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News

Vitalik Buterin Argues With PlanB Over The Stock-to-Flow Model

June 21, 2022 - Around 2 mins mins to read
It seems that during the period when the market is falling into a “hibernation” cycle, Ethereum founder Vitalik Buterin has become more active with the community as he continuously makes comments on all topics related to the money industry. coding, this time about PlanB’s Stock-to-Flow (S2F).
Vitalik Buterin Argues With PlanB Over The Stock-to-Flow Model

Most recently on June 21, the Ethereum founder directly criticized the controversial Stock-to-Flow (S2F) model popularized by PlanB, who was confident Bitcoin would hit $100,000 by the end of 2021 when applying this analysis to the price of BTC. However, reality shows that Bitcoin has not lived up to PlanB’s expectations.

The S2F model is based on quantifying the price of an asset because of its scarcity and is mainly used for common metals such as gold and silver. So PlanB has also taken advantage of Bitcoin’s limited supply of 21 million units to reflect that the price of BTC will continue to climb steadily and impressively with approximately ten times return after each repeated bull cycle after four years.

However, the key problem with the S2F model that many critics have pointed to is the one-way estimate, where S2F only takes into account the supply side of BTC while rejecting assumptions from macro factors, an unexpected breakdown occurs in the market or a decrease in user demand.

Surprisingly, not long after that, PlanB responded to Vitalik Buterin’s criticisms with an equally harsh attitude.

Perhaps S2F can also be applied in the story of market fluctuations according to supply and demand, but unexpected events like Terra or the Fed are very difficult to predict. However, it must also be noted that BTC has also recovered from the most recent typical crisis, the COVID-19 pandemic.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

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Harold

CoinCu News

#Bitcoin

BTC

ETH

fed

PlanB

S2F

Stock-to-Flow

Terra

Vitalik Buterin

Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
News

Vitalik Buterin Argues With PlanB Over The Stock-to-Flow Model

It seems that during the period when the market is falling into a “hibernation” cycle, Ethereum founder Vitalik Buterin has become more active with the community as he continuously makes comments on all topics related to the money industry. coding, this time about PlanB’s Stock-to-Flow (S2F).
Vitalik Buterin Argues With PlanB Over The Stock-to-Flow Model

Most recently on June 21, the Ethereum founder directly criticized the controversial Stock-to-Flow (S2F) model popularized by PlanB, who was confident Bitcoin would hit $100,000 by the end of 2021 when applying this analysis to the price of BTC. However, reality shows that Bitcoin has not lived up to PlanB’s expectations.

The S2F model is based on quantifying the price of an asset because of its scarcity and is mainly used for common metals such as gold and silver. So PlanB has also taken advantage of Bitcoin’s limited supply of 21 million units to reflect that the price of BTC will continue to climb steadily and impressively with approximately ten times return after each repeated bull cycle after four years.

However, the key problem with the S2F model that many critics have pointed to is the one-way estimate, where S2F only takes into account the supply side of BTC while rejecting assumptions from macro factors, an unexpected breakdown occurs in the market or a decrease in user demand.

Surprisingly, not long after that, PlanB responded to Vitalik Buterin’s criticisms with an equally harsh attitude.

Perhaps S2F can also be applied in the story of market fluctuations according to supply and demand, but unexpected events like Terra or the Fed are very difficult to predict. However, it must also be noted that BTC has also recovered from the most recent typical crisis, the COVID-19 pandemic.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Harold

CoinCu News