Bitcoin (BTC) Not an Asset Anymore, ‘Stock-to-Flow' Model Author Says

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Sat, 05/02/2020 - 16:30
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Mr. PlanB recently published a significant revision of his 'stock-to-flow' model, which was made in accordance with his cross-asset approach. While the ultra-bullish sentiment of the model remains untouched, some of the figures are changed in the new version.

Crypto King Goes Through Evolution Stages

Mr. Plan B highlighted that similar 'stock-to-flow' models exist for different assets within in the financial world. This lets us better understand the scarcity of Bitcoin (BTC) among its 'competitors'.

Plan B also announced that Bitcoin (BTC) is approaching the fourth major phase in its history. The first stage was nothing but a toy, the second stage reached the price of $1, and started to be treated as a parity with the U.S. Dollar. With an increase in adoption and price, BTC evolved into a Gold (XAU) parity.

Now on the verge of the fourth stage, the status of Bitcoin (BTC) is much higher. It is far beyond the concept, e-cash, and e-Gold as it is now a financial instrument. It is also something totally unprecedented in terms of global financial assets. Plan B will not be surprised if a doomed nation decides to utilize Bitcoin (BTC) for cross-border settlements.

More Data Used, More Noise Added

Speaking about his model, Plan B revealed that its accuracy has been proven by a significant amount of research, even with more detailed data during more granular time periods. Even his new model does not reconsider the role of scarcity in increasing the overall value.

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Mr. Plan B mentioned the last two last crucial milestones in terms of absolute numbers. For him, it was one billion transactions and one hundred billion net for the Bitcoin (BTC) market cap.