RATE Group | German Bank Predicts $90,000 Bitcoin as Halvening Hardens BTC
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German Bank Predicts $90,000 Bitcoin as Halvening Hardens BTC

01 Oct German Bank Predicts $90,000 Bitcoin as Halvening Hardens BTC

Posted at 15:59h in Bitcoin News by

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BayernLB, a bank based in Munich, Germany, has produced a report on Bitcoin’s hard monetary policy versus those of various precious metals. Acknowledging Bitcoin’s halving schedule as unique in monetary assets, the bank makes a prediction of $90,000 per BTC following next year’s further restriction of supply.

The recently published research paper identities the stock-to-flow ratio of an asset as being a suitable way to quantify its “hardness.” Stock-to-flow simply refers to the amount of an asset that is issued versus that stockpiled in its current supply.

With Bitcoin, the supply is known and consistent as part of the network’s block reward system and difficulty adjustment program. The authors note that it is all-but-impossible to adjust the flow of new Bitcoin and this makes it similar to gold.

They also make other comparisons between the stock-to-flow ratios of gold and Bitcoin. Whereas they state that gold has earned its high stock-to-flow ratio over thousands of…

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