ARK, Glassnode propose Bitcoin economic analytics framework using new metric

cointelegraph.com:

ARK Invest and Glassnode have released white papers describing a proposed framework for analyzing Bitcoin on-chain metrics. The new method is called Cointime Economics and introduces a new measure – the coinblock – to represent the state of the Bitcoin (BTC) network. 

Cointime Economics can be used to represent Bitcoin’s economic state in place of outstanding supply. The use of the new system may improve valuation metrics and provide a new analytical tool to measure Bitcoin activity, according to authors David Puell of ARK Invest and James Check of Glassnode. They said:

The reasoning behind this supposition is found in a footnote:

Thus, when long-dormant Bitcoins are moved, it is likely to be the action of hodlers and whales, and so more significant than actions with more newly mined Bitcoin. Lost Bitcoins do not count at all.

A coinblock is the basic unit used for calculation. It is determined by multiplying the number of Bitcoin by the number of blocks (the basic unit of mining) produced while the Bitcoin do not move. “Because the Bitcoin network produces a block every 10 minutes on average, one coin generates approximately 144 coinblocks per day: 6 blocks produced per hour multiplied by 24 hours,” the authors write.

Coinblocks are “destroyed” in line with the length of time the Bitcoin was held: “If two bitcoins had not moved in seven blocks and then transacted, for example, 14 coinblocks would have been destroyed.” Bitcoin that had been held longer thus produce a larger number of coinblocks destroyed, pointing to higher activity by hodlers. Coinblocks destroyed is a variation of coindays destroyed, a metric that Glassnode already employs.

In comparison, the traditional Unspent Transaction Output (UTXO) model, which is