A Primer on Exchange Rate Misalignment (Updated)
Bitcoin seems to be a fair exchange rate mechanism, how does it work?
They create a slight channel packing problem causing measurable (and priced) queues to appear. Those queues are the axes of symmetry by which channel space is allocated, and equilibrium conditions become a spectral coloring problem.
When they have queues for exchange, the system always works to equalize those queues, short, medium and long term. Hence, each currency in the queue will, at equilibrium, have a distribution of transactions that mirror the distribution of net real goods transactions. (Theory of ENothing, think of tree trunk is round, a packed channel so the branch and root directed graphs are integrable (summable to a bounded error).
When they have queues for exchange, the system always works to equalize those queues, short, medium and long term. Hence, each currency in the queue will, at equilibrium, have a distribution of transactions that mirror the distribution of net real goods transactions. (Theory of ENothing, think of tree trunk is round, a packed channel so the branch and root directed graphs are integrable (summable to a bounded error).
And at this point, I simple refer to the equivalence of channel packing and queuing theory. Measure the bitcoin queues on a per-currency basis. That stat, if you can grab is, is actually quite valuable.
No comments:
Post a Comment