Using Stock-to-Flow Model to Predict Bitcoin’s Future Price

Since the introduction of Bitcoin in 2009, the digital currency has seen a tremendous increase in its unit price. Initially introduced at $6, bitcoin's unit price at the end of June 2020 was around 9 thousand dollars.  Crypto fanatics and investors, at times, try to predict the future unit prices of bitcoin, but it has proven to be an enormous task. Investors want to understand the best time to invest in the bitcoins. So, how do you predict the price of…

Bitcoin Analyst Says Stock-to-Flow Model Not Appropriate for Price Prediction

Many Bitcoin enthusiasts have robust support for the Stock-to-Flow (S2F) model used for the prediction of Bitcoin prices. According to the model’s forecast, Bitcoin price will become more than $100k by 2021. Nevertheless, according to some analysts, the model use for Bitcoin is untoward. Their argument is that Bitcoin’s supply is fixed; hence the model is unable to dictate market movements. An analyst known as Hugo Nguyen on Twitter tweeted about the statements by Coinmetrics founder Nic Carter on the viewpoint. According to the S2F model’s…