Masterclass #2: The Checkonchain Framework

After many years studying the behaviour of investors baked into Bitcoin's blockchain, we introduce our distilled framework for how we think about, and apply onchain analysis tools to Bitcoin markets.

I would have written a shorter letter, but I did not have the time. - Blaise Pascal

This is one of our all-time favourite quotes, and we love what it highlights; that succinct simplicity is often much harder to achieve than complexity.

Having spent several years studying and developing onchain tools and methodologies, we have explored a great many rabbit holes, often by adding complexity to our models. We have also hit numerous dead ends. Having traversed these grounds, today I am presenting what I believe is a relatively simple, yet effective framework for how to think about onchain data.

💡Most onchain metrics are a cross-section of the Bitcoin supply, telling us a story about who holds it, for how long, and how profitable they are.

This article aims to help our subscribers understand the critical pillars that make onchain analysis so powerful. We introduce the core data types, and a schematic for how we categorise and think about onchain metrics and tools to explore cross-sections of the Bitcoin supply and holder-base.