Bitcoin S2F model gives false sense of certainty, says Vitalik Buterin
Ethereum co-founder Vitalik Buterin has criticized the controversial Bitcoin (BTC) stock-to-flow (S2F) model, popularized by a pseudonymous Dutch institutional investor known as PlanB.The BTC stock-to-flow model gained a lot of attention during the bull run as it got several price predictions right, however, the model deviated on a number of occasions during the bull market as well.Buterin joined the growing list of critics of the model that aims to predict the price of BTC:Stock-to-flow is really not looking good now.I know it's impolite to gloat and all that, but I think financial models that give people a false sense of certainty and predestination that number-will-go-up are harmful and deserve all the mockery they get.
https://t.co/hOzHjVb1oq pic.twitter.com/glMKQDfSbUThe S2F model quantifies an asset’s price based on its scarcity and was primarily used for popular metals such as gold and silver.
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