Blockchain Analysis of the Bitcoin Market

MIT Sloan Reunion 2022
Saturday, May 28
Featuring: Antoinette Schoar, Stewart C. Myers-Horn Family Professor of Finance
Cryptocurrencies have had remarkable growth in valuation and attention over the last decade. The distinguishing feature of cryptocurrencies is the promise of a decentralized system of payments and storage of value outside the traditional nexus of government scrutiny. While more than 4,500 cryptos are now in circulation, Bitcoin is still by far the largest and most well-known. Despite its dramatic rise we still know little about the participants in the Bitcoin ecosystem and their utilization of Bitcoin. What is the structure of the network? Who are the largest holders of BTC balances? Who is using BTC for transactions or trading? The talk focuses on a number of new stylized facts about the ownership, concentration of balances and volume across the major groups of participants on the BTC platform. In particular the behavior of miners, exchanges, illegal uses and scams, and large “holders”.