Blockchain Analysis of the Bitcoin Market

61 Pages Posted: 14 Oct 2021 Last revised: 2 May 2022

See all articles by Igor Makarov

Igor Makarov

London School of Economics & Political Science (LSE)

Antoinette Schoar

Massachusetts Institute of Technology (MIT) - Sloan School of Management; National Bureau of Economic Research (NBER)

Date Written: October 13, 2021

Abstract

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

Makarov, Igor and Schoar, Antoinette, Blockchain Analysis of the Bitcoin Market (October 13, 2021). Available at SSRN: https://ssrn.com/abstract=3942181 or http://dx.doi.org/10.2139/ssrn.3942181

Igor Makarov (Contact Author)

London School of Economics & Political Science (LSE) ( email )

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Antoinette Schoar

Massachusetts Institute of Technology (MIT) - Sloan School of Management ( email )

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Cambridge, MA 02142
United States
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National Bureau of Economic Research (NBER) ( email )

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