The Bitcoin Yardstick is a metric developed by Capriole Investments as a simple, rule-of-thumb tool for Bitcoin valuation. The Hashrate Yardstick is similar in concept to a PE Ratio, except instead of stock earnings, it takes the ratio of energy work done to secure the network in relation to Market Cap.

Bitcoin Yardstick = Market Cap / Hashrate normalized by a 2yr rolling Z-Score.

Three notable conditions are defined as points of interest by the author:

• Yardstick < -1σ Under the Mean
• Yardstick > +2σ Above the Mean
• Yardstick > +3σ Above the Mean

Coined by

Capriole Investments (November 2022) - Introducing: The Bitcoin Yardstick