Vitalik Buterin, co-founder of Ethereum (ETH), criticized the stock-to-flow (S2F) model for predicting and measuring the value of Bitcoin (BTC) and misrepresenting the value of digital assets. He claimed to create a sense of security.
According to Buterin, financial models like S2F give people the false guarantee of “increasing numbers” before adding that such models are “harmful and worthy of all the ridicule they get.” increase.
The flow from inventory to flow isn’t really looking good right now.
I think it’s rude to exaggerate, but I think the financial model that gives people the false beliefs and appointments of increasing numbers is harmful and deserves all the ridicule they get. https://t.co/hOzHjVb1oq pic.twitter.com/glMKQDfSbU
— Vitalik.eth (@VitalikButerin) June 21, 2022
What is the Plan B stock-to-flow model?
Cryptographic analyst Plan B has developed a model from the now infamous stock to flow. The model quantifies the value of an asset based on its shortage. Originally used for precious metals such as silver and gold, Plan B was used to predict that the value of Bitcoin would increase tenfold every four years.
Last year, despite the slight deviation, it received widespread attention when it correctly predicted the future price of Bitcoin in Bull Run. However, critics argue that the main problem with this theory is that it only considers the supply side of BTC, assuming that demand will continue to grow.
Using the model, Plan B predicted that Bitcoin would reach $ 100,000 by the end of 2021. However, the coin only touched a record $ 69,000 in November before it crashed.
Bitcoin’s decline sheds light on the S2F model
With Bitcoin prices recovering from the crash to less than $ 20,000, crypto analysts are starting to look at the S2F model more roughly.
The “flow and stock” model is a grand failure for PlanB to just delete its account.
Sadly, he doesn’t because there are still 1.8 million followers who eat his hopium trash every day.
—Sassal.eth 🦇🔊🐼 (@ sassal0x) June 21, 2022
According to Sassal, the S2F model is a “major failure” and Plan B adds that his Twitter account needs to be deleted.
Reminds me of the wrong “math” model @hashed_official Demand for UST has increased exponentially and has been posted to make people think that LUNA will meet insane price targets like $ 1,000. pic.twitter.com/T7PIyTULmj
— FatMan (@FatManTerra) June 21, 2022
FatManTerra also took the opportunity to criticize the “math” model, which predicted that LUNA could reach $ 1,000 in value.
Plan B responds
Plan B responds to many criticisms of his S2F model by saying, “People are looking for a scapegoat.”
After the crash, some are looking for a scapegoat for a failed project or wrong investment decision. Not only beginners, but also other “leaders” are the victims of blaming others and acting as victims. Remember those who blame others and those who stand strong after a crash. https://t.co/4nJdHq84pm
— PlanB (@ 100trillionUSD) June 21, 2022
Plan B continued that “leaders” of spaces like Vitalik Buterin “blame others and play victims.”
#bitcoin The latest compatibility with the S2F original 2019 model (gray) and the latest data (white dots). The S2F model was certainly strong from March 2019 (BTC 4K) to March 2022 (BTC 45K).For now: BTC will be very underrated and will come back soon, or S2F will be useless in the future pic.twitter.com/JdnLINpzTV
— PlanB (@ 100trillionUSD) June 20, 2022
June 20, Plan B share A graph showing that the S2F model is accurate from March 2019 to March 2022 and that “BTC is very underrated and will come back soon or S2F will be useless in the future”.
