Stock to flow ratio bitcoin 2020

$ $1 $10 $ $1, This model treats Bitcoin as being comparable to commodities such as gold, silver or On the above chart price is overlaid on top of the stock-to-flow ratio line. Applied to Bitcoin, it hinges on the fact that its inflation or flow will be getting progressively smaller, while the stock-to-flow ratio will be getting.

Don't believe it, warns Bloomberg's markets editor.

Dollar-Denominated Portfolios

Joe Weisenthal says scarcity is not an influential factor in pricing bitcoin in the future. People only need to bid up the price of existing bitcoin to make it more expensive, he argues. Then voila. The math is see more. Dollar-Denominated Portfolios Bitcoin is not a base asset to measure global portfolios; the US dollar is.

So it is more likely for investors to denominate their cryptocurrency holdings in dollars.

Why the Stock-to-Flow Bitcoin Valuation Model Is Wrong

Weisenthal said the price of bitcoin would rise only because people want to weight more of stock to flow ratio bitcoin 2020 global portfolio to it.

For stock to flow ratio bitcoin 2020, the market prices gold based on its relationship with the dollar. An investor who wants to migrate a portion of its gold portfolio to bitcoin does it within the context of its overall investment portfolio; the number of bitcoin he buys does not matter to him.

Weisenthal, the S2F model believers tend to compare bitcoin with non-consumable commodity assets learn more here Gold and Silver.

The core argument then falls on whether or not bitcoin behaves like stock to flow ratio bitcoin 2020 scarce non-consumable commodity.

Famous gold bull Peter Schiff thinks it does not. Excerpts from stock to flow ratio bitcoin 2020 May blog post: Scarcity is not enough.

Bitcoin's Stock-To-Flow Model Is Still On Track

stock to flow ratio bitcoin 2020 There must also be a real value. The is also an infinite supply of cryptocurrencies. So they are not really scarce at all. The argument is simple: What if nobody wants to hold bitcoin in the long-term? Both based on fancy looking statistical models more so the latter.

Bitcoin's Stock To Flow Model (S2F), A Deep Dive!

Both are flawed. Doubt whoever believes in these extremes will change coins ph bitcoin trading 2020 minds.

Bitcoin SF Model

The mind believes what it wants to believe. The model remains If you see a breach of our Code of Ethics or find a factual, spelling, or grammar error, please contact us.

He is an information technology graduate, a cryptography junkie, a filmmaking enthusiast, and an avid reader of Jon Erickson, Stock to flow ratio bitcoin 2020 Christie, JK Rowling, and Isaac Asimov.

• 15 Comments