Clustering in Bitcoin balance

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.

Automated summary

This study investigates the clustering phenomenon in Bitcoin wallet balances by examining the Bitcoin rich list. Significant clustering is found in both the integer and fractional parts of the balances, particularly at 00. Using probit models, the study reveals that wallet age, number of transactions, and balance significantly impact clustering, with balance being the most influential factor. The findings suggest that economic and behavioral factors may contribute to the observed preference clustering among Bitcoin wallet holders. This study offers valuable insights into the behavior of Bitcoin users and lays the foundation for further research in this area.