Pantera Capital’s interest in bitcoin has been growing immensely over the past year (that is their business, after all). So much so, in fact, the company has announced the launch of a little something they are calling the “Bitindex”.
News of this Bitindex came in the form of a newsletter sent out to investors recently, in which the company suggested the index would be of use for medium-term forecasting of bitcoin movements. But that’s not to say its a measure or forecast of the bitcoin price:
Pantera has developed the BitIndex to inform our views on bitcoin. It is not a tool to forecast bitcoin’s price. This index is designed to assist us in forming our views on what may happen to bitcoin in the medium term.
Said Bitindex takes measure of seven data points. They are: developer interest on Github; Merchant adoption; Wikipedia views; network hashrate; Google searches; user adoption measured by wallets; and transaction volume.
Certainly, the Bitindex won’t be of much use to everybody. Many enthusiasts and investors alike simply prefer easily-accessible price charts already available on the web. And with blended indexes like the Winklevosses’ WinkDex, price-watchers are easily able to get an average.
Pantera Capital not only invests directly in bitcoin, but also funds start-ups that operate in the space.
[textmarker color=”C24000″]Source[/textmarker] CoinDesk, Digital Currency Magnates