Are there any statistics about circular BTC economics? Especially in El Salvador...


I would guess that some ministry in El Salvador must be examining how long BTC accepted for goods and services avoid exchanges -- a small biz owner decides to hold his coins not as an investment or exclusively so but because he has his own vendors which accept BTC.

Numbers about this I think are incredibly important and Bukele is in a position to understand this sort of thing happening within his country.

Circulating Bitcoins, that never need to go to exchanges, will affect price as much as lost coins, perhaps even more since lost coins can always be found -- wallets are examined and if dormant for years it is a fair assumption that the keys have been lost, etc.

But it seems to me that circulating coins will snowball as a greater variety and number of vendors accepting BTC increases. I am sure that is one reason every country like ES welcomes fellow countries adopting the same policy towards Bitcoin.

(Note that even if BTC will eventually be exchanged for dollars, etc., holding them longer still has a big effect on coins available for trading. Exchanges scare me a lot and one clear reason is that we know for a fact that coins can be sold that the exchange does not even own -- we just don't know how widespread this is but, Holy Cow, what a temptation! That is why when an exchange shuts down, while scary at first, it is actually tremendously good for BTC as is self-custody which is of course encouraged by such shutdowns.)

But I have seen no article about this subject -- would be a great read.

If Bukele does have these kind of insights into BTC usage within ES, next time he buys I would take that as a lot more significant than some trader's prediction about price -- Bukele may really know something almost no one else does.