V(t) =PT/M
V(t) = velocity of money
P=price level
T=is the aggregate real value of transactions in a given time frame
M=is the total nominal amount of money in circulation on average in the economy
Thus PT is the total nominal amount of transactions per period
Values of PT and M permit calculation of V(t).
V=PQ/M
V= is the velocity for transactions counting towards national or domestic product.
PQ= is nominal national or domestic product.
Now let's play a game. Who can see what happens if you double the velocity of money while the values of P T or M stay the same. Or double the value of any of the variables for that matter.
Now, I wonder what would happen if you increased the capacity of your network to process transaction by having unbound blocks. I wonder what would happen if say early next year businesses like floatSV, DRIVE markets, tokenized, SBI Holdings, Kronoverse, Square, money button, tonicPOW, weather SV start filling up these bocks.
I wonder if the velocity of money would increase by any significant degree.. I wonder if one could consider all this economic activity some kind of gross national product.. M is basically a constant in bitcoin especially after the halving.
This is really basic economics. This is how you can make predictions about real value for things. It's not based on speculation of a future value, it's based off how much the money is used.
It's really not rocket science to see how him knowing what kind of transactional throughput is coming and when, that he could make this call about the price.