According to the Stock to Flow model, Bitcoin will soon be scarcer than gold – what that means for the price

The Bitcoin price has been hovering around the $43,000 mark for days, so there is no longer any sign of the correction to $38,500 two weeks ago, but the high of more than $48,000 is still a long way off. As long as the price does not fall below the $40,000 mark and does not exceed $45,000, it is difficult to make an accurate forecast for the near future. In the long term, after the halving in April, most experts are bullish on Bitcoin. The analyst PlanB, who has earned a good reputation in the scene through his forecasts, once again uses the stock to flow model and comes to the conclusion that BTC will soon be more scarce than gold. In his opinion, this should soon be reflected in the course.

Stock to flow ratio higher than gold

The stock-to-flow ratio (S2F) is a measure that describes the current quantity of an asset (stock) relative to the quantity produced each year (flow). This ratio is used to evaluate the scarcity and potential stability of an asset. A higher stock-to-flow ratio indicates greater scarcity of the asset because there is a greater inventory relative to annual production. This means it would take longer to significantly increase the existing stock through annual production alone.

In the context of currencies or assets such as gold or Bitcoin, a high S2F ratio suggests a lower inflation rate and higher value retention, making the asset potentially more attractive as a long-term store of value. With the Bitcoin Halving in April, in which only half as many Bitcoins as before are distributed with each new block, the S2F ratio rises higher than that of gold.

PlanB was the first to transfer the stock to flow model to Bitcoin and caused a stir years ago. Since then, he has enjoyed a good reputation in the crypto community, especially because his predictions subsequently turned out to be true. This time too, he explains that he would be surprised if the scarcity of Bitcoin was not soon reflected in its price. He also sees digital gold soon reaching a market cap of more than $10 trillion, which would mean a price target of more than $500,000 for Bitcoin.

Several experts expect Bitcoin price to hit $500,000

The fact that one Bitcoin will cost half a million dollars may still sound utopian to some people today. But that’s what people thought before every bull run about the next all-time high. With a Bitcoin price of $10,000, there was still talk that “the bubble would soon burst” and as a result the price rose to around $69,000. PlanB is by no means alone with its price target of more than $500,000. Cathie Wood, CEO of Ark Invest, also expects that one Bitcoin could soon cost more than half a million dollars.

However, PlanB is of the opinion that this could be the case much earlier than Wood assumed. Michael Saylor, CEO of MicroStrategy, is also known for his bullish forecasts, according to which one Bitcoin could cost more than a million dollars. The proponents are not just throwing around numbers, but rather assume that institutional investors could invest a certain percentage of their capital in Bitcoin in the long term, which would also enable these price targets to be achieved.

Of course, no one knows exactly how high the price will actually rise in the end. So far there is only widespread agreement that there will be an unprecedented bull run in the next 2 years and that Bitcoin can rise well above $100,000. A development that altcoins should also benefit from. Especially those that are directly related to BTC. Bitcoin Minetrix is ​​currently the focus of investors.

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Bitcoin Minetrix could outperform BTC

Even if the performance expected for Bitcoin over the next 2 years would be impressive, there are of course numerous altcoins with lower market capitalizations that can deliver significantly higher returns. Price increases of more than 1,000% are not uncommon here. Bitcoin Minetrix ($BTCMTX) is currently particularly impressive due to its unique use case, which allows investors to mine Bitcoin themselves without having to buy the necessary hardware.

($BTCMTX Presale – Source: Bitcoin Minetrix)

The innovative stake to mine approach makes it possible to receive credits for staking the $BTCMTX token, which can be used for Bitcoin cloud mining. In the first step, stakers receive a return in the form of additional tokens, as is the case with other coins. In the next step – after the presale has ended – the stake to mine phase begins, in which the return is in the form of mining -Credit is paid out.

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Since the credit is distributed directly on the platform through smart contracts and can also be managed in the Stake to Mine dashboard after launch, the risk that was previously associated with cloud mining is eliminated as fraud is excluded. The more $BTCMTX tokens you contribute to the staking pool, the more credits you receive.

(Stake to Mine Dashboard – Source: Bitcoin Minetrix)

The $BTCMTX tokens are currently still available for pre-sale, although experts believe that they are still significantly undervalued at the current price. Since most buyers are long-term oriented and want to mine Bitcoin themselves later, the supply is likely to be scarce after the start of trading on the crypto exchanges, as most of the tokens sold so far have already been paid into the staking pool. This makes it likely that demand can quickly outstrip supply after listing on the exchanges, which could increase the price of $BTCMTX by more than 10 times.

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