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Interesting that you mention that. I was wondering that myself. I first pulled it from the article linked in my post, the exact wording can be read as follows:

"V is the velocity of base money, which is surprisingly constant at 10x for a variety of normal people’s currencies."

Upon reading that I did some googling and I found others used that 10x number in other places when talking about digital transactions as well, IE epayments.

You could try plugging in different numbers and see what you come up with. I think the velocity of the dollar is somewhere around 1.4X.

I guess it represents the average turnover per year (yearly average number of transactions per token/unit) and therefore the effective currency fluidity.
Considering that BTC is to large extent used as an investment vehicle rather than actual means of payment I would estimate the V to be smaller than 10 in this case. But your train of thought remains valid nevertheless.