Bitcoin is unlike any other financial asset before it. Rather than relying on operating expenses and other revenue figures, or reviewing executive teams and board members, Bitcoin is an autonomous, decentralized cryptocurrency network.
No third-party or intermediary controls the network. Miners using powerful, energy intensive machinery keep the network in operation, and for their efforts they receive a block reward of 6.25 BTC.
This keeps the network in operation by incentivizing miners through generating revenue. However, like any business, this revenue is only profitable when operating expenses allow for large enough margins.
This ecosystem is what keeps the network alive and well, and what the asset itself derives much of its value from.
The health of this ecosystem is constantly changing, depending on how much value is being transacted across it, to how difficult mining is for miners, to the ebb and flow of energy costs associated with operating the network.
Various tools have been developed that can assist analysts with fundamental analysis. Bitcoin fundamental tools have the unusual side effect of also working as relatively solid technical analysis indicators.
This blend of technicals and fundamentals is relatively unique to Bitcoin, and such, we’ve dedicated an entire section to understanding these important tools.