sorry, I wasn't clear. I wasn't asking WHAT velocity of money is, I was asking someone to explain the author's velocity of money argument. i.e. transfering wealth out of btc accelerates the velocity.

q, m, v, and p remain relatively constant in that transaction unless the liquidity event causes a persistent decrease in the price level (no evidence that the current BTC market could support it, but also c.f. above my comments about immature markets and liquidity).

My reading of his argument is that bitcoins primary function will be as a medium of exchange, not as a store of value. Thus when any indiviudal has a significant amount of bitcoins, he will convert them to an asset class that does store value.