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30 sats \ 2 replies \ @Undisciplined 22 Mar \ on: MV=PY model of Bitcoin value--what do you think? bitcoin
What? You were making good posts before I even got here!
Two thoughts
  1. Velocity should be higher, other things equal, since transactions costs will be lower, right?
  2. You're completely overlooking demand from savings, I think.
If bitcoin is the best store of value, then it should absorb an appreciable share of the monetary premia from other assets, which only enjoy those premia because fiat is so bad as a SoV.
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31 sats \ 1 reply \ @SimpleStacker OP 22 Mar
Yep I came to stacker.news pretty early but didn't become more active till recently
As for the demand from savings, how would it show up in this equation? Coz I thought this equation was an accounting identity. Maybe it means that the PY shouldn't just count global gdp but savings demand?
I'm no monetary economist so pretty noobish at these kinds of questions
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30 sats \ 0 replies \ @Undisciplined 22 Mar
Ha! I didn't know either. Just a couple of non-monetary economists groping around in the dark.
I was thinking it may show up as radically lower velocity, as a huge fraction will be at 0, but I also wondered if it would enter into PY somehow.
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