Bitcoin's Viability as a Future Currency
NVT Ratio
Traditional PE ratios measure price to earnings as a standard unit unsed to value companies. Entering the crypto market we need new units of measurement to evaluate various currencies. With only a token price and no 'earnings' we must look deeper as to what crypto curriences represent.
Crypto currencies represent a store of value that can be utilized for payments through it's blockchain network.
With a limitied supply of 21 million bitcoins, each divisible into 100 mllion satoshis, bitcoin is a highly salable form of currency able to counteract certain forces of inflation. New bitcoin are rewarded to successful miners who solve the complex mathmatical equations to approve the newest transaction blocks.
High NVT Ratios indicate high speculative value. Network Value is outpacing the value being transferred on the network. Indicates growth stages or potential bubbles
LOW NVT -> network value isn't keeping up with increased usage of the network -> bearish
Sources: <<<<<<< HEAD
- NVT - woobull ======= NVT - woobull
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