Stock-to-Flow Model

Stock-to-Flow Model

In a Nutshell

The Stock-to-Flow (SF or S2F) model is a way to measure the scarcity of a specific ressource.
It compares different 'store of value' commodities like gold, silver or platinum and is famous for its Bitcoin scarcity modelisation.

  • The Flow ratio is calculated by using two metrics : the total amount of the ressource already mined (the Stock), divided by the amount produced during in a year (the Flow).
  • The modelisation predicts a bitcoin price at $100k in 2021.
  • The model divided economists from traditional finance community and token economy experts.

Plan B is an institutional investor and creator of the Bitcoin Stock-to-Flow valuation model.
He is one of the most notorious Bitcoin investors

Bitcoin is the first scarce digital object the world has ever seen.

https://100trillionusd.github.io/#one
https://digitalik.net/btc/

Bitcoin Stock-to-Flow Cross Asset Model
“The important thing in science is not so much to obtain new facts as to discover new ways of thinking about it” - William Lawrence Bragg The original BTC S2F model is a formula based on monthly S2F…