BLOCKCHAIN ASSET INDICES
BNC builds industry benchmarks and custom indices for tracking crypto-currencies and other digital assets. Whether you require global market spots for price discovery, custom indices to power exchange traded products or reference rates for performance attribution, BNC has an index solution to meet your needs.
Digital Asset Spot Prices
The following methodology is relevant to the 100+ Digital Assets BNC tracks and displays via charts on bravenewcoin.com and makes available via API. Purpose built indices, like the Bitcoin Liquid Index (BLX), employ a custom collection cycle & methodology.
BNC gathers data continuously 24/7 from international exchanges trading a wide range of leading Digital Assets. The BNC Price Index is calculated for each coin. This is the Global volume-Weighted Average (GWA) price across all the markets for the coin. It is a nominal rate for a coin in USD dollars that makes accurate global price discovery, currency conversion and comparison of estimated market capitalization possible.
BNC categorizes cryptocurrencies into two main index groups; the Digital Currencies and Digital Assets. Each are separately selecteable from the BNC coin ranking table.
Exchanges often transact in multiple currencies. Data for each individual coin market is collected separately by BNC. For every data collection cycle the weighted average is calculated for each currency's & asset's market. For example, the Market Weighted Average (MWA) for Bitcoin traded in Chinese Yen, BTC-CNY, is the indexed average across all the exchanges trading that currency pair weighted by the volume traded in the last 24 hours at each exchange.
The Marketplace for each coin is the collection of all its markets. The coin's global price index is the volume-weighted average of its MWA's converted to USD.
Fiat exchange rates are obtained from OpenExchange, an internationally recognized source. The data obtained is the USD conversion rate for all traded fiat currencies thus providing the basis to convert to any Digital Asset/Currency to any fiat.
BNC also accesses Blockchain information for mineable coins (and website information for non-mineable) to obtain the total number of coins in existence. This allows the calculation of the market capitalization for each coin displayed in the ranking table on the Coin's page. Market capitalization is calculated from the product of the total number of each coin with its global price index. BNC stresses that Market-Capitalization is often a misleading data-set for many pre-mined currencies like Ripple.
Exchanges that trade in Digital Assets/Currencies provide feeds of their current data. BNC collects this data for all the significant coins from all the exchanges known to be trading them. The data collection cycle for all exchanges is completed every 5 minutes and includes the last trading price for each coin and the volume traded in the previous 24 hours. Where exchanges make it available BNC also collects the last ask price and last bid price for each trading currency pair.
BNC reports when an exchange feed is unavailable for any period of time.
Data from new exchanges and Digital Assets/Currencies will be included as they come into play.
BNC builds specialist & purpose built indices for more liquid assets, like the flagship 'Bitcoin Liquid Index' (BLX) for bitcoin, designed to be a true reflection of the market as sourced from trusted and liquid pools of bitcoin trading globally.
The currency conversion tool and the currency controls for the ranking table on BNC's Coins page convert between fiat and Digital Assets/Currencies on the basis of each coin's US Dollar denominated GWA (Global Spot).