Can A Theoretical Value Be Placed On Bitcoin Based On Daily Velocity?

Confidence will likely drive the value of Bitcoins. Transactions in the block chain do not always represent an actual economic trade. Wallets routinely re-assign the remainder of a coin to a new private key.  It is very hard to determine what the transaction is and what the change is. It is not necessary to care about the proportion of currency circulating, just the average velocity. A lower velocity means a higher price for Bitcoins.

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