The Metrics of Bitcoin Mining

From the desk of Louis Sykes @haumicharts

The level of transparency in Bitcoin and crypto as an asset class allow us to gain deep and actionable insights that aren't possible in traditional markets.

As we begin incorporating more of this high-level, sophisticated data as a supplement to our technical analysis, it often allows us to express greater conviction when the setups emerge.

In what's become common in our weekly letters we publish on Monday, a good portion of our crypto macro thesis is being driven by the signals we're seeing on-chain.

Whether we're whale watching, analyzing HODLers, looking at coin maturation, studying spending habits, measuring profitability, or using a wide number of other metrics, we're learning a ton of valuable information we'd kill for in traditional markets.

As any good technician, when it comes to equities, we take a lot of data sets with a grain of salt. Often, the CEO, management, or the auditors themselves are lying or simply overlooking important details.

It's why we have to manually pour through thousands of datasets in our internal scans to get the cleanest, most reliable data to make the best decisions possible.

But in the world of cryptocurrencies, there aren't any trust issues.

We're not at the mercy of negligent or mischievous managers. The very nature of the blockchain itself is that it's a public ledger where anyone can observe, analyze, and categorize transactions.

When it comes to the topic of today's post -- Bitcoin mining -- we have a great list of reliable metrics to fall back on from an analytical perspective.

We wanted to dive into a few of these metrics: how they help us understand the dynamics at play driving mining; how they can help us directionally analyze Bitcoin mining stocks; and the potential reads we can gain into broad market trends using mining metrics.