RATE Group | Weak Dollar Can Upend Bitcoin Stock-to-Flow Model
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Weak Dollar Can Upend Bitcoin Stock-to-Flow Model

02 Nov Weak Dollar Can Upend Bitcoin Stock-to-Flow Model

Posted at 13:51h in Bitcoin News by

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The creator of the highly popular Stock-to-Flow model for forecasting the Bitcoin (BTC) price says he would be happy if it stays valid for the next 12 years.

PlanB: Stock-to-Flow not until 2140

In a Twitter exchange beginning on Nov. 1, the account known as PlanB said the tool, which has proven to be extremely accurate, was not designed to last forever. 

“I normally don’t deploy statistical models 120+ years out into the future. I would be happy if the model holds for 1 or 2 or maybe 3 more halvings,” he wrote. 

Stock-to-Flow measures Bitcoin price using the existing available supply — the stock — and the number of new Bitcoin units entering circulation — the flow. 

Bitcoin’s flow halves roughly every four years in what is called a block reward halving. Each event decreases the amount of Bitcoin paid to miners for finding a new block. 

BTC/USD has entered a bullish phase in the period following both halvings it has seen so far.

“Everything else’s value is…

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