Texas Crypto Fund Unveils Two New Ways to Value Bitcoin
In a paper published this week, Tuur Demeester’s US crypto fund, Adamant Capital, suggests two new ways of determining the relative market value of Bitcoin.
One measures investor sentiment; it’s called Relative Unrealized Profit/Loss Ratio. HODLer Position Change (HPC) is perhaps more interesting. Adamant finds HPC by measuring blockchain “liveliness.”
They explain the concept as such:
“A blockchain where all the coins move within a single block has at that moment a Liveliness of 100%. A blockchain of two years old with no new block rewards, and where exactly one year ago all coins moved within a single block and no transactions moved since, would have a liveliness of 50%. In other words, the measure fluctuates relative to the total lifespan of the blockchain.”
Read the full story on CCN.com.
