Well that is where it gets complicated. Lets take an example of a 500 Bitcoin wallet to wallet transfer that is outside the exchanges. It won't affect the price, which is calculated from exchange traffic, but it may affect sentiment if it is reported by the whale watchers. Now what is that transaction? It could be a whale moving it between wallets for tax purposes, or it could be a withdrawal from a purchasing service. Perhaps it is a whale who leaks the info, and hopes the market will drop after he has shorted Bitcoin. You can't even say that it isn't part of he commercial market, as it may have been used to pay for an oil consignment for example.
Whale reports are often made to mislead the market, and to reinforce a trend. Don't forget that the 500 coin example has a buyer and a seller. So it may be reported as whales dumping Bitcoin by a guy with a short position, or as institutions rushing to buy Bitcoin by a guy with a long position.
Topic: [Merits again] Discuss the velocity of Bitcoin - page 3. (Read 1077 times)
Bitcoin can only be considered as the gold of the cryptocurrency market. It is very difficult to be included as a trading currency because the reason is simple, bitcoin is slow and high transaction fees are the limitations of bitcoin. In addition, governments do not like a currency they cannot manage, so it is difficult for Bitcoin to become a global currency.
In my country Bitcoin and other cryptocurrencies are not considered as a currency but they are considered as speculative assets. Bitcoin transactions are still taxed as normal goods.
In my country Bitcoin and other cryptocurrencies are not considered as a currency but they are considered as speculative assets. Bitcoin transactions are still taxed as normal goods.
The scale is exponential for some unclear reason, maybe to make it fit nicely on the M2 line?
But the main flaw in this is that Bitcoin transaction volume doesn't reflect actual velocity as defined under the chart ("how quickly money is circulating in the economy"). Someone could be mixing coins, or moving them between cold/hot wallets, or doing something else that doesn't have any correlation with Bitcoin economy, adoption etc. It might have some correlation with transaction fees but even that is not so much important for larger transactions.
But the main flaw in this is that Bitcoin transaction volume doesn't reflect actual velocity as defined under the chart ("how quickly money is circulating in the economy"). Someone could be mixing coins, or moving them between cold/hot wallets, or doing something else that doesn't have any correlation with Bitcoin economy, adoption etc. It might have some correlation with transaction fees but even that is not so much important for larger transactions.
It's all really rather subjective, and even more complex when you consider the velocity as part of a world economy. For example, it may be that in the UK Bitcoin is not used for purchases, but is used as a store of wealth. In my opinion, Bitcoin held in investment wallets is not part of the available currency, A country such as Venezuela may use Bitcoin for everyday transactions, and in this case most of the wallets will contain available currency, Coins spent may go into a wallet, and these cons may be spent again fairly quickly. There are several categories of wallet that will not be a part of the market economy in my opinion. These include the unallocated contents of the reward pool which was created when the genesis block was laid. Miners reserve coins, Coins held by long term HODLers and other investors. Loan securities, Lost or unrecoverable wallet contents. Coins burnt by mistake. Some others may be open for discussion. For example, are the deposits made by users of the lightning network a part of the available currency? What about ungeared trading profits, and what about the profits taken from a successful geared trade.
I think that changes in velocity are quite important indicators for long term investors - one year or more. I'd be interested to hear other opinions, as Bitcoin is such a multi-faceted currency, that it difficult to predict future uses and value.
I think that changes in velocity are quite important indicators for long term investors - one year or more. I'd be interested to hear other opinions, as Bitcoin is such a multi-faceted currency, that it difficult to predict future uses and value.
The term is fairly new to me. I've been studying and gaining insight on the crypto industry and this "velocity" thing sure struck on my mind. As a member said above, we really feel nervous talking about these big subjects due to lack of proper knowledge. Well, I've found what I'll read about today. Bitcoin velocity it is. 
I have to say this I am not much of a technical analysts and am also not very good at chart reading. So this reply is all about my little understanding and it's subjected to correction.
With the definition of velocity by the site
"velocity is the measure of how quickly money is circulating in the economy" source https://charts.woobull.com/bitcoin-velocity/
With that in mind velocity of bitcoin can be the "measure of how swift bitcoin is circulating a nations economy.
Change in velocity of bitcoin will impact bitcoin and bitcoin adaptation using my country to site an example the amount of bitcoin circulation in my country although must bitcoin holders are using it as an investment asset and not for a medium of purchasing goods or items, this will make the circulation of bitcoin not as quick or swift as it should be and it would not help in the promotion of the adoption of bitcoin.
If my country can often use bitcoin in daily needs purchase velocity of bitcoin would be increased circulating more bitcoin in the nation economy which will foster the rise of bitcoin adoption in the nation.
I always have in mind about creating a fast bitcoin to fiat conversation and trading center am still thinking about it, more like a place where you can come and get your bitcoin currency converted into fiat or get goods for bitcoin , I know it sounds like an exchange in a way but this is offline and it's for axis close to the center. This would encourage more rising of bitcoin community project
With the definition of velocity by the site
"velocity is the measure of how quickly money is circulating in the economy" source https://charts.woobull.com/bitcoin-velocity/
With that in mind velocity of bitcoin can be the "measure of how swift bitcoin is circulating a nations economy.
Change in velocity of bitcoin will impact bitcoin and bitcoin adaptation using my country to site an example the amount of bitcoin circulation in my country although must bitcoin holders are using it as an investment asset and not for a medium of purchasing goods or items, this will make the circulation of bitcoin not as quick or swift as it should be and it would not help in the promotion of the adoption of bitcoin.
If my country can often use bitcoin in daily needs purchase velocity of bitcoin would be increased circulating more bitcoin in the nation economy which will foster the rise of bitcoin adoption in the nation.
I always have in mind about creating a fast bitcoin to fiat conversation and trading center am still thinking about it, more like a place where you can come and get your bitcoin currency converted into fiat or get goods for bitcoin , I know it sounds like an exchange in a way but this is offline and it's for axis close to the center. This would encourage more rising of bitcoin community project
I must admit that before you made this thread, i have never heared about bitcoin velocity, so unfortunately i can't discuss this topic yet, but i thank you for raising this question as i learned something new today, and i will read more about it.
I am pretty sure that most of others beginners ( and not just them) don't feel confident enough talking about something like this so that might be the reason why you didn't get any responses yet.
I am pretty sure that most of others beginners ( and not just them) don't feel confident enough talking about something like this so that might be the reason why you didn't get any responses yet.
Here is a definition of the velocity of Bitcoin and a comparison with the M1 and M2 US dollar money stock.
https://charts.woobull.com/bitcoin-velocity/
Discuss the impact of changes in velocity on the price of Bitcoin, and the effect that it can have on the acceptance of Bitcoin as a global currency. I appreciate that opinions will be subjective, and may vary from country to country, so pitch in with your opinions. Especially if you can relate it to purchase habits in your own country.
https://charts.woobull.com/bitcoin-velocity/
Discuss the impact of changes in velocity on the price of Bitcoin, and the effect that it can have on the acceptance of Bitcoin as a global currency. I appreciate that opinions will be subjective, and may vary from country to country, so pitch in with your opinions. Especially if you can relate it to purchase habits in your own country.
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