mix, like cooling of equipment, power requirements, etc. I hosted my server(s) at home for a long time but moved to dedicated servers at a provider after having too many power outages due to housing/suburb works and expansion in my area. An hour to 8 hours a week of power outages drove me mad!