[kobeya]

Mediums of exchange need to encourage usage, not hoarding.

[nsomaru]

Here's an interesting thought: you need a certain amount of liquidity to overcome the liquidity premium (https://www.investopedia.com/terms/l/liquiditypremium.asp). However, if the velocity of your asset is too high (nobody has incentive to HODL), then your asset becomes a medium of exchange because nobody wants to hold it due to price risk relative to fiat.

So the best digital currency is one that is valuable to be _held_ but still has high transaction counts.

The article that stimulated my thoughts on the matter: https://docs.google.com/document/d/1-ix9BDmGie8tPAwrfRKqe9CN...

[kobeya]

Do you mean something other than velocity? It doesn’t make sense I’m hat context. (I’m not opening a google doc for security reasons).

[nsomaru]

The article is great and gives context. Maybe use a service like Pocket or a proxy to open the link?

[kobeya]

Velocity is how quickly money changes hands. Did you mean volatility?