PE40: PSR - The best Bitcoin value model you've never heard of

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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

00:00 Intro

00:28 Origins of metric

01:54 Numerator: Market cap ($)

03:42 Denominator: Trailing-12 month miner network revenue ($)

05:55 Ratio recap and importance

09:10 "Price-to-sales" (PSR) ratio for Bitcoin

10:30 PSR: All-time low

16:20 PSR: All-time high

19:37 Basic interpretation of low and high PSR

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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