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Money Velocity  Price  Quantity MV = PQ Equation

The most important equation in monetary economics, the equation of exchange: MV=PQ.  The quantity of money (M) times the rate spent (V for velocity) equals the price of everything bought (P) times the amount bought (Q for quantity). This simple equation is true by definition of any monetary system at all times, so it’s a good tool to figure out what happens when variables change. In bitcoin, M is on a predetermined path, converging to 21m bitcoins. So in terms of the other variables, it’s basically fixed. That leaves V, P, and Q to fluctuate.  Use of state meta data snapshots in a cyclical, reliable method identifying data by organization and by Uniform Resource Name and geo-spatial temporal location prior to data fusion will improve Bitcoin and other economic systems helping to form a eco-economic system of systems re-using Network Centric Warfare / Operation's best practice refined over decades.  

In economics, the equation of exchange:where, for a given time period,

- is the total nominal amount of money in circulation on average in an economy.

- is the velocity of money, that is the average frequency with which a unit of money is spent.

- is the price level.

- is an index of real expenditures (on newly produced goods and services). 

 

Decentralized data feed in financial contracts for difference via a protocol called "SchellingCoin". SchellingCoin works as follows: N parties all put into the system the value of a given datum (e.g. the ETH/USD price), the values are sorted, and everyone between the 25th and 75th percentile gets one token as a reward. Everyone has the incentive to provide the answer that everyone else will provide, and the only value that a large number of players can realistically agree on is the obvious default: the truth. This creates a decentralized protocol that can theoretically provide any number of values, including the ETH/USD price, the temperature in Berlin or even the result of a particular hard computation.   Now, take the Shelling point process and merge it with the University of Bologna Italy / Hungary's firefly inspired algorithm where seemingly random fireflies strive towards synchronization where the firefly pulse is matched to the closest heartbeat interval cycle: http://www.sawconcepts.com/id48.html. Wall Street Stock Exchanges must solve the problem where High Frequency Trade transactions far exceed the ability of a regulatory, monitoring 3rd party's (DCCC) ability to record, verify and validate transactions -- a computational job that the Bitcoin Blockchain is being used to solve.