🔗Blockchain Fundamentals - Bitcoin Velocity by Cryptorhythms
🔗Blockchain Fundamentals - Bitcoin Velocity by Cryptorhythms
Description
The velocity of money is the rate at which money is exchanged in an economy. It is the number of times that money moves from one transaction to another. It also refers to how much a unit of currency is used in a given period of time. Simply put, it's the rate at which people spend currency. The velocity of money is usually measured as a ratio of gross national product (GNP) to a country's total supply of money, in traditional markets.
Here is the formula proposed by twitter user PositiveCrypto, implemented for you here on tradingview.
How does it relate to Bitcoin?
Is bitcoin trending towards savings or payments? This can help you decide. It is similar to Bitcoin Network Momentum, except this takes into account bitcoins increasing supply.
Low velocity implies HODLing and Speculation on future value. People looking at bitcoin as a longer term investment.
Higher velocity indicates currency changing hands faster. Perhaps as an indication of adoption pushing bitcoin towards a payment/transaction usage.
Opinions and Hypothesis
In the midst of the last bear market we saw velocity spike, perhaps as people gave up on investments and starting using it for payments.
As the 2017 bull run sucked in more buyers at higher and higher retail prices, velocity decreased, perhaps as those people did not want to sell at a loss.
As we entered the big dip in Nov 2018 velocity began increasing, as some capitulated and others were drawn into the market by lower prices.
Extras
I added in additional functionality so you can change the moving average from SMA to a few other choices (more MA's to choose from coming soon in future update). I also added a variable to change the length of said MA to your desired value so you may experiment. You can also chose to display as a line or area plot depending on preference.
👍 Enjoying this indicator or find it useful? Please give me a like and follow! I post crypto analysis, price action strategies and free indicators regularly.
💬 Questions? Comments? Want to get access to an entire suite of proven trading indicators? Come visit us on telegram and chat, or just soak up some knowledge. We make timely posts about the market, news, and strategy everyday. Our community isn't open only to subscribers - everyone is welcome to join.
For Trialers & Chat: t.me/cryptorhythms
Description
The velocity of money is the rate at which money is exchanged in an economy. It is the number of times that money moves from one transaction to another. It also refers to how much a unit of currency is used in a given period of time. Simply put, it's the rate at which people spend currency. The velocity of money is usually measured as a ratio of gross national product (GNP) to a country's total supply of money, in traditional markets.
Here is the formula proposed by twitter user PositiveCrypto, implemented for you here on tradingview.
How does it relate to Bitcoin?
Is bitcoin trending towards savings or payments? This can help you decide. It is similar to Bitcoin Network Momentum, except this takes into account bitcoins increasing supply.
Low velocity implies HODLing and Speculation on future value. People looking at bitcoin as a longer term investment.
Higher velocity indicates currency changing hands faster. Perhaps as an indication of adoption pushing bitcoin towards a payment/transaction usage.
Opinions and Hypothesis
In the midst of the last bear market we saw velocity spike, perhaps as people gave up on investments and starting using it for payments.
As the 2017 bull run sucked in more buyers at higher and higher retail prices, velocity decreased, perhaps as those people did not want to sell at a loss.
As we entered the big dip in Nov 2018 velocity began increasing, as some capitulated and others were drawn into the market by lower prices.
Extras
I added in additional functionality so you can change the moving average from SMA to a few other choices (more MA's to choose from coming soon in future update). I also added a variable to change the length of said MA to your desired value so you may experiment. You can also chose to display as a line or area plot depending on preference.
👍 Enjoying this indicator or find it useful? Please give me a like and follow! I post crypto analysis, price action strategies and free indicators regularly.
💬 Questions? Comments? Want to get access to an entire suite of proven trading indicators? Come visit us on telegram and chat, or just soak up some knowledge. We make timely posts about the market, news, and strategy everyday. Our community isn't open only to subscribers - everyone is welcome to join.
For Trialers & Chat: t.me/cryptorhythms
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Fixed error in input config