RATE Group | Bitcoin Stock-to-Flow Model is Complete Nonsense, Rips Bloomberg Editor
73259
post-template-default,single,single-post,postid-73259,single-format-standard,ajax_fade,page_not_loaded,,qode_grid_1300,side_area_uncovered_from_content,footer_responsive_adv,qode-content-sidebar-responsive,qode-child-theme-ver-1.0.0,qode-theme-ver-13.3,qode-theme-bridge,wpb-js-composer js-comp-ver-7.9,vc_responsive
 

Bitcoin Stock-to-Flow Model is Complete Nonsense, Rips Bloomberg Editor

25 Dec Bitcoin Stock-to-Flow Model is Complete Nonsense, Rips Bloomberg Editor

Posted at 13:36h in Cryptocurrency News by

[ad_1]

  • Bloomberg Markets editor bashes the Bitcoin Stock-to-Flow model for allegedly mispredicting the cryptocurrency price.
  • Joe Weisenthal says scarcity is not an influential factor in pricing bitcoin in the future.
  • People only need to bid up the price of existing bitcoin to make it more expensive, he argues.

A price forecasting model that predicts bitcoin at a $100,00 valuation by Christmas 2021 is complete nonsense, according to Joe Weisenthal.

The Bloomberg Markets editor questioned the much-celebrated Stock-to-Flow (S2F) model for measuring an asset’s future pricing on the basis of its supply rate. He explained that people would naturally bid up bitcoin’s price should they decided to buy the cryptocurrency, adding that “there is no need for more coins at all.”

Mr. Weisenthal tweeted:

Let’s suppose society wanted to hold a lot more BTC. Maybe $268 billion […] All people need to do is bid up the price of Bitcoin until it doubles. Then voila. Society’s desire to hold $268…

[ad_2]

Source link

Tags:
, , , , , , ,