3 ms·
A larger number means that people are holding onto BTC for long periods of time, a smaller number means that people are spending BTC soon after receiving it. I
by niggler 14y ago
A larger number means that people are holding onto BTC for long periods of time, a smaller number means that people are spending BTC soon after receiving it.
In a sense, its a more granular way of looking at money velocity.
- eric_bullington 14y agoCan you please explain what you mean by "a more granular way of looking at money velocity"? This is probably a good point, but I'm missing it. I understand "granular" and "money velocity", but am having trouble understanding what you mean here.
- niggler 14y agoMoney velocity is an aggregate phenomenon: if a single dollar is passed around a billion times, it is treated the same as a billion dollars passed around once. Under BDD, if i understand it correctly, the single dollar case would result in a nearly 100% BDD while the billion dollar case is much more modest. It looks at each bitcoin independently. The dollar analogy would be if we kept track of every single dollar bill etc.