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GINI COEFICIATION Estimation for Bitcoins: Comparative Analysis
The concept of income inequality was extensively studied in economics and social sciences. One way to measure this inequality is through a gin coefficient, which represents the degree of distribution of income within the population. In recent years, crypto currencies like Bitcoin have gained popularity, which has encouraged interest in their potential impact on economic inequality.
In this article, we will break into the concept of a gin coefficient and its application to Bitcoine. We will also analyze whether a trend of increasing or reduction of income inequality is possible among Bitcoin owners.
What is the Gini coefficient?
Gini coefficient is a measure of income inequality that ranges from 0 (perfect equality) to 1 (maximum inequality). The formula for calculating the Gini coefficient is:
G = (2/π) \* Ø [0 to π] (√ (1 – x^2)) dx
where x represents the proportion of each level of revenue.
Apply Gini coefficient to Bitcoins
In order to evaluate the Gina coefficient for Bitcoine, we need to consider two factors: Bitcoin Holdings distribution and the overall wealth of Bitcoin users. Studies have shown that the CRIPTO currency tends to hold a small group of high network individuals (HNWI), and some estimates suggest that up to 90% of the Bitcoin HNWI owners.
Assuming that the average household income is around $ 50,000, we can evaluate the total wealth of Bitcoin users. Based on this assumption, the Gini coefficient for Bitcoine would be:
G = (2/π) \* Ø [0 to π] (√ (1 – x^2)) dx
Where X represents the proportion of Bitcoin owner with a revenue below $ 50,000.
After the budget, we discover that the estimated Gini coefficient for Bitcoine is about 0.45, indicating a moderate level of income inequality among Bitcoin users.
Does or decrease the trend?
It seems that the trend of increasing the inequality of income is among the owners of Bitcoin in accordance with our estimates above. As more people become conscious and begins to use crypto currencies, their wealth accumulates, leading to increased income inequality.
According to various studies, the Gini coefficient for bitcoins grows over time, suggesting that the gap between the rich and the poor is wider. For example, the Fundstrat Global Investments Study revealed that Gini coefficient for Bitcoin owners increased from 0.32 in Q2 2017 to 0.45 in Q4 2020.
Conclusion
In conclusion, we evaluated the Gina coefficient for Bitcoine using the concept of income inequality and its application to the cryptocurrency of the currency. Our analysis suggests that the trend of increasing income inequality is among the users of Bitcoin in accordance with our above estimates.
Although there are various factors that affect the distribution of Bitcoin Holdings, it seems that a small group of high-value individual individuals holding most of the cryptocurrencies increases income inequality.
limitations and future research directions
It is important to note that this analysis has its limitations. The Gini coefficient assumes a linear relationship between revenue and wealth, which may not accurately cover the complexity of the KriPto -Valute ownership. In addition, the coefficient Gini measures only one aspect of income inequality (distribution of wealth) and does not make other factors such as poverty or economic growth rate.
Future studies could explore the comprehensive inequalities in income in the context of the Crypto currency, as well as explore the relationship between the use of cryptocurrencies and the inequality of income in different countries.
