So determining the value of bitcoin is not the question at stake here.

Suppose there's a new bitcoin with a production algorithm that's tied to the feedback rule proposed by McCallum and adjusts according to a datafeed of Nominal GDP. http://en.wikipedia.org/wiki/McCallum_rule

Part of the feedback rule linked above is the variable of Velocity. It's pretty straightforward to calculate it. http://en.wikipedia.org/wiki/Velocity_of_money

There are other threads such as This one and This one too that ask similar questions, but debate over the actual solution.

Can anyone provide a straightforward answer? Velocity will have to be calculated in a way other than simple bitcoin days destroyed since the velocity figure from this calculation would be far too high if actors transfer between personal wallets.

edit: topic=46241.0 <-- thread on bitcointalk discussing velocity as well. (Won't let me link directly)

1 Answer 1


I don't see how this can be possible. Obviously you can look at the block chain to see the transactions that occurred, but since addresses are anonymous, there's no way to tell whether a given transaction transferred coins to a new owner (which should count toward velocity) or to an address belonging to the same person (which should not).

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service and acknowledge you have read our privacy policy.

Not the answer you're looking for? Browse other questions tagged or ask your own question.