oda.krell
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May 31, 2014, 08:47:33 PM

Anyway, despite agreeing above with Peter R.'s observation that we don't need an increase in USD volume by factor x to support a price increase of factor x

Didn't Peter say "trade volume measured in BTC"? Maybe I'm looking at the wrong observation.

The volume measured in USD is something else entirely.

This is why I asked about your confusing statement earlier.

Apologies another time for my confusing phrasing. In your quote of me above, I refer to 'fiat volume', independent of what exact fiat currency the respective exchange trades with.

And I was refering to this statement:

One could argue that Coase Theorem would suggest that trade volume measured in BTC should decrease as the distribution of bitcoins becomes more efficient (e.g., as time goes on or as adoption continues).  

If $volume would indeed be required to increase linearly with price, we would expect to see constant BTCvolume. We don't: BTCvolume gently declines over time. And I agree with Peter that this is only to be expected.


The other time when I mentioned "USD", I meant BTCvolume on those exchanges that trade against USD in particular. In other words, I dismiss Euro and CNY in the analysis.