The Best Economic Metric of All

[benjamindees]

Velocity of money is the frequency with which a unit of money is spent on new goods and services.   It is a far better indicator of economic activity than GDP, consumer prices, the stock market, or sales of men’s underwear (which Greenspan was fond of ogling).

http://www.zerohedge.com/news/guest-post-shhhh%E2%80%A6-it%E2%80%99s-even-worse-great-depression

In just four short years, our “enlightened” policy-makers have slowed money velocity to depths never seen in the Great Depression.

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[Stephen Gornick]

Velocity of money is the frequency with which a unit of money is spent on new goods and services.   It is a far better indicator of economic activity than GDP, consumer prices, the stock market, or sales of men’s underwear (which Greenspan was fond of ogling).

That could easily be plotted with bitcoin as well, but it wouldn't show much.

Here's the total output.  So yesterday was the record, 9.6 million coins were in transactions  (so out of 9.7 million coins issued there was nearly a 100% daily velocity.)



 - http://blockchain.info/charts/output-volume?showDataPoints=true&timespan=all


The reason this doesn't mean much is there wasn't necessarily any economic activity occurring.  Mixing coins just switches which pocket the coin lands in.

[Yuhfhrh]

O.O

[BlackPrapor]

I think in light of info on that chart, it would be interesting to see a world VoM chart, for all currencies. That should help a lot to see if the world perhaps just moved shifted to another medium of exchange....not bitcoin, lol...but wait...

[Oinsane1]

with enough velocity... we could all share one dollar bill?...