There are plenty of metrics and models used to anticipate the future price of Bitcoin. A popular one is stock to flow ratio but one Bloomberg host has called it nonsense adding that coin supply has little effect on BTC prices.<\/p>\n
According to economics reference materials, stock to flow is defined as a relationship between production and current stock of a commodity<\/p>\n
It has gained a following in the crypto community as a measure of future Bitcoin performance<\/a>. This has stemmed from updated models and theory published<\/a> by industry analyst \u2018PlanB\u2019.<\/p>\n Using previous Bitcoin halvings as an example the analyst predicted that the same will happen again as the stock to flow ratio<\/a> doubles after the BTC block reward is halved. This works on the premise of perceived supply scarcity and resultant increase in demand.<\/p>\n It has been a strong argument, especially when backed up with charts showing previous rallies after a halving. . A live chart can be viewed here<\/a> and it has been pretty accurate so far.<\/p>\n Executive editor of news for Bloomberg Digital Joe Weisenthal thinks otherwise though and has refuted the model labeling it as \u2018nonsense\u2019.<\/p>\n Ok, since nothing's going on today, I'm going to do a quick thread on why the concept of using Stock-to-flow analysis (or any other future supply based model) is complete nonsense for anticipating the future value of Bitcoin 1\/<\/p>\n — Joe Weisenthal (@TheStalwart) December 23, 2019<\/a><\/p><\/blockquote>\n\n