Temporal and Geographical Analysis of Real Economic Activities in the Bitcoin Blockchain

• URL: http://arxiv.org/abs/2307.08616v1
• Date: Mon, 17 Jul 2023 16:30:56 GMT
• Title: Temporal and Geographical Analysis of Real Economic Activities in the Bitcoin Blockchain
• Authors: Rafael Ramos Tubino, Remy Cazabet, Natkamon Tovanich, and Celine Robardet
• Abstract summary: We study the real economic activity in the Bitcoin blockchain that involves transactions from/to retail users rather than between organizations. We show that most real transactions involve Frequent Receivers, representing a small fraction of the total value exchanged according to the blockchain. We also conduct a weekly pattern analysis of activity, providing insights into the geographical location of Bitcoin users.
• Score: 0.7874708385247353
• License: http://arxiv.org/licenses/nonexclusive-distrib/1.0/
• Abstract: We study the real economic activity in the Bitcoin blockchain that involves transactions from/to retail users rather than between organizations such as marketplaces, exchanges, or other services. We first introduce a heuristic method to classify Bitcoin players into three main categories: Frequent Receivers (FR), Neighbors of FR, and Others. We show that most real transactions involve Frequent Receivers, representing a small fraction of the total value exchanged according to the blockchain, but a significant fraction of all payments, raising concerns about the centralization of the Bitcoin ecosystem. We also conduct a weekly pattern analysis of activity, providing insights into the geographical location of Bitcoin users and allowing us to quantify the bias of a well-known dataset for actor identification.

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