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Valuing Bitcoin

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This research report will identify and analyse the different methodologies for valuing Bitcoin. We will use each of these methodologies to better understand the different trends in relevant data points for the crypto asset over time.

This report will focus on five unique metrics: the Network-Value-to-Transactions (NVT) Ratio, the Network-Value-to-Realized-Value (NVRV) Ratio, the Network-Value-to-Hash-Rate (NVHR) Ratio, and the Active Addresses metric. In addition, we will analyse the various market sizing analyses done for Bitcoin including comparisons to the global remittances and gold markets. Finally, we will conduct an intrinsic valuation calculation for Bitcoin using the Equation of Exchange. As a whole, the metrics suggest that the Bitcoin bear market is truly over – with a further sustained drawdown extremely unlikely – and that Bitcoin’s fundamentals are likely to support further growth in the market over the next 18 months.

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