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The tail of the wealth distribution of Bitcoin gamblers follows a pairwise power-law distribution. Removing effects due to inequality in the number of bets. In the above sections, we have analyzed the distributions of several quantities at the population level. However, there is a huge inequality of the number of placed bets among gamblers. We therefore wonder whether those distributions we obtain result from the inequality of number of bets among individuals. To remove the effects of this inequality, we randomly sample in each dataset the same number of bets from heavy gamblers. We re-analyze the wager distribution and odds distribution with the sample data to see if we obtain the same distribution as before. In each dataset we randomly sample 500 bets from each of those gamblers who placed at least 500 bets above b min given in Table 1. Some datasets are excluded here as either they do not have enough data or we cannot identify individual gamblers. When re-analyzing the odds distribution, to ensure we have enough data, we respectively sample 100 and 2000 bets from each of those gamblers in games (C) and (F) who have at least 100 and 2000 valid player-selected odds above m min . According to the results in Fig. 5, after removing the inequality the wager distributions can still be approximated by log-normal distributions, but some deviation can be observed. Similarly, the odds distributions again follow truncated shifted power-law distributions after removing the inequality. These results demonstrate that the shape of the distributions we obtained in the above sections is not a result of the inequality of the number of bets. Figure 5, play online gambling games. The wagers obtained from random sampling of top gamblers’ bets still present log-normal distributions, although there are some observable deviations. Now our question becomes whether the conclusion regarding the distribution at the population level can be extended to the individual level. Here due to the limitation of data, we will only discuss the wager distribution. Analyzing the individual distribution of top gamblers, we find that although heavy-tailed properties can be widely observed at the individual level, only a small proportion of top gamblers presents log-normal distributed wagers. Other distributions encountered include log-normal distributions, power-law distributions, power-law distributions with exponential cutoff, pair-wise power-law distributions, irregular heavy-tailed distributions, as well as distributions that only have a few values. The diversity of the wager distributions at the individual level suggests a diversity of individual betting strategies. Also, it indicates that a gambler may not stick to only one betting strategy. It follows that the log-normal wager distribution observed at the population level is very likely an aggregate result. Diffusive process. For an individual player’s gambling sequence we define “time” t as the number of bets one player has placed so far, and define as net income the sum of the payoffs of those bets. In all the games we analyze, there are only two possible outcomes: a win or a loss. The player’s net income will change each time they place a bet in a round, with the step length to be the payoff from that bet. We can treat the change of one player’s net income as a random walk in a one-dimensional space (see Fig. 1 in ref. 8 for an example of such a trajectory). The time t will increase by 1 when the player places a new bet, therefore the process is a discrete-time random walk. Now, let us focus on the analysis of the diffusive process of the gamblers’ net incomes, starting with the analysis of the change of the mean net income with the number of rounds played (time), \(\langle \Delta w(t)\rangle =\langle w(t)-_\rangle =\langle _^\,_ (i)\rangle \) , where w 0 is the player’s initial wealth, w ( t ) is the player’s wealth after attending t rounds, and \(_ (i)\) is the payoff from the i th round the player attended. \(\langle \cdot \rangle \) represents an ensemble average over a population of players placing bets. In the rest of this paper, \(\langle \cdot \rangle \) will always be used for representing an ensemble average. In Fig. 6 we show the change of \(\langle \Delta w(t)\rangle \) over time. In most of the datasets, players’ mean net income decreases over time, which suggests that in general players will lose more as they gamble more. At the same time, in some datasets such as Ethcrash (D) and Coinroll (F), large fluctuations can be observed. Figure 6.
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