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Clustering in Bitcoin balance

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  • Telli, Şahin
  • Zhao, Xufeng

Abstract

This study investigates clustering in Bitcoin wallet balances by examining the Bitcoin rich list. We discover significant clustering in both integer and fractional parts of balances, particularly at 00. Using probit models, we find that wallet age, number of transactions, and balance significantly impact clustering, with balance being the most influential factor. Our findings suggest that economic and behavioral factors may drive Bitcoin wallet holders’ preferences, contributing to the observed clustering. This study offers valuable insights into the behavior of Bitcoin users and sets the stage for further investigation in this area.

Suggested Citation

  • Telli, Şahin & Zhao, Xufeng, 2023. "Clustering in Bitcoin balance," Finance Research Letters, Elsevier, vol. 55(PA).
    • Handle: RePEc:eee:finlet:v:55:y:2023:i:pa:s1544612323002763
    DOI: 10.1016/j.frl.2023.103904
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    References listed on IDEAS

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