Where to run Jellyfin

[akcapak]

If i have two hardware options where i can run Jellyfin (with Hardware Transcoding) to play my ~5TB media files which are on an external usb disc at the moment, which one should i use?

1- My current miniPC Lenovo m720q (intel i5 8400t + 8gb RAM + 256Gb SSD)

• Pros: i already have Proxmox VE there. I just have to create a new Jellyfin LXC.
  
• Cons: Jellyfin must read those files through the usb port (bad idea?). I have a limited space with my current 5TB external usb drives. So in the future i may have to buy some more external discs. Maybe something like a harddisk docking station like this one: https://amzn.eu/d/dqkhsQM.
  

2- I may buy a Ugreen 2 Bay NAS (intel N100 + 8gb RAM + any NVMe for Jellyfin + any HDD for my media files)

• Pros: I can buy any 8TB or 16TB Disk and i have enough space for the next year. Also everything can be played inside this one device without needing usb.
  
• Cons: NAS + Disks cost quite a bit. And I will have a second device to run, besides my current miniPC.
  

3- Option 2 + move my current Proxmox Installation and every other VM to NAS, besides Jellyfin. Sell miniPC. 

• Pros: 1 Device for all
  
• Cons: ???
  

If you would like to run Jellyfin as fast as possible (for hardware transcoding), which one would you choose? 
Thanks in advance for any tip.

[TheDreadPirate]

Why not 1 + 2? In terms of codec support and transcoding performance, they are pretty similar. And using an actual PC means you aren't locked into how Ugreen does things with their NAS OS. Just use the NAS as a NAS. Create a network share on the NAS, put all your media in that share, and mount that share in the Jellyfin LXC.

[akcapak]

Why not 1 + 2?  In terms of codec support and transcoding performance, they are pretty similar.  And using an actual PC means you aren't locked into how Ugreen does things with their NAS OS.  Just use the NAS as a NAS.  Create a network share on the NAS, put all your media in that share, and mount that share in the Jellyfin LXC.

This is actually the most expensive option... and i really do not know if it is worth it at all. 
By option 3 don't you think that it can handle all VMs on one device?
All other VMs/LXCs are not very consuming processes..
HomeAssistant-Zigbee2MQTT-Adguard-Frigate (has its own Coral USB Stick)

In worst case i can also add one more 8g RAM to NAS. (Btw. i wanted also to run Proxmox on NAS instead of own Ugreen OS)

Or do you see another advantage of running every other VMs separately?

[TheDreadPirate]

Oh. I didn't notice that you hadn't bought the Ugreen NAS already. My bad.

Based on what I am reading, Ugreen gives you the option to install your own operating system instead of using UGOS?

If that is the case, option 3 would be pretty ideal.