The number of bitcoin nodes fell to a 3-year low, despite rising prices

The number of computers running the Bitcoin blockchain has fallen to its lowest level in almost three years.according to data calculated by one of the well-known Bitcoin developers.

Total Bitcoin Nodes on Mondayfell below 47,000, which has not been observed since 2017, based on estimates determined by the respected Bitcoin developer, Luke Dashzhrom. His numbers indicate a steady decline in the number of operating nodes from a peak of 200,000 in January 2018.

Reducing the total number of nodes means thatfewer people are involved in verifying new transactions and storing copies of the overall network transaction history. New lows are being calculated during recent jumps in prices and mining power.

Counting the number of bitcoin nodes usuallybased on estimates, not on specific data, and opinions on the best methodology for obtaining these estimates differ. According to the creator, the Dashjr assessment relies on a tedious and undisclosed patented methodology that could compromise the reliability of data if it is published.

Another famous count of bitcoin nodes,provided by Bitnodes for free, demonstrates new multi-year lows for the number of Bitcoin IPv4 nodes in mid-March. This helps validate Dashjr data. However, since November, Bitnodes data has shown a leap in nodes using onion services, which complicates the search for a node operator.

Why are nodes disconnected?

Curious that the last cycles of bull bitcoinspreceded by significant surges in the number of new bitcoin nodes that appeared on the network, according to Dashzhr estimates. But since April 2019, the estimate of the total number of nodes has been steadily declining, despite periods of relatively bullish price changes. Poor price behavior or recent market collapses may have caused some investors and node operators to simply lose interest and close their nodes.

After the fall in prices, many Bitcoin users“They lose interest and stop opening their wallets or managing their nodes,” said Jameson Lopp, CTO and co-founder of Casa, a Bitcoin protection company. Lopp considers bitcoin nodes that continue to work, despite market behavior, to be "nodes of last resort."

Many people can also turn off theirBitcoin nodes because running software is too complicated for them. According to Dashjr, “the launch of the Bitcoin node continues to become more and more difficult with block sizes exceeding the pace of technological improvement.”

How many nodes are enough?

Full bitcoin nodes are not needed for new bitcoins. Instead, they store separate copies of the block chain to protect the accuracy of the universal register and allow users to verify transactions made on the network.

"Ultimately, the original number does not havevalues. Two things are important: are users checking transactions using bitcoin nodes and are there enough nodes to serve downloads along the chain for new nodes, ”said Matt Corallo, a regular open source Bitcoin developer at Square.

But the definition of “enough” is “very difficult,” he said.

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