A Quantified Look At The Monetization Of Bitcoin

The below is an excerpt from a recent edition of Bitcoin Magazine Pro, Bitcoin Magazine’s premium markets newsletter. To be among the first to receive these insights and other on-chain bitcoin market analysis straight to your inbox, subscribe now.

Today, we’re providing an in-depth breakdown of realized market capitalization. Traditional asset classes along with bitcoin itself are often quoted in terms of their market capitalization, which is calculated by finding the product of price and circulating supply. With bitcoin, and the introduction of a completely transparent set of property rights, you can calculate the realized market capitalization, which values ​​each unit of supply at the price it was last moved across the network.

The realized market capitalization of bitcoin is one of the best ways to quantify the monetization process of the asset, as the infamous volatility of the asset is seemingly only occurring to the upside. The fluctuations in the exchange rate are not nearly as volatile as the gradual-then-sudden appreciation of the realized market value of the asset.

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