Glassnode and Ark created a new blockchain analysis method that suits very well to investors at the time they wish to start an audit; some specific metrics depending on the size and strategy of the investor.
Bitcoin is famous for being an asset with a lot of favorable features, but perhaps the most important ones are its transparency and the easy way it has to receive an audit.
Ark, a company that specializes in disruptive investments, and Glassnode, who specializes in blockchain analysis, established in the first of a series of three publications a new method of fundamental analysis of Bitcoin.
Bitcoin is continuously under the radar of institutional investors critics because of its volatility, and instability as an asset. These institutional investors believe that adopting this cryptocurrency is high risk; this idea comes in a certain way from the traditional financial system.
Bitcoin possesses a massive range of data that permits a successful analysis of its fundamental elements. Those participants in the market can make visual contact with data from the blockchain in a deeper way than those traditional assets out there, they can visualize data from the Bitcoin blockchain in a better way than with any other traditional asset.
Among the elements that provide transparency and a better disposition to audit to Bitcoin, there are the simplicity and traceability of its accounting system, based on outputs (UTXO). They also argue that Bitcoin’s codebase’s been under audit many times, maybe more than any other free software in the crypto-industry.
Different Qualities in Comparison with Traditional Systems
These qualities differ in various points to the nature of traditional assets, which can rarely suffer an audit as completely as Bitcoin to determine the market behavior.
Moreover, they also make a special mention of bitcoin nodes, which assure an integrated environment in the network and are by far more cost-efficient than the nodes of alternative cryptocurrency networks.
A node is within easy reach, and anyone can have access to this data without having to trust third parties. This does not happen with the traditional system, and it is precisely what makes bitcoin a so interesting alternative.
Ark and Glassnode will Continue to Publish the Approximation they Make of the Data they Collected in Bitcoin
The method forges its structure through a three-level system, where the first level establishes the heart and functions of the network; the second works as an analyzer of the behavior of buyers and sellers, it is more under the specter of the market, while the final level studies in a more profound way the relativity that embraces the valuation of the asset.
In the end, it is important to take into account the use and adoption of the network, the number of active addresses, the number of transactions, and the volume of transactions are related to the total market capitalization.
In the next few days, Ark and Glassnode will continue to publish the approximation they make of the data they already possess from Bitcoin. The main focus is to pave the way for investors to execute at ease a successful investment strategy.
By: Jenson Nuñez