Unknown Aspects of the Stock Flow Model That Can Predict the Bitcoin Price Exactly

Bitcoin has consolidated its position as the dominant cryptocurrency in the world, with a market value of nearly $ 145 billion over the past decade. The success and popularity of Bitcoin has led to many speculations about how its price will move in the future.

For many cryptocurrency users and investors, the stock flow (s2f) model remains a Bitcoin valuation model that takes into account Bitcoin’s scarcity and predicts a possible price trend.

The creator of the model, the popular Bitcoin analyst PlanB, talked about the s2f model and its importance for Bitcoin in the last part of the Off the Chain podcast, and stated that the stock flow model is an important attempt to measure the value of the digital scarcity invention created by Satoshi.

Pointing out the importance of being able to replicate and control the s2f model by others, the analyst said that the only strange thing for the model is the Bitcoin price it predicts:

The model predicts that the Bitcoin price will reach the $ 50,000 to $ 100,000 range after the next half, which triggered the curiosity of why it was so easy to make 10X, which is of course not really possible in your investment. It is also a big wonder why the model works so harmoniously (with Bitcoin price).

“Measures Direct Scarcity As It Is Under”

PlanB claimed that it worked so well, as it measured direct scarcity as below the stock flow model and added:

Another reason why it works very well might be Bitcoin’s much talked about network effects. The network effects of the developers are starting to work on Bitcoin, and more traders are starting to buy and sell something with Bitcoin. The number of investors continues to increase.

For the Bitcoin fans who believe that the true potential of BTC is in the value store status, the s2f model provides sufficient evidence for Bitcoin’s projected price action. PlanB also points out that if the s2f model needs to work, there should be a significant number of HODLs in the ecosystem.

Examining the role of HODLers in the Bitcoin ecosystem and comparing them to loyal shareholders, PlanB said:

You need HODLers to create a high stock flow value. This is like companies that do not sell stocks and destroy the company, preferring very loyal shareholders when there is a crisis or something else.

Continuing with the words that the s2f model takes into account the scarcity of Bitcoin and provides a measurable price model for the future, PlanB continued by noting that the block prize halfway in May will increase the price of Bitcoin.