We recommend a dedicated server for Minecraft, due to the hardware requirements for the Minecraft game server. A VPS, especially a low level VPS, is not suitable for running Minecraft. Minecraft has no published hardware requirements for the server. However, it is very intensive in three respects:
Memory usage. Minecraft is Java based, and uses a ton of memory. Typical recommendations are a minimum of 4 GB for even a handful of players, and even then, that may not be enough for it to be a smooth experience. Due to memory use alone, we don't recommend anything less than a Standard Dedicated Server.
Disk I/O. Minecraft is I/O intensive due to the way map generation is handled by the software. Since a VPS has a shared disk environment, this makes it unsuitable for a VPS.
Single Threaded. The minecraft servers are singlethreaded, so even upgrading to a higher level on a VPS server won't help much, as the largest singlethread VPS we offer is still under 2 GHZ. A dedicated server would be able to handle the load better.