<p>The owner of the Bitcoinica site has released some <a href="https://bitcointalk.org/index.php?topic=51011.msg608239#msg608239" rel="noreferrer">data</a> from his site which may reflect the wider bitcoin economy. He gives a value for the Gini coefficient of:</p>
<blockquote>
<p>Gini Coefficient = 0.87709</p>
</blockquote>
<p>The <a href="http://bitcoinreport.blogspot.com/" rel="noreferrer">Bitcoin Report</a> site also releases a regular report on the number of bitcoins in the top 100 wallets. Although one person can own multiple wallets or a wallet of a exchange (e.g. MtGox) may contain coins with multiple owners so it is impossible to know for certain the real wealth distribution but it may have some correlation.</p>
<p>The <a href="http://www.thebitcointrader.com/2011/10/is-it-time-to-occupy-bitcoin-street.html" rel="noreferrer">Bitcoin Trader</a> blog used the Bitcoin report data on the top 100 wallets and compared the data from May 1st and Oct. 29th 2011.</p>
<p><img src="https://i.sstatic.net/eKIE8.png" alt="Top 100 wallets distribution" />.</p>
<p>From the Bitcoin Trader:</p>
<blockquote>
<p>The distribution of coins among the top 100 has evened out, as can be seen in the chart.</p>
<p>Even though 1,310,000 Bitcoins have been mined since May 1st, the top 100 have still managed to increase their relative wealth, and now hold 29.8% of all the Bitcoins ever created!</p>
</blockquote>
<p>While  certainly not perfect these type of statistics may be give some indication of the trends in the wealth distribution in the bitcoin economy.</p>

CC BY-SA 3.0
2014-12-12T17:27:20.067Z
Yes, BitCoin's high gini coefficient is one reason many people prefer DogeCoin :  http://www.businessinsider.com/bitcoin-inequality-2014-1
Jeff Burdges
CC BY-SA 3.0
2012-01-10T00:32:16.923Z
The plateau at 50,000BTC looks suspicious - I wonder if a big holder has multiple addresses with 50,000BTC in each?
Highly Irregular
CC BY-SA 3.0
2012-02-08T09:48:42.423Z
@HighlyIrregular a big holder **had** multiple addresses with 50,000 BTC in each.  It was MtGox, and they combined 10 of them into a single 500,000 BTC address on 16th Nov 2011.  See the transaction blockexplorer:  http://blockexplorer.com/t/2aXLZLjoP6
Chris Moore
CC BY-SA 3.0
2011-11-06T14:13:27.607Z
2011-11-06T14:13:27.607Z
2020-06-16T11:10:03.350Z
kirian
<p>Once you have the relevent statistics this is easy. Collecting those statistics is hard though, due to bitcoins level of anonymity. You would probably need to do a survey.</p>

CC BY-SA 3.0
2011-09-03T19:41:43.283Z
I think this summarizes it entirely. There is no real way to track statistics of bitcoin users.
Evil Spork
CC BY-SA 3.0
2011-09-05T00:11:23.783Z
you can look at the Gini coefficient between wallets; that should be relatively straightforward? Technically a single user can have many wallets, but I am sure this is atleast a good starting approximation, no?
Artem Kaznatcheev
CC BY-SA 3.0
2011-09-11T07:09:14.263Z
a question that peruses this approach is here: http://bitcoin.stackexchange.com/q/810/46
Artem Kaznatcheev
CC BY-SA 3.0
2011-11-07T05:33:04.927Z
@ArtemKaznatcheev there is no way to identify wallets from the blockchain, only addresses. A single wallet can handle anywhere from a few dozen to hundreds of active addresses and those addresses can't be linked together.
DeathAndTaxes
CC BY-SA 3.0
2011-09-03T09:57:15.150Z
2011-09-03T09:57:15.150Z
Peter
<p>It is possible, you will first need to collect statistics on bitcoin usage.</p>

CC BY-SA 3.0
2011-08-31T01:33:03.943Z
2011-08-31T01:33:03.943Z
Buckhead_Comp_Ser_Co
<p>The <a href="http://en.wikipedia.org/wiki/Gini_coefficient">Gini coefficient</a> is a measure of the inequality of something's distribution, where a value of 0 represents total equality and a value of 1 maximal inequality.</p>

<p>Is it possible to perform this type of estimate on how bitcoins are distributed throughout the userbase? And/or is it possible to tell how this distribution is changing over time? </p>

CC BY-SA 3.0
2013-02-18T20:42:41.470Z
@dave-perry perhaps you could explain why. your comment is pretty flat without further explanation, which im sure the community would be happy to hear.
gesell
CC BY-SA 3.0
2011-08-30T22:35:38.140Z
The Gini Coefficient doesn't seem like it would be very useful for such a small economy. Ask again when bitcoin has a significantly larger network and you might get a useful answer.
David Perry
CC BY-SA 3.0
2011-08-31T00:58:27.540Z
There is no real way to know. People might spread their holdings over several addresses, and one address can be a cold Mt. Gox store for a huge portion of the economy, and not owned by any single individual.
ripper234
CC BY-SA 3.0
2011-08-31T01:00:44.930Z
In its current form this question is not terribly constructive, since it is poorly phrased and has no real way of being answered.  I would encourage a rephrasing such as "Is it possible to estimate the Gini coefficient for Bitcoins?"  The answer to this would be no, but it would be constructive and helpful if answered well.
eMansipater
CC BY-SA 3.0
2011-08-31T01:29:17.347Z
I re-phrased the question based on the feedback above.
kirian
CC BY-SA 3.0
2011-08-31T04:01:45.530Z
The fact that some folks don't see how to do it now is no reason to close the question.  I suggest it be reopened.
nealmcb
CC BY-SA 3.0
2011-09-02T00:54:49.387Z
I also think that the question is perfectly valid, and I would be very curious to read a good no answer, since I would naively expect it to be possible to at least approximate.
Artem Kaznatcheev
<economic-theory>
Is it possible to estimate the Gini coefficient for Bitcoins and if the trend is increasing or decreasing?
kirian
# Is it possible to estimate the Gini coefficient for Bitcoins and if the trend is increasing or decreasing?

(Asked by: username_0 on 2011-08-30)

The [Gini coefficient](http://en.wikipedia.org/wiki/Gini_coefficient) is a measure of the inequality of something's distribution, where a value of 0 represents total equality and a value of 1 maximal inequality.

Is it possible to perform this type of estimate on how bitcoins are distributed throughout the userbase? And/or is it possible to tell how this distribution is changing over time?

**Tags:** economic-theory

> **Comments:**
> **username_2**: The Gini Coefficient doesn't seem like it would be very useful for such a small economy. Ask again when bitcoin has a significantly larger network and you might get a useful answer.  
> **username_3**: There is no real way to know. People might spread their holdings over several addresses, and one address can be a cold Mt. Gox store for a huge portion of the economy, and not owned by any single individual.  
> **username_4**: In its current form this question is not terribly constructive, since it is poorly phrased and has no real way of being answered.  I would encourage a rephrasing such as "Is it possible to estimate the Gini coefficient for Bitcoins?"  The answer to this would be no, but it would be constructive and helpful if answered well.  
> **username_0**: I re-phrased the question based on the feedback above.  
> **username_5**: The fact that some folks don't see how to do it now is no reason to close the question.  I suggest it be reopened.  
> **username_6**: I also think that the question is perfectly valid, and I would be very curious to read a good no answer, since I would naively expect it to be possible to at least approximate.  
> **username_1**: @dave-username_2 perhaps you could explain why. your comment is pretty flat without further explanation, which im sure the community would be happy to hear.  

---

## 3 answers

### Answer by username_0 on 2011-11-06. Score: 9

The owner of the Bitcoinica site has released some [data](https://bitcointalk.org/index.php?topic=51011.msg608239#msg608239) from his site which may reflect the wider bitcoin economy. He gives a value for the Gini coefficient of:

> Gini Coefficient = 0.87709

The [Bitcoin Report](http://bitcoinreport.blogspot.com/) site also releases a regular report on the number of bitcoins in the top 100 wallets. Although one person can own multiple wallets or a wallet of a exchange (e.g. MtGox) may contain coins with multiple owners so it is impossible to know for certain the real wealth distribution but it may have some correlation.

The [Bitcoin Trader](http://www.thebitcointrader.com/2011/10/is-it-time-to-occupy-bitcoin-street.html) blog used the Bitcoin report data on the top 100 wallets and compared the data from May 1st and Oct. 29th 2011.

![Top 100 wallets distribution](https://i.sstatic.net/eKIE8.png).

From the Bitcoin Trader:

> The distribution of coins among the top 100 has evened out, as can be seen in the chart.
>
> Even though 1,310,000 Bitcoins have been mined since May 1st, the top 100 have still managed to increase their relative wealth, and now hold 29.8% of all the Bitcoins ever created!

While certainly not perfect these type of statistics may be give some indication of the trends in the wealth distribution in the bitcoin economy.

> **Comments:**
> **username_8**: The plateau at 50,000BTC looks suspicious - I wonder if a big holder has multiple addresses with 50,000BTC in each?  
> **username_9**: @username_8 a big holder **had** multiple addresses with 50,000 BTC in each.  It was MtGox, and they combined 10 of them into a single 500,000 BTC address on 16th Nov 2011.  See the transaction blockexplorer:  http://blockexplorer.com/t/2aXLZLjoP6  
> **username_7**: Yes, BitCoin's high gini coefficient is one reason many people prefer DogeCoin :  http://www.businessinsider.com/bitcoin-inequality-2014-1  

---

### Answer by username_10 on 2011-09-03. Score: 3

Once you have the relevent statistics this is easy. Collecting those statistics is hard though, due to bitcoins level of anonymity. You would probably need to do a survey.

> **Comments:**
> **username_11**: I think this summarizes it entirely. There is no real way to track statistics of bitcoin users.  
> **username_6**: you can look at the Gini coefficient between wallets; that should be relatively straightforward? Technically a single user can have many wallets, but I am sure this is atleast a good starting approximation, no?  
> **username_6**: a question that peruses this approach is here: http://bitcoin.stackexchange.com/q/810/46  
> **username_12**: @username_6 there is no way to identify wallets from the blockchain, only addresses. A single wallet can handle anywhere from a few dozen to hundreds of active addresses and those addresses can't be linked together.  

---

### Answer by username_13 on 2011-08-31. Score: 0

It is possible, you will first need to collect statistics on bitcoin usage.


---

