ARK Invest and Glassnode Introduce Cointime Economics Metric for Analyzing Bitcoin Supply and Demand
ARK Invest and Glassnode have collaborated to unveil a new metric called “Cointime Economics” that aims to provide a more accurate analysis of bitcoin supply and demand dynamics. This metric takes into account the last time each bitcoin was transacted to determine its economic weight within the network. The report emphasizes that the importance of a bitcoin should vary based on its movement history, with unmoved bitcoins for longer periods considered more significant. The new framework aims to address potential inaccuracies in current industry-standard frameworks such as adjusted supply and free-float supply. It introduces a unit of measurement called a Coinblock to assess the number of blocks produced during the time a bitcoin remains unmoved, providing a more precise market-value-to-realized-value ratio and inflation rate measurement.
Key Points:
– “Cointime Economics” offers a more accurate picture of the economic weight of each bitcoin based on its transaction history.
– Unmoved bitcoins for longer periods are considered more important within the network.
– The new framework aims to mitigate potential inaccuracies caused by current industry-standard frameworks.
– It introduces the Coinblock unit of measurement to assess bitcoin supply and inflation rate.
– The framework provides a more precise market-value-to-realized-value ratio and time-weighted cost basis measurement.
Hot Take:
ARK Invest and Glassnode’s introduction of the Cointime Economics metric demonstrates the continuous effort to enhance the analysis of bitcoin supply and demand dynamics. By considering the last time each bitcoin was transacted, this new framework provides a more accurate understanding of the economic weight of each bitcoin within the network. This approach has the potential to improve decision-making and mitigate potential inaccuracies caused by existing frameworks. The Coinblock unit of measurement further enhances the measurement of bitcoin supply, inflation rate, and market-value-to-realized-value ratio. Overall, this metric contributes to a more comprehensive analysis of the crypto market’s key digital asset.
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