Is Bitcoin In A Bubble? Check The NVT Ratio
Could this be a useful ration to check for valuation
A comment on my Telegram chart group about this:
…he only problem I can see with the NVT ratio is that daily transaction value becomes a worse proxy for earnings as Bitcoin becomes less of a payment network (and more of a value storing mechanism). Having said that, it seems to do a pretty good job. Let me put it this way; I wouldn’t liquidate my BTC holdings on account of a high NVT ratio, but I might take it into consideration as part of a wider analysis.
So I suppose it depends on how you view Bitcoin as to whether or not the NVT ratio is useful; whether you foresee Bitcoin to be the currency of the future, or more like digital gold.FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!