Exploring the Bitcoin Network

This explorative paper focuses on descriptive statistics and network analysis of the Bitcoin transaction graph based on recent data using graph mining algorithms. The analysis is carried out on different aggregations and subgraphs of the network. One important result concerns the relationship of network usage and exchange rate, where a strong connection could be confirmed. Moreover, there are indicators that the Bitcoin system is a “small world” network and follows a scale-free degree distribution. Furthermore, an example of how important network entities could be deanonymized is presented. Our study can serve as a starting point in investigating anonymity and economic relationships in Bitcoin on a new structural level.