The system Payment revolution

Economic model
What is a
currency worth?
http://bit.ly/2Qimmjo

Co-authored with Prof. Lawrence H. White, expert in Monetary Theory
Every Q network member wants to know how valuable Qs can become. If Initiative Q succeeds in creating a world leading payment network, it is expected that all Qs reserved today for members will eventually be granted at a value of roughly one US dollar per Q.

The following economic model explains the reasoning behind this estimate and the mechanisms used to maintain the long-term value of Qs along with the growth of the Q network.

divider-flipped
Value: the Equation of Exchange
The value of a currency is affected by multiple factors. The equation of exchange introduces the “velocity of money”, defined as the total expenditures (or income) in that currency, divided by the money supply (the total amount of currency in circulation). The world’s total economic activity is around 100 trillion US dollars, and the total amount of money in the world is between 40 and 90 trillion dollars (depending on the definition of money). This gives a global average velocity of money of around 2, which indicates that each unit of currency changes hands roughly twice a year. In other words, at any given time people hold money balances equal to around half a year’s worth of income (or purchases).
economic-model-1
Therefore, in order to estimate the value of all Qs, we need to estimate the volume of transactions on the network as well as the velocity of money.
http://bit.ly/2Qimmjo