If you were awake in your college economics class you might recall Milton Friedman’s classic theory: The quantity theory of money. Essentially, Friedman argued that the general price level is directly proportional to the amount of money in circulation We can apply Friedmans logic to bitcoin and use it as a starting point for valuation. The root of understanding the quantity theory of money is the equation of exchange, MV=PQ.
Ok, what does the formula mean again? MV=PQ.
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