Blockchain Analysis of the Bitcoin Market
61 Pages Posted: 14 Oct 2021 Last revised: 2 May 2022
Date Written: October 13, 2021
In this paper, we provide a detailed analysis of the Bitcoin network. We build a novel Bitcoin database and develop a methodology for identifying information about the main market participants. We conduct three major pieces of analysis that focus on the core functions of the new architecture: We document the transaction volumes and network structure of the main participants, the concentration and regional composition of miners which ensure the integrity of the blockchain ledger, and finally, the ownership concentration of the largest Bitcoin holders. We show that the Bitcoin eco-system is still dominated by large and concentrated players.
Keywords: Bitcoin, Cryptocurrencies, payment system
JEL Classification: G12, G15, F38
Suggested Citation: Suggested Citation