Findings from analytics firm, Bitnodes, show that Germany is operating more nodes for flagship cryptocurrency, Bitcoin than the US in a surprising outcome. According to Bitnodes, there are exactly 10,780 listening or fully validating nodes. Listening nodes differ from other nodes on the network because they fully participate in distributing transactions across the network for miners.
Miners can disseminate these transactions for validation using full nodes otherwise known as listening nodes. These nodes are easily visible because they are public. Hence, why Bitnodes could locate them for its research. As per Bitnodes findings, about 1883 of Bitcoin’s listening nodes are situated in the European country, Germany placing it as the second on the pecking order.
US Trail Behind Germany with 1883 Nodes
Out of the 10,780 listening nodes, the US is in third place with 1821 nodes while Germany’s European counterpart, France ranks third with just 549 nodes. Asian giant China is trailing behind in the 10th position with 152 nodes. Interestingly, the number one spot on Bitnodes’ list is blank despite the nodes being public and visible. However, it carries the highest number of fully validating nodes- 3313 accounting for 30.37% out of the total.
As of 2019, Germany was closing in on the US concerning the number of bitcoin nodes with a total of 1900 nodes behind America’s 2400 nodes. At the time, it was still a significant number because Germany’s population was four times less than that of the US and its economy five times lower than the latter’s. Currently, Germany is outperforming the US with a great number. The reduction in US’ Bitcoin nodes has contributed to Germany’s domination.
Again, the exodus of American traders to the European giant owing to its privacy laws has contributed immensely to Germany’s Bitcoin listening nodes. Germany also boasts the largest group of hackers in Europe with over 7000 recognized members.
Hostile Regulations Contribute to US’ Nodes Shortfall
Another key factor is the regulatory atmosphere in the US. There have been incessant calls for regulations that will encompass the entire crypto industry. The incoming Infrastructure Bill has been touted to play this role given its wider provisions. According to reports, a major fallout of the enactment of such a bill will be the migration of crypto traders and businesses from the country. This could be for the country’s economy. The tax provisions in the Infrastructure are a big turn-off for crypto investors, experts noted.
In contrast, the atmosphere in Europe as regards crypto regulations is somewhat friendly and receptive. In light of the Bitcoin nodes, Germans are at liberty to reveal their locations given that there are no sanctions for doing so. All these factors came together to put Germany in a leading position ahead of the US.