BTC is the sole medium with which blockspace can be purchased within the Bitcoin network (i.e., the only medium in which transaction fees are paid).
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BTC is the sole medium with which blockspace can be purchased within the Bitcoin network (i.e., the only medium in which transaction fees are paid).
[11] = ƒ(blockspaceDemand, feeMarketPressure)
blockspaceDemand — measurement of the computational resources required to process transactions (directly tied to BTC's exchange utility)feeMarketPressure — an abstract reflection of the competitive dynamics of transaction fee bidding (a direct value transfer mechanism)BTC is also used to a certain extent as a peer-to-peer payment medium for goods/services outside the protocol layer. Somewhat uncommonly, this is by design (as per the original whitepaper's statement of the token usage as electronic cash), and as such qualifies as a separate OoV.
[12] = ƒ(merchantAdoption, liquidityDepth)
merchantAdoption — the value-adjusted number of goods/services purchasable exclusively/natively with BTCliquidityDepth — the BTC market depth, measuring the ability to transact at scale without noticeable price slippage