Cathie Wood’s asset management giant ARK Invest and popular blockchain analytics firm Glassnode recently released a new whitepaper for on-chain analysis of Bitcoin. Titled Cointime Economics, the new framework included a representation of Bitcoin’s economic state, improvements to traditional Bitcoin valuation metrics, and a new set of on-chain analytics to measure BTC’s activity.
Glassnode took to X (formerly Twitter) recently to announce the Cointime Economics whitepaper:
Introducing Cointime Economics, a new framework for #Bitcoin analysis, by @_Checkmatey_ of @glassnode, and @dpuellARK of @ARKInvest
— glassnode (@glassnode) August 24, 2023
This novel framework establishes a new suite of analysis tools, 30+ new metrics, and improved valuation and pricing modelshttps://t.co/ULunEhP01c
The 23-page long Cointime Economics report was written after an 18-month-long collaboration between ARK Invest’s David Puell and Glassnode’s James Check. The whitepaper was based on the previous work done by Tamas Blummer, an early Bitcoin developer. It included a new framework to assess BTC’s economic state, over 30 on-chain metrics for fundamental analysis, and presented Coinblock as a new unit of economic measurement.
The whitepaper was published in two versions: the ARK Invest version meant for the general investor, and the Glassnode version meant for the on-chain specialist, market analyst, or academics. It proposed the coinblock i.e. the multiple number of coins and the time of holding said coins, as a fungible unit of measurement for that flagship cryptocurrency’s economic activity.
Speaking on the newly released whitepaper, Glassnode’s Check stated:
I really hope this inspires a new suite of ideas and progress in the analysis of Bitcoin. The more robust and battle-tested analysis frameworks we establish, the easier it will be for capital managers to understand, and then allocate.
The new framework revolved around coinblocks as the principal unit of account in the dimension of ‘investor holding time’ of the Cointime Economics framework. Given that coinblocks were fully tangible, they could be valued against the spot price which created time-weighted and value-weighted flows.
The crypto community on X lauded Puell and Check for their latest contribution to the BTC space. Analysts and influencers online agreed that the Cointime Economics framework would be revolutionary for Bitcoin’s on-chain analysis.
