> For the complete documentation index, see [llms.txt](https://docs.bamk.fi/bamkfi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.bamk.fi/bamkfi/roadmap/nakamoto-index.md).

# Nakamoto Index

The Nakamoto Index is a metric designed to leverage the power of Bitcoin's blockchain to determine the value of Bitcoin in a self-referential manner. This index is made possible through the introduction of Nakamoto Dollars, *NUSD*, a synthetic dollar integrated directly onto the Bitcoin network. As NUSD is traded among market participants, the entire price history is recorded on the blockchain.

By analyzing this onchain data, the Nakamoto Index provides a reliable and decentralized reference for Bitcoin's price. This self-referential pricing mechanism enhances the transparency and trustworthiness of Bitcoin's value - leveraging the immutable and decentralized nature of the blockchain. The Nakamoto Index represents a significant advancement in cryptocurrency valuation, utilizing Bitcoin's inherent strengths to create a more robust and accurate pricing system.