1/ Per the analysis below, #bitcoin’s velocity thus far in 2018 has been ~3, about half that of 2016 and 2017.
2/ While a drop in velocity may seem problematic, it’s actually what you’d expect from a *reserve currency.*
3/ With a reserve currency, as confidence falls market wide more people will hold onto the reserve asset (in this case, #bitcoin), dropping its velocity.
4/ Non-reserve currencies tend to be the opposite: as confidence falls, velocity accelerates as people try to get rid of the asset before it loses more value.
