velocity of money (number of times each unit turns over on average during the period in question)
Doesn't this equation assume that all payments are made by exchanging the actual currency (banknotes in the case of dollars, blockchain transaction for BTC)?
How does one define V when most dollar payments are made by moving numbers from one bank ledger to another? Wouldn't the same issue arise with BTC?
(Sorry for the stupid question, but when BTC are traded at an exchange, is each transaction immediately realized on the blockchain, or are transactions tracked in internal accounts, to be combined and realized at a later time?)
V can be read from the blockchain.
Er, sorry again, what is V now for bitcoins? How is it expected to change as PQ increases?