Could you elaborate on the methodology for calculating Bitcoin's Stock-to-Flow (S2F) ratio? This metric is often cited as a predictor of Bitcoin's price, so understanding its calculation is crucial. Does it involve considering the total supply of
Bitcoin and its issuance rate? Or are there other variables that factor into the S2F ratio? Additionally, how does the S2F ratio change over time as new Bitcoins are mined, and how does this impact its reliability as a price indicator? Thank you for your insights on this topic.
6 answers
Leonardo
Sun Jul 14 2024
The Stock-to-Flow (S2F) ratio for Bitcoin serves as an indicator of its scarcity and potential value.
NebulaChaser
Sun Jul 14 2024
For those unfamiliar with how to find these numbers, Bitcoin's circulating supply can be easily accessed by visiting CoinMarketCap's Bitcoin page.
CryptoVisionary
Sun Jul 14 2024
To calculate this ratio, one must divide the total supply of Bitcoin by its fixed annual flow.
BlockchainLegendary
Sun Jul 14 2024
At the time of writing, Bitcoin's total supply stands at 19,060,593 BTC.
Lorenzo
Sun Jul 14 2024
The fixed annual flow of Bitcoin, on the other hand, is 328,500 BTC.