Why the Stock-to-Flow Bitcoin Valuation Model Is Wrong

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Nico Cordeiro is the chief investment officer and fund manager at Strix Leviathan. He oversees quantitative research, strategy development, risk management and portfolio allocation. A longer version of this post can be found here.

The stock-to-flow model (SF), popularized by a pseudonymous Dutch institutional investor who operates under the Twitter account “PlanB,” has been widely praised and is the leading valuation model for bitcoin proponents. SF has achieved viral popularity and inspired rags-to-riches dreams for those gambling it all on the future of bitcoin. However, we believe the model’s accuracy will likely be about as successful at forecasting bitcoin’s future price as the astrological models of the past were at predicting financial outcomes.
Read on: https://www.coindesk.com/why-the-stock-to-flow-bitcoin-valuation-model-is-wrong