February 4, 2023

Copy-paste | Bitcoin exchange rate falls short of Stock-To-Flow model

For an asset such as Bitcoin, the Stock-To-Flow coefficient is calculated as the ratio of the total emission to the number of coins produced in one year. In other words, it gives us an idea of ​​how many years it takes to get all the coins, provided that the production volume remains the same.

High Stock-To-Flow Assets(STF) are more expensive because they are considered rare. Gold has the highest ratio of 62. This means that at current production rates we will get all the gold in 62 years. People often call bitcoin digital gold precisely because it also has a high Stock-To-Flow ratio.

You can also use this metric.to predict the value of an asset based on total supply and annual production. Trader and analyst @filbfilb noted that the current Bitcoin exchange rate is 15-20% lower than the level predicted by the model.

Continuation of the link: https://beincrypto.ru/kurs-bitkoina-ne-dotyagivaet-do-modeli-stock-to-flow/