PlanB, the anonymous Twitter pseudonym behind the popular stock-to-flow model and its variants, recently made another somewhat optimistic prediction about the price trajectory of Bitcoin.
The expert predicted that the principal cryptocurrency would achieve a six-digit price tag by the end of 2023 using both the S2F and the logarithmic regression.
PlanB later revealed that he compared bitcoin to other assets such as gold, which has a stock-to-flow ratio of roughly 60 and a market cap of $10 trillion, as well as real estate. The latter’s S2F ratio is 100, and its market cap is ten times that of gold.
“It would truly surprise me if bitcoin had a lower market value than gold after the next halving when BTC S2F 100+,” he says.
The next halving is expected to happen in early 2024.
The stock-to-flow model considers the size of existing reserves (or stockpiles) and the annual supply of new bitcoins in circulation to be the stock and the flow, respectively. It began to gain attention among BTC bulls because it was relatively accurate until recently and produced exceptionally favorable price predictions.
However, one of those estimates predicted that bitcoin would reach. Then, surpass $100,000 by the end of last year, which didn’t happen. As a result, the number of S2F critics has grown.
PlanB had a different model, which he referred to as the “floor model” or “worst-case scenario,”
that had consistently excellent accuracy for several months. It was, however, shattered in November and December of last year. That’s, when it predicted bitcoin prices of $98,000 in November and $135,000 at the end of December.
Despite these miscalculations, PlanB is certain that bitcoin will eventually achieve a six-digit price. Of course, even if it takes a few years longer than projected.
Related Posts – Ferrari joins the NFT universe through a collaboration with a Swiss…
Disclaimer: The information provided is not trading advice, Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.