Consider how many devices will use it at the same time.
Only you? A pi is fine.
A few friends too? An old computer with a rough equivilent of i5-2300 with integrated graphics should do the trick. 4GB Ram will do fine.
A small group that'll use it constantly? Plug in a GPU that supports hardware encoding, (Some low-end cards like GT 1030 doesnt support this feature, check this properly.) , upgrade RAM a notch more, like 8GB.
You can scale it higher for more people via logic; you'll also know how much storage you'll need; but it'll be a lot if you want to satisfy a huge group of people.