| > What I was wondering was: is there a better number? e.g., is there a way to calculate the amount of USD put into a cryptocurrency across a timeframe? Velocity is a very important factor that critics of asset-wealth ignore. When it comes to criticizing crypto-assets specifically, people just turn their brain off or are completely ignorant to how assets they respect work in order to hold crypto-assets up to a fictional higher standard. but even when articulating their standard its like "do they even know what they're talking about?" for example, when comparing crypto assets to currencies, due to the "cryptocurrency" misnomer and skeumorph in the name, the illiquidity and relative few transactions in comparison to the marketcap seems like an important area to focus on, to them, while completely missing that currencies are broken down into 4 segments for this exact same reason. M1 being that tiny sliver used for transactions with M2 and beyond being illiquid allocations of the currency, the similarity of behavior ironically bolsters the currency aspect of crypto in what was supposed to be a criticism. Many of these criticisms focus on the conversion to a fiat currency, and neglect the ability and reality of acquiring goods and services and investments directly with the crypto. I see something like this over and over again. These all factor into how one would go about valuing any particular asset. If a replacement for marketcap was sought after. But "dollars in over time" is not good enough, as it misses how liquidity can change at any moment, and misses the velocity of activity within any one crypto economy. |