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Are Bitcoin Days Destroyed a measure of hoarding? Sometimes. But just because bitcoins changed addresses doesn't mean they changed hands. Is it also possible to derive velocity of bitcoin (money) from bitcoin days destroyed? Not directly. Although velocity of money and BDD are related, they are not entirely the same. velocity of money is based on a legal ...


7

Neither. The client chooses the best fit of coins for your spending. This is known as the knapsack problem. The coins chosen will be the ones that yield the lowest amount of change, with exceptions for very recent (unconfirmed or newly confirmed) coins. Even when there are multiple solutions that yield the same amount of change, it will not necessarily ...


6

As of June 19 2019, using the following query: bitcoin-indexer=> select reverse_bytes(output_tx.hash_id || output_tx.hash_rest), output.tx_idx, output_tx.current_height, input_tx.current_height, input_tx.current_height - output_tx.current_height from output inner join input on input.output_tx_hash_id = output.tx_hash_id AND input.output_tx_idx = ...


5

Graphing Bitcoin Days Destroyed weights the past dormancy of coins that have been transferred over any chosen period. The histogram of the percentage of Days Destroyed graphs distribution of dormancy over the measured period. The graph is a histogram showing the percentage of total Days Destroyed from the measured period for each block. Thus it is a ...


3

As of 20 May 2020, there is a new record: The UTXO had a value of 50 BTC, and was created in this coinbase transaction, in block 3,654: f38d6f043c070ce9805ee81f46db4d32d0c9f148d62bbfbc0378bc5847c7dc70 The UTXO was then spent in this transaction, sending 40 BTC to one address, and ~10 BTC (less fees) to another address, in block 631,058: ...


3

This strongly depends on what you think makes a financial system healthy. As long as there is no challenge to the core of Bitcoin, distributed no third party controlled transactions, there is no need to worry about any of the technical aspects. Stakeholders are the major problem here, the hashrate distribution being the clearest example. Stakeholder power ...


3

As I explained in another answer, we can not meaningfully use measures of dormancy from P2P currencies in Quantity Theory of Money comparisons relative to GDP (or in Visa's case total Q over the period). I also explained in that linked answer why it is unlikely that Bitcoin would obtain the same velocity multiple of 8 per quarter as with fiat. Expounding, in ...


2

Bitcoin Days destroyed cannot show exactly how many bitcoins are in dormant. An interesting related measurement is called Dormant Bitcoin Chart, which shows the dormancy of all bitcoins.


1

Hoarding Bitcoin Days Destroyed can tell us the percent of total coins are trading over any period of time, to the granularity (resolution) of a day. So for example, we can ask what percent of total coins have traded within the past day, or a specific day, week, month, year, or any period in the past. So it can give us an indication of lower-bound percent ...


1

I think you are viewing the metric incorrectly. The notion of Bitcoin Days Destroyed is not relative to any other standard of measure. Rather, it is the standard of measure. To clarify, there is no "gold standard" for Bitcoin Days Destroyed saying "if all Bitcoins had been spent within X weeks the total would be Y". That just doesn't make any sense. Think ...


1

In other words, a system where coins that have not been spent recently are worth more? I suppose you could do such a thing, but it doesn't seem useful; typically friction in economies is a bad thing. But I imagine you'd price things just like in any other market: supply and demand.


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As for now (years after this question was published), there are metrics discussed and published on several sites trying to achieve that. Basically you would be googling for "fundamental analysis" metrics. Because searching for the health of the underlying product to the traded asset is basically fundamental analysis common in other spheres of trading and it ...


1

The graph is a histogram showing the percentage of total Days Destroyed from the measured period for each block. Thus it is a distribution of dormancy over the period, since block numbers are ascending forward in time. To arrive at the percentage in your example, you need to divide the Days Destroyed for that example block by the total of the Days Destroyed ...


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