Analysts Introduce Innovative Framework to Decode Bitcoin Economy in Bear Market

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By BitcoinWiki News



Summary:

Investment firm Ark Invest and blockchain security firm Glassnode have released a whitepaper titled “Cointime Economics: A New Framework For Bitcoin On-chain Analysis.” The paper proposes a new model called “cointime” which assesses the economic importance of Bitcoin based on the last time it was moved. The whitepaper introduces the concept of “coinblocks” and suggests that heavy coinblock destruction indicates long-term holders selling their Bitcoin. It also introduces two new metrics for analyzing Bitcoin’s economic state: “liveliness” and “vaultedness.” The authors claim that the cointime framework provides a consistent and mathematical approach to understanding the economic realities of Bitcoin.

Brief Summary:

An investment firm and a blockchain security firm have published a whitepaper introducing a new framework called “Cointime Economics.” This framework assesses the economic importance of Bitcoin based on the last time it was moved, introducing concepts like “coinblocks” and metrics like “liveliness” and “vaultedness” to analyze Bitcoin’s economic state. The authors claim that this framework provides a mathematical approach to understanding Bitcoin’s economy.

Thought-Provoking Questions/Insights:

1. How does the cointime framework differ from the traditional unspent transaction (UTXO) framework when analyzing the economic importance of Bitcoin?

2. What are the potential implications of heavy coinblock destruction on Bitcoin’s market dynamics and investor behavior?

3. How could the introduction of metrics like “liveliness” and “vaultedness” help in assessing Bitcoin’s economic activity and protocol activity respectively?


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