Is Bitcoin Broken? Stock To Flow Model Fault And Why it Matters - S2FX

The Bitcoin Stock To Flow (S2FX) Model Is Broken And that Matters - S2FX.

Is this signalling an overall Crypto Crash?

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Bitcoin has been making headlines lately. Investors are wondering if it's a bubble or the future of money.

When you look at the Bitcoin price chart, it looks like this is all speculative froth - but when you understand how Bitcoin works, and what drives its valuation in the first place, that changes everything.

The Bitcoin Stock To Flow Model (STFM) is a theoretical model that predicts future bitcoin prices. But is this model broken for Bitcoin? The STFM assumes that the supply of bitcoin will be fixed and the price will increase as demand increases. But what if this doesn’t work?

The truth is, the stock to flow ratio has already been used for decades in the commodities markets. The stock to flow ratio is a theoretical measure of the number of stocks in circulation and is divided by the annual production flow.

So are the Bitcoin gurus who use S2FX, using a flawed formula?

These gurus say the Stock-to-Flow Cross Asset Model (or S2FX for short) can accurately "price" not just assets like Bitcoin, but also things like gold and silver.

Former university math professor and legendary resource investor Marin breaks it down and discusses it in relation to Gold, Silver, Bitcoin, Edward Thorp, Einstein, Elvis, Ace Frehley, and even Stradivarius Violins.