Contrary to what PlanB says, the Stock to Flow model actually says bitcoin will hit $100k by the end of 2021
By now you have likely heard about PlanB's Stock to Flow model.
He didn't invent it by any-means, but he has made it famous concerning bitcoin.
He took similar inputs to what people use to value precious metals and used them for bitcoin.
Specifically, it's calculated by dividing the existing supply of a commodity by that commodity’s annual production growth. Commodities with high stock-to-flow ratios such as bitcoin, gold, and silver have historically been utilized as stores of value.
The result has been a stock to flow model that has been remarkable accurate to date and has explained the vast majority of bitcoin's moves since bitcoin was created.
However, PlanB is wrong about one thing...
If you have followed PlanB for any length of time on crypto news outlets or on Twitter you will likely know that his latest model shows that bitcoin will hit $100k before the next halving.
The model looks something like this:
This is where he's technically right but also technically wrong at the same time.
If you look at the previous patterns, bitcoin tends to peak 12-18 months post halvings.
And the last bitcoin halving was in early May of this year.
Which means the next peak should be somewhere between May and December of next year.
PlanB loves to say $100k by 2024, but in all reality he should be saying something like $100k by 2022 if these past patterns and cycles continue to play out.
It's pretty clear that he is only saying 2024 to give himself some wiggle room just in case it doesn't play out like it has in the past.
Either way though, I think people will be pretty happy if it hits $100k by 2022 or by 2024.
Stay informed my friends.
-Doc