The Signal & the Nonce, Reimagined
Adopting a new methodology, we present novel data to rethink some of Bitcoin’s most pressing issues including electricity consumption, miner efficiency, and E-waste.
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The Half-Time Show: The State of Bitcoin Network Security After the Halving
Block rewards are currently the primary source of revenue for miners. A reduction in this reward due to the halving causes some miners to exit the network. In the short term the sudden drop-off of miners can potentially leave the [...]
Stablecoin Heatmaps Show Tether is Mostly Used During Asian and European Market Hours
Stablecoin market capitalization has almost doubled since the Black Thursday crash. But the exact cause of the surge is still unknown. To help elucidate how different stablecoins are being used, we analyzed the times of day that stablecoins are being [...]
Introducing the CMBI Bitcoin Hash Rate Index and ‘Observed Work’
Designing The Tools For Hash Rate Futures: Introducing the CMBI Bitcoin Hash Rate Index and ‘Observed Work’ Key Takeaways To date, the critical role of Bitcoin miners has been unhedged and solely dependent on the price of Bitcoin. However, [...]
Creating a Better Supply Measurement: Introducing Free Float Supply
An accurate measure of supply is crucial in determining a cryptoasset’s value. However, the definition and methodologies of calculating supply are not yet widely agreed upon or standardized, which leads to different supply counts across the industry. One definition of [...]
Assessing the Long-Term Fallout from Crypto’s Black Thursday
On March 12th 2020, now called “Black Thursday,” Bitcoin’s price dropped by nearly 50%, one of its largest drops since the Mt. Gox debacle. Source: Coin Metrics Reference Rates In our 43rd issue, we looked at the impact of that [...]
Investigating Bitcoin’s Changing Correlations
Is Bitcoin an Uncorrelated Financial Asset, A Safe Haven Asset, or Both? Investigating Bitcoin’s Changing Correlations By Nate Maddrey and the Coin Metrics Team The narratives about Bitcoin’s value have shifted over the years, and continue to be debated today. At different points, Bitcoin has [...]
The Signal and the Nonce Redux: From S9s to S17s
As Bitcoin enters its next halving, the network is experiencing several simultaneous transitions. In addition to the severe change in mining economics being caused by the reward adjustment, Bitmain’s Antminer S17 is in the process of replacing the longstanding S9 [...]
Understanding Miner Economics From First Principles
The next halvening is approaching, yet debate about its impact on asset prices remains mired in controversy. Two camps have formed. One believes the halvening is already priced in by market participants, citing the efficient market hypothesis. The other camp [...]
The BitMEX Liquidation Spiral
Analyzing How Crypto’s Nascent Market Structure Held Up During the Crash In the previous issue of State of the Network, we presented some preliminary analysis of the recent dramatic crash in cryptoasset prices. We showed that on-chain data seem to [...]