3 ms·

If you look at the graph pictured on the post, copied from the bitcoin wiki, it does not always "grow and grow", because it is in fact graphing the percentage o

by nealmcb 15y ago

If you look at the graph pictured on the post, copied from the bitcoin wiki, it does not always "grow and grow", because it is in fact graphing the percentage of the total bitcoin days, not the absolute number. This is further described on the stackexchange post, and you'll note that my answer there explains that it has been flat over the last 3 months. I agree that it is quite different from a velocity measure, simply because it was not intended to be a raw velocity measure. Bitcoin has some unusual features which require unusual metrics. This is just one that is being explored, as an alternative to raw transaction volume, as the posts explain.

trotsky 15y ago
here is the graph that I saw linked, that I used: http://banana.mine.nu/daysdest.html http://banana.mine.nu/daysdest.html the scale appears to exceed 110,000,000 - I don't believe that it is a percentage. I understand the desire to remove the noise of transfers that are not actual economic activity, but I think this is a poor way to go about it. With bitcoin it is almost as if you had the ability to record every time a dollar bill went into a pocket. Sure, some of that is economic activity but it can also just be someone changing their pants. Even if economists had that data available they'd likely still rely on the business and financial institution reports to gauge economic activity. In this way raw BTC volume is a bit of a red herring, at least until you can produce a good view of economic activity and see how it relates to BTC volume or BTCdd. As BTC continues to have an unstable price, a large percentage of the real economic activity will include exchanges for other currencies or value stores. Since exchange volume is quite centralized, you'd only need to have the cooperation of a few exchanges (you'd want to filter out traders) to gain what would probably be a rather accurate picture of real economic activity in bitcoins.

by nealmcb 15y ago

trotsky 15y ago

here is the graph that I saw linked, that I used: http://banana.mine.nu/daysdest.html http://banana.mine.nu/daysdest.html the scale appears to exceed 110,000,000 - I don't believe that it is a percentage. I understand the desire to remove the noise of transfers that are not actual economic activity, but I think this is a poor way to go about it. With bitcoin it is almost as if you had the ability to record every time a dollar bill went into a pocket. Sure, some of that is economic activity but it can also just be someone changing their pants. Even if economists had that data available they'd likely still rely on the business and financial institution reports to gauge economic activity. In this way raw BTC volume is a bit of a red herring, at least until you can produce a good view of economic activity and see how it relates to BTC volume or BTCdd. As BTC continues to have an unstable price, a large percentage of the real economic activity will include exchanges for other currencies or value stores. Since exchange volume is quite centralized, you'd only need to have the cooperation of a few exchanges (you'd want to filter out traders) to gain what would probably be a rather accurate picture of real economic activity in bitcoins.