New Model for Bitcoin Valuation Emerges: Cointime Economics by Glassnode and Ark Invest

Glassnode and Ark Invest have collaborated on the creation of Cointime Economics. A novel economic model designed to assess Bitcoin’s onchain metrics in a unique way. 

Instead of relying on the conventional method of unspent transaction outputs (UTXOs), the framework introduces the concept of “coinblocks,” which considers the number of bitcoins multiplied by the number of blocks they remain inactive. This approach aims to evaluate the economic value of each bitcoin based on its dormancy duration. The model introduces new metrics like “liveliness” and “vaultedness” to gauge network activity and inactivity. It modifies existing valuation ratios and introduces “Cointime Price,” offering a fresh perspective on Bitcoin’s economic significance. The researchers behind Cointime Economics, James Check and David Puell, believe that this innovative framework enhances the analysis of Bitcoin’s onchain fundamentals by incorporating the element of time coins are stored.

Clever Robot News Desk 29^th August 2023