Crypto Voices
Crypto Voices
Matthew Mezinskis
PE40: PSR - The best Bitcoin value model you've never heard of
21 minutes Posted Mar 9, 2023 at 1:10 pm.
Intro
Origins of metric
Numerator: Market cap ($)
Denominator: Trailing-12 month miner network revenue ($)
Ratio recap and importance
"Price-to-sales" (PSR) ratio for Bitcoin
PSR: All-time low
PSR: All-time high
Basic interpretation of low and high PSR
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Show notes
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This is the fortieth video installment from Porkopolis Economics, covering macro and money, from the creator of the Crypto Voices podcast.
Contents
Here we compare the Bitcoin network supply in USD-terms (otherwise known as the market cap) with the miner trailing-12 month revenue (block reward + fees) across the entire network. This gives us a gross "Price-to-sales" ratio; in other words, how many multiples the network is worth versus network-wide revenues, at any given time.
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