1/5 I'm working on a M1 and/or M2 corrected version of the #Bitcoin Price Temperature (BPT) and am weighing on which version I'll focus on primarily, could use some feedback 🙏

I'll summarize my own thoughts in this 🧵👇

Poll: Which money supply version would you correct for?
2/5 Let's look at the definitions of M1 and M2 first. On @Investopedia, they are described as in the attached figures.

For completeness, the source URL's:
- M1: https://www.investopedia.com/terms/m/m1.asp 
- M2: https://www.investopedia.com/terms/m/m2.asp 

Also useful, by @khanacademy: https://www.khanacademy.org/economics-finance-domain/ap-macroeconomics/ap-financial-sector/definition-measurement-and-functions-of-money-ap/v/money-supply-m0-m1-and-m2
2/5 Let's look at the definitions of M1 and M2 first. On @Investopedia, they are described as in the attached figures.For completeness, the source URL's:- M1: https://www.investopedia.com/terms/m/m1.asp - M2: https://www.investopedia.com/terms/m/m2.asp Also useful, by @khanacademy: https://www.khanacademy.org/economics-finance-domain/ap-macroeconomics/ap-financial-sector/definition-measurement-and-functions-of-money-ap/v/money-supply-m0-m1-and-m2
2/5 Let's look at the definitions of M1 and M2 first. On @Investopedia, they are described as in the attached figures.For completeness, the source URL's:- M1: https://www.investopedia.com/terms/m/m1.asp - M2: https://www.investopedia.com/terms/m/m2.asp Also useful, by @khanacademy: https://www.khanacademy.org/economics-finance-domain/ap-macroeconomics/ap-financial-sector/definition-measurement-and-functions-of-money-ap/v/money-supply-m0-m1-and-m2
3/5 The reason I'm considering correcting for M1 or M2 monetary inflation is that both absolutely exploded in 2020, potentially influencing the #Bitcoin price and thus the true relative BPT values if the assumption that this monetary inflation may cause asset inflation is correct
3/5 The reason I'm considering correcting for M1 or M2 monetary inflation is that both absolutely exploded in 2020, potentially influencing the #Bitcoin price and thus the true relative BPT values if the assumption that this monetary inflation may cause asset inflation is correct
3/5 The reason I'm considering correcting for M1 or M2 monetary inflation is that both absolutely exploded in 2020, potentially influencing the #Bitcoin price and thus the true relative BPT values if the assumption that this monetary inflation may cause asset inflation is correct
4/5 That said, I feel like I should focus on the broader definition of potentially investable money that circulates in the economy, which is M2

This aligns with the last point on the @investopedia M2 page that states M2 is watched by central banks as well for policy decisions
5/5 I think that I am fairly confident in focussing on M2 here for the rationale described above, but would love to get some feedback or counter-arguments

If you have a clear opinion on this and could answer the poll (in tweet 1) or comment below it would be much appreciated! 🙏
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