• TennHedge

Bitcoin Stock to Flow Model Update

Many of you know that my reasoning for allocating a significant portion of my net worth to Bitcoin is that I view BTC as a superior hard money and store of value, with the potential to one day become a global reserve currency.


I highly recommend the book The Bitcoin Standard by Saifedean Ammous and also for you to follow @100trillionUSD on Twitter. @100trillionUSD's website has some good info on it as well: PlanBTC.com . Both of these sources do a much better job of explaining the subject matter of this article.


Hard assets like gold and silver derive a large portion of their value from the simple fact that they are scarce. Assets like these with high stock-to-flow values, which represent the number of years it would take for the current supply to be duplicated, appreciate against wasting assets like fiat currencies, which lose value every year in large part due to their supply inflation.


Bitcoin is arguably the hardest asset on the planet, as there will only ever be 21,000,000 Bitcoin in existence. Period.


As the Bitcoin halvings occur every 4 years, when the block reward (new supply rate) gets cut in half, Bitcoin's stock-to-flow multiple rises considerably. Eventually, no new Bitcoin will be minted, around the year 2140.


Here is the most up-to-date S2F model:


-TH


Disclosure: I am long Bitcoin.


You should always consider seeking financial advice from a licensed advisor before making decisions with your money, and you should not consider anything I write as financial advice but merely my opinion. Getting your financial house in order is a prerequisite for Bitcoin saving, in my opinion.


Disclosure: nothing in this article should be considered financial advice and I am not a financial advisor. Do your own research as everything in finance carries risk.