Cointime Price reflects the aggregate cointime-weighted realized valuation, distributed over the remaining unspent coinblocks stored within the network. It is both a network time-weighted and volume-weighted average realized price. It can be considered as the relative balance between the willingness of the market to spend time and value against the willingness of asset holders to keep owned coins and value inactive.

Model Derivation

A series of pricing models may be derived directly from the Cointime Economics framework, the most foundational of which is the Cointime Price, as well as the Cointime Cap. These valuation models are based on the notion that all coinblock destruction reflects an economic decision and indicates that the spent coins are indeed active, non-lost, and thus are participating in the global Bitcoin economy.

The network total coinblock-value destroyed is distributed across the remaining cointime volume stored in the system. This nets Cointime Price, which is the Cointime Economics analogue of the UTXO derived Realized Price.

Cointime Price = cumsum(Cointime Value Destroyed) / cumsum(coinblocks stored)

🕰️ In honour of the late Tamás Blummer, who’s original work on ‘Liveliness’ and ‘HODLed and Lost Coins’ is the bedrock inspiration for the Cointime Economics paper, we dedicate the Cointime Price to his memory, offering it the colloquial name of the Blummer Price.

Coined By

This metric was developed within the Cointime Economics framework for Bitcoin. This project was a joint venture between Glassnode and ARK Invest, with full details available in two formats: an overview primer (Version I published via ARK) and a comprehensive guide for specialists (Version II published via Glassnode).