Vitalik Buterin claims BTC stock-to-flow model is wrong
Bitcoin Stock to Flow
Modified Date:- Published Date:-Categories: Cryptocurrency
Ethereum co-founder Vitalik Buterin has renewed his attack on bitcoin's stock-to-flow (S2F) price model, dismissing it as "false", "harmful" and "deserving of a joke". The S2F price model, written by crypto analyst PlanB, predicts the future price of bitcoin based on its supply (stock) relative to the number (flow) of coins mined each year, which is held every four years.According to S2F forecasts, bitcoin will trade in the range of US$100,000-110,000 in 2022, although the recent market crash last week pushed BTC below an 18-month low of US$20,000, raising questions about the accuracy of the model. stood up. In an earlier tweet, PlanB acknowledged that the model enjoyed a "good run" for three years (till March 2022). As for the current market, PlanB believes that “either BTC is undervalued and will return soon, or S2F will be less useful in the future”. Just last month, Buterin expressed his admiration for Bitcoin, saying that he would like to see Ethereum achieve the same level of stability. To do so, however, would require significant short-term change and volatility - an apparent paradox that has since passed.
Ethereum, S2F Price Model, Crypto Analyst, BTC Price, BTC Stock