- Demeester has spent time and resources to study other Bitcoin valuation tools in the industry.
- The tools assist in “estimating HODLer buying and selling.”
Valuing assets is key to investors especially in a relatively new market like the cryptocurrency market. This is why the founder of Adamant Capital, a digital assets investment company recently released what he terms as the “new tools” for valuing Bitcoin and other cryptocurrencies.
These tools, which were released in Medium blog post are meant to help investors in “approximating sentiment” through the analysis of profit and loss. Besides, the tools assist in “estimating HODLer buying and selling.”
Demeester has spent time and resources to study other Bitcoin valuation tools in the industry. He, in fact, refers to his tools as advanced Bitcoin valuation tools. They include a “solution to collect data that places each circulating quantity of Bitcoin in its historical context, in the tradition of previous work such as HODL Waves, Realized Cap, and MVRV (Market-Value-to-Realized-Value).”
The behavior of Bitcoin savers is measured using the “Output Quantities of a block” combined with the “Recorded Time of that block.” Demeester says that by valuing “every coin at the time it last moved” followed by the aggregation of all the value transferred, which is arrived at by accumulating a list of the transactions, Adamant Capital is able to come up with the “Realized Capitalization.” Demeester concludes in the Medium post:
“By creating tools that measure changes in saving behavior on the Bitcoin settlement layer, we believe to have meaningfully contributed to the valuation debate. Relative Unrealized Profit/Loss in Bitcoin tells us about Mr. Market’s emotional state, HODLer Net Position Change gives us information about how Bitcoin whales are moving their pieces on the chessboard, and Liveliness gives us a powerful tool to meaningfully compare long-term investor activity, as well as a platform for building new valuation measures in this space.”
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