Is Bitcoin Following S2F Model? How a $200K Top Could be in Sight
Is Bitcoin a commodity? It is, according to most regulatory agencies including the CFTC. But is Bitcoin a store of value (SoV) commodity? That seems to be the current consensus. Most of the investors are treating it as so, and calling it “Gold 2.0.” Well, if that’s the case, then Bitcoin should follow the stock-to-flow model. At least to a degree. The model gauges the total amount of “stock” – Bitcoin, in this case – available at the moment against the “flow” of new production to get the stock-to-flow ratio. That ratio quantifies scarcity. According to the creator of the…