Bitcoin Stock Model | Vitalik Buterin Thoughts

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The stock to flow model, this is actually the first time I have come across this phrase, so I decided to carry out some research after I read the co-founder of etherum view about it amidst the bear season which is regarded as crypto winter. The S2F which is also known as stock to flow model was developed by a crypto analyst which is said to be popular in the crypto space which goes by the name PlanB on Twitter. The model predicted the future price of bitcoin basically on two things which is the (stockpiles) the size of its existing reserve and (flow) market supply of bitcoin.
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So few months down the line of it’s prediction that the primary crypto currency Bitcoin would hit a new all time high by December of about $100k, this didn’t happen has market price regression started right from it’s few months after it’s prediction. Seen the recent crypto winter which bitcoin has gone below $20k, the co-founder of Ethereum Vitalik Buterin threw shades at this model in he’s tweet;

“ Stock-to-flow is really not looking good now. I know it’s impolite to gloat and all that, but I think financial models that give people a false sense of certainty and predestination that number-will-go-up are harmful and deserve all the mockery they get.”

PlanB who later responded also in a tweet saying that;

After a crash aome people are looking for scapegoats for their failed projects or wrong investment decisions. Not only newbies but als “leaders” fall victim to blaming others and playing the victim. Remember those who blame others and those who stand strong after a crash.

See this tweets, just seem like two cry babies who are quarreling over a spilled milk. With my few months in the space, I come to realize that the crypto currency market trading prices are on predictable to some certain extent due to its volatility. I have listened to analysts and bitcoin forerunners forecasting it’s new all time high and failed woefully. From the recent market price it seems Bitcoin is trying to hold the support level of $20,000 as of writing its currently trading $21,208 does it seems like we are about to witness a bullish run anytime soon?.
Also don’t forget in contributing to the pHBD-USDC pool, and from statistics it looks like we will be able to archive the set target in a few months, let’s do our own part in growing the pHBD-USDC liquidity.

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