Thermocap Ratio
Thermo cap sums what miners have received in US dollars for block subsidies and fees since 2009 — the network's cumulative security spend. Its ratio to market cap says how much market value rests on each dollar spent. Because the denominator never falls, the floor rises from era to era (measured lows: ~1.4× in 2015, ~5.7× in 2018, ~6.8× in 2022) — values compare only within an era or as percentiles. Derived by us from two BRK series and persisted. Descriptive, not a signal.
- Formula:
- Thermocap Ratio = Market Cap ÷ Thermo Cap · Thermo Cap = Σ (block subsidy + fees) × price at issuance
- Originator:
- Nic Carter (thermocap, 2018)
- Data source:
- BRK (Bitcoin Research Kit, brk_market_cap ÷ brk_thermo_cap → brk_thermocap_ratio, abgeleitet in der Ingestion, point-in-time in btc_chart_metrics)
Strategies to backtest
Thematically related strategies from our library — try them in the backtest engine or read up on the methodology.
The benchmark for everything else — buy on day one, hold forever. The reference every strategy is measured against.
Open strategy →Buy a fixed amount on a fixed schedule — week after week, regardless of price. Smooths volatility, removes timing decisions.
Open strategy →More Bitcoin indicators
Daily coin issuance in USD relative to its 365-day average. Values above 4 indicate miner-profit overheat (top), below 0.5 mark capitulation bottoms.
30-day hashrate MA vs 60-day hashrate MA. When the 30d falls below the 60d = miner capitulation. Recovery cross back up = classic buy signal.
Estimated mining floor: average electricity cost + 30% operational overhead per BTC produced. Cambridge CBECI as data source.