ARK, Glassnode propose Bitcoin economic analytics framework using new metric
In Cointime Economics, the time Bitcoin has been held is considered when it is transacted, giving hodlers’ transactions greater weight. ARK Invest and Glassnode have released white papers describing a proposed framework for analyzing Bitcoin on-chain metric s. The new method is called Cointime Economics and introduces a new measure – the coinblock – to represent the state of the Bitcoin (BTC) network. Cointime Economics can be used to represent Bitcoin’s economic state in place of outstanding supply. The use of the new system may improve valuation metric s and provide a new analytical tool to measure Bitcoin activity, according to authors David Puell of ARK Invest and James Check of Glassnode. They said: “The importance of a single bitcoin should vary based on the last time it moved. Upon its transfer, for example, the information value of a bitcoin that had been unmoved for 10 years is more important than one that had been unmoved for 1 week.” The reasoning behind this supposition...