Coin_Blocks_Stored

Tech spec

Brief Description: Coinblocks stationary in the Bitcoin network.

Coin_Blocks_Stored tracks the accumulation of Bitcoin that remains inactive. It reflects economic activity and is a fundamental unit in the Cointime Economics framework.

Interpretation Coin_Blocks_Stored is instrumental in analyzing the Bitcoin market and network. A higher Coin_Blocks_Stored indicates a trend towards holding or 'HODLing', as more coinblocks are being stored than destroyed. Conversely, a decrease in Coin_Blocks_Stored suggests increased spending or movement of Bitcoin, as more coinblocks are being destroyed. This metric helps in understanding the behavior of Bitcoin holders and their impact on market dynamics, offering insights into the phases of accumulation and spending within the Bitcoin economy.

Advanced Explanation A coinblock is the lowest, fully fungible unit of measurement in Bitcoin, representing the product of coin volume and lifespan. Coin_Blocks_Stored measures the accumulation of coinblocks that are not actively transacted. It is calculated by assessing the difference between coinblocks created (CBC) and coinblocks destroyed (CBD) at each blockheight. The metric provides insight into the quantity of coinblocks that remain stored in the network after accounting for those created and destroyed. It's important to note that Coin_Blocks_Stored can sometimes be negative, indicating a net destruction of coinblocks.

Coin_Blocks_Stored is a primitive of cointime economics. Cointime Economics is a new framework for Bitcoin onchain analysis published by James Check and David Puell. References: https://ark-invest.com/white-papers/cointime-economics/ and https://insights.glassnode.com/introducing-cointime-economics/