Consider the socalled Quantity Theory of Money equation: (1) P - Y = M -V So that the level of nominal income (nominal GDP) equals the amount of money in circulation, M, multiplied by the velocity of money (rate of turnover of money in circulation), V. Now suppose that the world is more complicated than the above equation such that: There is technological growth, t, that increases the velocity of circulation of money, V. There is a new medium of exchange called Bitcoin, B, which circulates with money, so that total money in circulation is defined by M = (M0 + B), where M0 is the stock of money in circulation. Bitcoin's value is inversely related to the value of money, M0, after some point l\\7[, in some fixed proportion (1/(1), and positively related to the technology growth such that B = (M0 1'71). In short, the amount of B in circulation rises as money in circulation, M0, exceeds the amount consistent with no (or stable) inflation, IV]. And, if M0 = NI then B = 0. NB: a > 0. The money in circulation, M\