The stock-to-flow model sees the Bitcoin price at $ 100,000 from May 2021. How realistic the bull model is and what it has to do with efficient markets.With efficient markets, it’s one of those things. On the one hand, the prices are said to reflect the bundled expectations and information of all market participants. Accordingly, markets are complex mechanisms that convey information about scarcity, demand, supply and needs. People develop markets because no central planning authority could do justice to the complexity of supply and demand.
What is the stock-to-flow model?
PlanB is an anonymous Bitcoin researcher who claims to be a quantitative analyst for a large hedge fund. The quant became famous in the Bitcoin Space through an article that, with 22,000 “claps”, has become one of the most successful medium contributions to the topic of Bitcoin.In it, he examines the hypothesis to what extent there is a statistical connection between the Bitcoin price and its scarcity, measured in stock (amount of money already in circulation) and flow (amount of money added annually). In short: According to the content of the article, the course of the Bitcoin price can be explained almost perfectly using the stock-to-flow model – a sensation.