[research] Blockchain Analysis of the Bitcoin Market

In this paper, we provide detailed analyses of the Bitcoin network and its main participants

It has some quite interesting findings when it comes to usage of Bitcoin:

We first document that 90% of transaction volume on the Bitcoin blockchain is not tied to economically meaningful activities

Starting from 2015, 75% of real bitcoin volume has been linked to exchanges or exchange-like entities such as on-line wallets, OTC desks, and large institutional traders.

For example, illegal transactions, scams and gambling together make up less than 3% of volume.

Exchanges not only generate the most volume, but they are also the most connected nodes in the Bitcoin network.


Bitcoin mining capacity is highly concentrated and has been
for the last five years. The top 10% of miners control 90% and just 0.1% (about 50
miners) control close to 50% of mining capacity. Furthermore, this concentration of
mining capacity is counter cyclical and varies with the Bitcoin price. It decreases
following sharp increases in the Bitcoin price and increases in periods when the price
drops or. Thus, the risk of a 51% attack increases in times when the Bitcoin price
drops precipitously or following the halving events.