Ark Invest and Glassnode Develop New Economic Metric for Bitcoin Network
Ark Invest and Glassnode have collaborated to create a novel economic metric for the Bitcoin network. This metric, called Cointime Economics, introduces a suite of analysis tools and 30 new metrics that aim to improve valuation and pricing models for Bitcoin.
Key Points:
– Cointime Economics establishes a link between the fundamental unit of Bitcoin time, the ‘coinblock,’ and the dimension of coin supply.
– The framework analyzes coinblocks created, destroyed, and stored to measure the total cointime in the network, turnover, and inactive coins.
– The new metric enhances valuation models like MVRV and introduces an Active-Value-to-Investor-Value ratio to capture real economic activity.
– Cointime also improves the measurement of Bitcoin’s inflation rate, providing a more accurate assessment of supply and demand balance.
– The white paper, authored by David Puell from Ark Invest and co-authored by James Check from Glassnode, outlines the details of the new metric.
BTC Price Outlook:
Bitcoin prices have declined after reaching an intra-week high of $26,641. At the time of writing, Bitcoin is trading at $26,110, down 1.2% for the day. It has fallen back to its short-term support zone at $26,000 and has experienced an 11% loss over the past two weeks.
Hot Take
The collaboration between Ark Invest and Glassnode to develop the Cointime Economics metric is a significant step forward in understanding and analyzing the dynamics of the Bitcoin network. This new framework provides improved valuation models and metrics that capture real economic activity more accurately. As Bitcoin continues to evolve, it is crucial to have robust tools for measuring its economics, and Cointime Economics is a valuable addition to the field.
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