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/ …
Velocity increase = token price *decrease*. More velocity means the same demand of use for exchange is met by fewer tokens, this shifts demand curve down, which decreases price and quantity.
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I’ve heard the argument -usually from those planning an ICO - that velocity (meaning daily transaction volume) increasing will lead to an increase in the value of a particular token. It’s just not based in anything in reality.
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Velocity in monetarism is related to, but not the same as transaction volume.
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Ah I may have been subject to people misusing the term.
End of conversation
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