BTC - Stock to Flow says price is right where it should be
bitcoin·@jrcornel·
0.000 HBDBTC - Stock to Flow says price is right where it should be
# With a little over 3 months until Bitcoin's next halving, price is exactly where it should be That is according to the stock-to-flow model that has predicted bitcoin's price moves with over 90% accuracy to date. At least according to this: https://www.ccn.com/bitcoin-stock-flow-model-complete-nonsense-bloomberg-editor/ The stock-to-flow model forecasts bitcoin prices using two inputs; the number of bitcoins in circulation (the stock) and the number of new bitcoins entering circulation (the flow). The idea is that as the new supply (the flow) slows, the price must keep going up. The resulting chart as it relates to bitcoin looks something like this: https://i.postimg.cc/TPNZFGWF/05144da5572c73dc89ec610c111a3bf7.png (Source: https://cointelegraph.com/news/bitcoin-price-matches-stock-to-flow-forecast-as-100k-halving-nears) # Yes yes, I know, the whole thing sounds a little like pseudo-science in terms of predicting bitcoin's prices... But guess what... This is the same model that has been used to forecast gold and other precious metal prices for decades, and it has mostly worked. With bitcoin, thus far, it has been over 90% accurate in terms of predicting prices. So, given that kind of track record, it makes a lot of sense to pay attention to what the forecast is pointing to. And, in terms of bitcoin, it is currently trading exactly where it should be according to the model. # What's more... If this model continues to accurately predict prices, it is saying that bitcoin will be $100k at some point by 2022. I'm not sure about you but I sure like a model that is predicting $100k bitcoin prices that has been over 90% accurate thus far! C'mon stock-to-flow, keep doing your thing! Stay informed my friends. -Doc
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