Topic: Coindays Destroyed, i need some education. (Read 201 times)
"Coindays destroyed" used to be a measure that allowed zero-fee transactions, but this was removed from Bitcoin Core several years ago, together with the ability to send zero-fee transactions. I used this feature whenever I could to reduce fees (it required a certain minimum input amount and had maximum transaction size).
Let's say I have 2 wallets:
- the first has 10 BTC on it that I hold since 5 years
- the second has 10 BTC on it that I own since 1 week
Today I want to buy something with 2 BTC, if I use the first wallet it will have more weight than the second... for the same amount (2BTC)
amount of the transaction X number of days since those coins are sleeping
wallet 1: 2BTC x (365 days x5 years)= 3650
wallet 2: 2BTC x 7 days = 14
See the difference for the same volume...
It can show a wallet is waking up after a long period of activity but other than that, I don't see the use or perhaps still don't understand..
- the first has 10 BTC on it that I hold since 5 years
- the second has 10 BTC on it that I own since 1 week
Today I want to buy something with 2 BTC, if I use the first wallet it will have more weight than the second... for the same amount (2BTC)
amount of the transaction X number of days since those coins are sleeping
wallet 1: 2BTC x (365 days x5 years)= 3650
wallet 2: 2BTC x 7 days = 14
See the difference for the same volume...
It can show a wallet is waking up after a long period of activity but other than that, I don't see the use or perhaps still don't understand..
But, no one has ever been able to show me where it really matters.
It just shows if holders are selling or not.
Most of the volume comes from traders who will sell if it price goes up.
When thousands of days are destroyed, we have a movement of selling which is deeper than the usual, when true holders are selling.
It also can prevent fake volumes, like the smart person sending coins back and forward.
I don't think it is an useful metric... but that is it.
From the nc50lc link:
Quote
The idea of "bitcoin days destroyed" came about because it was realised that total transaction volume per day might be an inappropriate measure of the level of economic activity in Bitcoin. After all, someone could be sending the same money back and forth between their own addresses repeatedly. If you sent the same 50 btc back and forth 20 times, it would look like 1000 btc worth of activity, while in fact it represents almost nothing in terms of real transaction volume.
With "bitcoin days destroyed", the idea is instead to give more weight to coins which haven't been spent in a while.
With "bitcoin days destroyed", the idea is instead to give more weight to coins which haven't been spent in a while.
Fact:
Link to WiKi:
https://en.bitcoin.it/wiki/Bitcoin_Days_Destroyed
Opinion:
*I* feel that it is an interesting but not particularity useful metric.
There are some people who feel differently. But, no one has ever been able to show me where it really matters.
-Dave
edit: what nc50lc said 30 seconds before me
Link to WiKi:
https://en.bitcoin.it/wiki/Bitcoin_Days_Destroyed
Opinion:
*I* feel that it is an interesting but not particularity useful metric.
There are some people who feel differently. But, no one has ever been able to show me where it really matters.
-Dave
edit: what nc50lc said 30 seconds before me
I believe it's the same as "Bitcoin Days Destroyed" which was explained here: https://bitcoin.stackexchange.com/questions/845/what-are-bitcoin-days-destroyed.
Maybe the reason why Blockchair is calling it "CoinDays" is because it's a multi-coin blockexplorer.
Maybe the reason why Blockchair is calling it "CoinDays" is because it's a multi-coin blockexplorer.
When one checks the TX ID details on blockchair explorer, next to the transaction fee, there is that part that shows coindays destroyed. What does it mean exactly in simple terms?
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