Bitcoin’s Stock-to-Flow model not likely to be employed in the future

Market data and charts are key fundamentals that allow investors to analyze potential crypto-assets in the market. And while the crypto-market has been in existence for over a decade, the fact that the industry has been in the mainstream for just a few years makes a constructive study of the market using long-term statistics difficult.

The cryptocurrency market’s inherent volatility allows proponents and enthusiasts to derive their own prediction models on crypto-assets in order to have a better understanding of Bitcoin or the price movement of any other crypto-asset.

The Stock-to-Flow ratio model for Bitcoin has been a popular prediction model over the past year, one that records Bitcoin’s future valuation on the basis of scarcity value. However, according to the S2F model, Bitcoin is projected to cross $50,000 post-2020. This projection has, in turn, led to a mixed reception from the community.

 

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