PlanB Reveals Bitcoin S2F Prediction For 2024 Halving
Sunil Sharma - Coingape
Creator of the Bitcoin stock-2-flow (S2F) model, popularly known by his pseudonym, PlanB has taken to twitter to reveal S2F’s model prediction after the 2024 halving.
Bitcoin S2F model predicts $500K+ average after 2024 halving
134,842 people have casted votes in a poll carried out by PlanB on Twitter, 81% believe that Bitcoin would remain below $500,000 by 2027, the former institutional investor and creator of the stock-to-flow model begs to differ, his S2F model predicts $500,000+ average after 2024 halving.
He has also put it that the situation is very much similar to March 2019 when he published S2F model and BTC was below $4K, PlanB said “Majority thought S2F prediction of $55K after 2020 halving was crazy.“ The Bitcoin stock-to-flow uses scarcity to quantify Bitcoin value.
A Bitcoin halving is the process of halving the rewards of mining Bitcoin after each set of 210,000 blocks is mined. By reducing the rewards of mining Bitcoin as more blocks are mined, a Bitcoin halving limits the supply of new coins, so prices could rise if demand remains strong.The halving is usually followed by massive price proliferation.
The most recent halving which took place on May 11 2020 saw bitcoin’s price continuing to perform bullishly a full year after the event took place, It rose by more than 559%.
The Bitcoin S2F model
In 2019, PlanB published his Stock-to-Flow model for the Bitcoin price, the S2F model states that the price of bitcoin is driven by its scarcity, as the halving ensure that bitcoin becomes ever more scarce, its price should continuously increase.
The primary argument for the veracity of this model is that since it was created in 2019, it has been very accurate in predicting the price trend of Bitcoin. Some analysts feel the model is too bullish.
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