Post
Topic
Board Service Announcements (Altcoins)
Re: Just-Dice.com : Invest in 1% House Edge Dice Game
by
organofcorti
on 31/10/2013, 12:50:05 UTC

Thanks for the charts.

I don't think it's surprising that there are a small number of large investors, and a large number of small ones.  That's how most things tend to be.  Look at a plot of bank balances, bitcoin address balances, incomes, or pretty much anything else wealth related and you'll see the same pattern over and over.

This is true. It's called Zipf's Law:

https://en.wikipedia.org/wiki/Zipf's_law

Here's the Log(rank) vs Log(Invested amount) chart using JD invested data. It's not exactly like similar plots of, say, bank balances, income, city populations, etc., because it's not a straight line. Perhaps this has something to do with JD (risk seeking or risk averse behavior at different levels of BTC ownership? Use of multiple accounts?), or perhaps it just reflects the underlying distribution of Bitcoin ownership (which we do not know precisely).





It turns out that investor amounts are not Pareto distributed (the continuous analog of Zipf's law), but rather [edit] can be modelled as [/edit] a mixture of two log normally distributed random variables. I've posted the details here so as not to junk up this thread. I'll just leave one chart to give you an idea.