ARK Invest and Glassnode Introduce Cointime Economics: A New Framework for Analyzing Bitcoin's On-Chain Metrics
Summary:
ARK Invest and Glassnode have released a white paper on Cointime Economics, a new framework for analyzing Bitcoin's on-chain metrics. The system introduces the measure of coinblocks to represent the state of the Bitcoin network. It aims to improve valuation metrics and provide a valuable tool for measuring Bitcoin activity. The white paper highlights the importance of long-dormant Bitcoins and introduces three use cases for Cointime Economics.
ARK Invest and Glassnode have published white papers outlining a new framework called Cointime Economics for analyzing Bitcoin on-chain metrics. Cointime Economics introduces a new measure called the coinblock, which represents the state of the Bitcoin network. This new system aims to improve valuation metrics and provide a valuable analytical tool for measuring Bitcoin activity. According to David Puell from ARK Invest and James Check from Glassnode, the significance of a bitcoin should vary depending on the duration since its last movement. They suggest that coins held for a longer period of time indicate ownership by experienced market participants and should be given more importance when analyzing Bitcoin's economic state. Coinblocks, the basic unit used for calculation, are determined by multiplying the number of Bitcoins by the number of blocks produced while the Bitcoins remain stagnant. Coinblocks are destroyed when Bitcoins are transacted, and this destruction is proportional to the length of time the Bitcoins were held. The concept of coinblocks destroyed provides insights into the activity of long-term holders. The traditional Unspent Transaction Output (UTXO) model, which treats all Bitcoins equally, differs from the Cointime Economics model and presents a different perspective on the market. The white paper also presents three use cases to demonstrate the practicality of Cointime Economics. A more advanced version of the white paper is available for blockchain specialists and includes a suite of Cointime Economics metrics provided by Glassnode. ARK Invest is an investment management company founded by Cathie Wood, while Glassnode is a Swiss-based market intelligence service.
Published At
8/24/2023 8:10:00 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.