Thermo_Cap

Tech spec

Brief Description: The cumulative US dollar value of all Bitcoin mined at the time of issuance,.

Thermo_Cap represents the cumulative cost of all bitcoins at the price they were mined. It essentially capturing the total energy expenditure in Bitcoin mining over time, and as such the economic input for securing the network.

Interpretation The significance of Thermo_Cap lies in its representation of the historical investment in Bitcoin's security and network infrastructure. As a part of the Realized Cap, it complements the Investor Cap by providing a comprehensive view of the total realized economic value stored in the Bitcoin network.

Advanced Explanation Thermo_Cap measures the total rewards in the form of block rewards and transaction fees that miners have earned. This metric essentially quantifies the amount of value miners have injected into the network's security. By aggregating the rewards received in USD, Thermo_Cap offers insights into the economic scale and security investment over the Bitcoin network’s lifetime.

One way to conceptualize Thermo_Cap is by considering it as the network's aggregate investment in security. It tallies the rewards miners have claimed, which in turn reflects the resources (like electricity and computational power) they've expended to secure the network. This total spend is an important indicator of the network's resilience against attacks and its overall health.

Thermo_Cap =  Cummulative ∑(Issuance * Price)

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/