Bitcoin’s Power Law Explained Through Real Market Data

Show Notes

Matthew breaks down one of Bitcoin’s most important valuation tools: the Price to Sales Ratio, or BSR. Using miner revenue as the backbone of the calculation, he explains why this metric offers a uniquely fundamental way to understand how expensive or cheap Bitcoin is relative to the economic activity that secures the network. With miner revenue currently around $18 billion annually, Matthew shows how this compares to Bitcoin’s multitrillion dollar market cap and how the resulting multiple reveals whether the network is running hot or cold. A Clip From Porkopolis Economics Episode 279 Chapters: 00:00:00 - Intro 00:00:36 - Bitcoin's Price Climb and Wall of Worry 00:00:57 - Understanding the Price to Sales Ratio 00:01:11 - Bitcoin Mining Revenue and Marginal Costs 00:01:58 - Bitcoin PSR Analysis and Market Valuation Show Sponsor: Debifi - https://debifi.com/ Donations to Porkopolis Economics via BTCPay are appreciated: https://donate.basemoney.world/i/9Y1RzT4cp3y8VEYhjEKkwi Host: Matthew Mezinskis https://porkopolis.io Twitter: https://x.com/porkopolis_econ Show content is not investment or financial advice in any way. #bitcoin #economics #powercurve