Part 2/8:
In this article, we will explore the stock-to-flow model, compare it with alternative predictions, and examine a thrilling scenario proposed by Plan B that suggests Bitcoin could reach a staggering $1 million by 2025.
Understanding the Stock-to-Flow Model
To grasp the future predictions for Bitcoin, it is crucial to understand the stock-to-flow model. This model examines the relationship between the existing supply of Bitcoin (stock) and the rate at which new Bitcoins are mined (flow). The model asserts that Bitcoin's price follows a cyclical pattern correlated with its halving events, which occur approximately every four years.