According to PlanB, developer and advocate of the stock-to-flow model, the revised version of his model points to a Bitcoin price explosion.A larger audience became known to cryptanalyst PlanB through the stock-to-flow model. The model measures the value of a good based on its rarity. In relation to Bitcoin, this means that the fewer BTC in circulation or new ones are mined, the more valuable the asset. Halving, which occurs every 210,000 blocks and therefore every four years, is an important factor in this calculation. Ultimately, the BTC supply is becoming scarcer, the inflation rate is falling and Bitcoin is – according to the model – becoming increasingly rare and valuable.
Bitcoin at $ 100,000 by 2021?
PlanB has now expanded this model to include further key figures. The revised S2FX model also includes the development of silver and gold for comparison. In addition, the model clusters different phases of Bitcoin. Each of these phases marks respective adaptions and growth trends. In phase 1, the value was fed solely by the proof of concept. Phase two, on the other hand, is characterized by BTC as the means of payment used. Bitcoin made the next leap as a store of value. This “E-Gold phase” is now being replaced by the subsequent phase as an investment product.