Bitcoin price should be 2x higher according to stock-to-flow model
Bitcoin (BTC) is usually considered a digital commodity, with strong economic fundamentals to be a long-term Store of Value (SoV) due to having a programmed and limited supply inflation through mining, that is halved every four years. Interestingly, the stock-to-flow model used by economists to evaluate gold, silver, platinum, and other SoV commodities was also started to be applied to Bitcoin by a Twitter (now X) pseudonymous influencer called PlanB (@100trillionUSD). According to price projections created by the well-known influencer and broadly reproduced by Analysis platforms such as Coinglass , one Bitcoin should be worth $51,692 by September 14, 2023. However, 1 BTC is price d at $26,400 by press time. A value close to two times lower than the model ’s ‘fair value’. Bitcoin Stock-to-Flow model. Source: Coinglass What is the stock-to-flow model, how it works, and what are its limitations to Bitcoin? Notably, the description of how the stock-to-flow model works already sug...