Definition. Reserve Risk is defined as price divided by HODL Bank, used to assess the confidence of long-term holders relative to the price of the native coin at any given point in time.

Interpretation. When confidence is high and price is low, Reserve Risk is low and risk/reward to invest is attractive. When confidence is low and price is high, Reserve Risk is high and risk/reward is unattractive.

Notes. Created by @hansthered. For more information, see the post on Bitcoin days destroyed.