[tpeng]

A higher money velocity => lower BTC/USD, but yes, the current price implies a huge future growth of the bitcoin economy. This is what sam is saying and I agree. I happen to think that we will not see that growth/adoption, but that is a different question.

[im3w1l]

Oops, yeah, I meant the other way around.

[tpeng]

There's no obvious reason why BTC velocity should go lower than USD velocity. If anything, its electronic nature and potential for fast settlement times should indicate a much higher velocity than USD M2.

[im3w1l]

>Note that sam's point about merchants immediately converting BTC back to USD serves to increase the money velocity (perhaps by >10x).

If this changed, it could at least get closer to the velocity of usd.