Well this is excellent! I never thought this modelling value of Bitcoin. Anyone not interested in the text here and want's to understand this video can watch this youtube video right here
https://www.youtube.com/watch?v=1VSqBxPi4Ww
It beautifully explains that article from where OP got the idea of this modelling. So basically if we look upon this ideology Bitcoin currently is overpriced but the current prices also include the effect of the forces of demand and supply so price seems genuine to me. But more importantly soon it can be much more expensive than Gold as an asset.
Topic: Stock-to-Flow Model: Modeling Bitcoin's Value with Scarcity - page 16. (Read 5729 times)
Wasn't a German bank last week also using a stock to flow model to relate the hardness of Bitcoin (in comparison to the hardness of gold). Saw the piece of news trawling the usual sites a few days ago, but it headlined with a $90k valuation by May 2020, so yeah, maybe needed a lot of tweaking. The researchers did admit they hadn't priced in halving though, but I fear to see what 6-figure digit that would have brought up to surface!
this news here? --> https://cointelegraph.com/news/state-backed-german-bank-says-bitcoin-will-leap-to-90-000-in-2020
Wasn't a German bank last week also using a stock to flow model to relate the hardness of Bitcoin (in comparison to the hardness of gold). Saw the piece of news trawling the usual sites a few days ago, but it headlined with a $90k valuation by May 2020, so yeah, maybe needed a lot of tweaking. The researchers did admit they hadn't priced in halving though, but I fear to see what 6-figure digit that would have brought up to surface!
Few articles have been so impactful on Bitcoin environment as the one from PlanB.
He tried to model Bitcoin valuation using Stock-to-Flow approach.
Stock-to-Flow approach is nothing new to financial world, it has long been used in physical commodities; it also was first applied to Bitcoin by Saifedean Ammous into his book "The Bitcoin Standard", as he used this approach to describe why Bitcoin is a "superior, harder money" when compared to commodities and FIAT money.
PlanB’s article has been published later than Saifedean’s book, but had a major impact: it was specifically oriented to determine Bitcoin Price and had a tremendous effect underlying the importance of halvings for bitcoin.
At the time of publication Bitcoin Price was around USD 3,400.
In this thread I will provide an explanation to some of misconceptions about this article, answering a few often posed questions, studying criticism to this model and some further development.
Link to original article:
Modeling Bitcoin's Value with Scarcity
If you think you can help here, just visit the thread!
He tried to model Bitcoin valuation using Stock-to-Flow approach.
Stock-to-Flow approach is nothing new to financial world, it has long been used in physical commodities; it also was first applied to Bitcoin by Saifedean Ammous into his book "The Bitcoin Standard", as he used this approach to describe why Bitcoin is a "superior, harder money" when compared to commodities and FIAT money.
PlanB’s article has been published later than Saifedean’s book, but had a major impact: it was specifically oriented to determine Bitcoin Price and had a tremendous effect underlying the importance of halvings for bitcoin.
At the time of publication Bitcoin Price was around USD 3,400.
In this thread I will provide an explanation to some of misconceptions about this article, answering a few often posed questions, studying criticism to this model and some further development.
Link to original article:
Modeling Bitcoin's Value with Scarcity
I am a strong believer in the utility of local boards.
I am lucky enough to be able to express myself in at least a couple of languages, but I know this is not the case for everyone.
A lot of users post only in the local boards because of a variety of reasons either language or cultural barriers, lack of interest or whatever other reason.
I personally know a lot of very good users (from the italian sections mainly, for obvious reason) who doesn't post in the international sections.
I think all those users they are missing a lot of good contents posted on the international (english) section or on other boards.
I am lucky enough to be able to express myself in at least a couple of languages, but I know this is not the case for everyone.
A lot of users post only in the local boards because of a variety of reasons either language or cultural barriers, lack of interest or whatever other reason.
I personally know a lot of very good users (from the italian sections mainly, for obvious reason) who doesn't post in the international sections.
I think all those users they are missing a lot of good contents posted on the international (english) section or on other boards.
If you think you can help here, just visit the thread!
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