As Bitcoin is the most important cryptocurrency, and has been around the longest, we’re going to look at measuring its health. You can then apply the same approach to other cryptocurrencies, adapting the metrics based on their differing objectives and designs.
Remember Bitcoin is a new form of internet money, whereas other cryptocurrencies are trying to solve other problems around transfer of value and data, in a decentralised way.
Bitcoin’s health metrics can be broken down to three key criteria, each with a number of metrics that can be used to measure them.
- Achieving Scarcity – Measuring integrity of the Monetary Supply
- Security – A measure of how Secure the network is.
- Usage – Measuring how many people are actually using Bitcoin?
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