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Bitcoin [BTC]: Number of reachable nodes almost unchanged from a year ago, reveals analysis

Akash Anand



Bitcoin [BTC]: Number of reachable nodes remain almost unchanged even after a year, shows analysis
Source: Pixabay

The concept of decentralization in the Bitcoin [BTC] ecosystem has been a thoroughly discussed topic and a majority still believe that it is the foundation on which the cryptocurrency can be propagated. Bitcoin transactions are conducted via Bitcoin nodes and recent analysis suggests that while BTC’s price and market cap may have benefited from the recent bull run, the number of reachable BTC nodes remains unchanged from a year ago.

Gabor Gurbacs, Digital Asset Strategist at VanEck, pointed this out and tweeted,

“There are 9,623 reachable #Bitcoin nodes, 25% in the U.S., 20% in Germany, 6.5% in France, 5.3% in the Netherlands, 3.9% in China, 3.2% in the UK, 2.6% in Russia. The number of reachable nodes are roughly the same since a year ago. Run your own node! Keep Bitcoin decentralized!”

A year back, the number of Bitcoin nodes was up by 3.54 percent, clocking in an average of 9934 nodes. The analysis further showed that Asian countries were in the minority when it came to the top ten countries with reachable Bitcoin nodes, with Singapore being the only other Asian country along with China.

Another report had spoken about Germany overtaking the United States in terms of the number of nodes present. However, that title was regained by the US shortly after. Some Bitcoin supporters were aghast about the slow growth of nodes, with Conrad Hayek, a cryptocurrency enthusiast, stating,

“Why does nobody in the BTC community give a f*ck that the entire system is validated by a very very small number of mining pools?  Are people genuinely okay with that?”

China’s growing dominance in the Bitcoin space was made clear after recent analysis suggested that it had overtaken Canada to settle at the 5th position on the node chart. The Red Dragon’s looming presence was also cited in Adamant Capital’s latest report which said,

“… it appears we underestimated one factor: capital flight from China. On May 5th, the Chinese Yuan started weakening against the US dollar, and 13 days later traded 2.5% lower — a huge move in Forex terms. Remarkably, that was also the week that bitcoin broke above the resistance of $6,500. In short, there’s a significant chance that in fact it was Chinese investors who pushed bitcoin in bull market territory this year.”

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ErisX goes all hands on deck to launch a Bitcoin Futures market




ErisX goes all-hands on deck to launch a Bitcoin Futures market
Source: Unsplash

ErisX’s CSO, Matt Trudeau, detailed the company’s four important plans for the future, which includes launching a spot market, to secure a Bit License, DCO, and to launch a futures market.

ErisX currently has a DCM contract, which is a Derivative Contract Market that allows ErisX to run a CFTC-regulated futures exchange. However, ErisX aims to get a DCO [Derivatives Organization], which will effectively allow it to run a CFTC-regulated clearinghouse. A clearinghouse would mean that ErisX can take control of the custody of the assets and clear and settled trades.

The CSO explained the benefit of this, stating,

“There is some efficiency for firms like producers [like mining companies]; if they need to hedge their inventory or need liquidity on a spot market, they could do that conveniently on a single platform. “

Trudeau added that from the “post-trade standpoint” and “the collateral management standpoint,” ErisX would have cash, crypto, and the futures, all stored in their clearinghouse. This would boost efficiency since it would be available for all customers under a single platform. The CSO added,

“… so there is some efficiency in terms of managing collateral, if you don’t have assets on  multiple platforms, it can all be in our clearinghouse.”

Apart from the aforementioned plans, Trudeau added that the crypto-industry needs to mature more and that ErisX plans to make a significant contribution to that. He added,

“The market is professionalizing and we think that in terms of what institutions are expecting from a trading/custody experience, we will bring some of the solutions to the market and that’s really the foundational pieces that they are looking in order to build their businesses on top of us.”

Apart from ErisX, LedgerX has also received a go-sign from the CFTC to settle Bitcoin Futures in Bitcoins. Other exchanges include Intercontinental Exchange’s Bakkt and Seed CX.

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