1/ This article on velocity in cryptocurrencies misses a deeper problem: since token price is inversely proportional to velocity, token holder incentive is to *decrease* velocity; ie keep txs slow.https://www.coindesk.com/blockchain-token-velocity-problem/ …
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6/ This makes investing in tokens for any non store-of-value a sketchy proposition. An effective enabler of exchange (financial, storage, CPU, bandwidth, whatever) must be fast & low-friction, which is opposed to token appreciation.
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@AriDavidPaul, here's a more detailed explanation by@cburniske of how velocity relates to price for cryptocurrency using the equation of exchange:https://medium.com/@cburniske/cryptoasset-valuations-ac83479ffca7 …Show this thread
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