I mean, S2F was supposed to be a model that takes into account all variables so it failed. But it’s directionally right and I think it will stay that way.
Discussion
Valid point, I’m just curious if SBF was able to prevent $100k, idk if I believe he had that much power to suppress, but maybe I’m underestimating.
I think he absolutely did mess up the price (unintentionally). It caused cascading liquidations. People were leveraged and got rekt. But that’s the point. The model didn’t take into account leverage on Bitcoin and the effects. That being said, I believe in NGU and that NGU might roughly align with S2F.
Idk how I feel about the chart, this cycle will tell. The stock to flow ratio does matter, golds is 62 because it takes 62 years for the supply/stock to double making it the best store of value.
Last I checked btc’s s2f ratio was 57, VERY close to gold, but after this halving it will surpass gold and leave it in the dust, I do think this is something worth keeping in mind and I’m interested to see if we end up correcting course or if it was indeed a misinterpretation of the ratio.
Please forgive me; what is S2F?
Stock to flow!