Sunday, May 19, 2024

Ensuing struggle in China between Bitcoin nodes and OTC desks

China was the hub of crypto mining and had been a great place for crypto enthusiasts. But all this changed when the government outright banned mining of the cryptocurrencies in the country. This move came as a surprise to all but is in character with the Chinese government’s policy of cracking down on unregulated activities.

Since the ban, the crackdown has intensified, but there are still 135 Bitcoin nodes operational in the country. It can be said that the Chinese government is not a fan of anything that they cannot regulate. But there is still hope for the cryptocurrency nodes there.

OTC trading is still not prohibited in the mainland, which means that it is still a viable way for the nodes to operate. These 135 Bitcoin nodes make up 1.2% of the global 11,262 nodes.

Nodes are the software that is capable of running the protocol and contain the full ledger and transaction data. These are distributed all across the globe, and this is how they are also decentralized. With the data not in one place, it is far tougher for organizations to access it and governments to control it.

This means that there is a chance that OTC trading might be curtailed or outright banned by the Government of China. OTC trading is opaque in its nature and also P2P (peer to peer). It is a great way to trade without government intervention.

Although the move has come suddenly, many people are in splits whether to praise the government or not

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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