Cryptocurrency Q&A
Will bitcoin's stock-to-flow halve in 2024?
Will bitcoin's stock-to-flow halve in 2024?
Lorenzo
Mon Jul 08 2024
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6 answers
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The crypto-community is abuzz with speculation surrounding a potential halving in Bitcoin's stock-to-flow ratio in 2024. For those unfamiliar, the stock-to-flow model gauges scarcity in commodities, including digital assets, by comparing the current stock or supply to the annual Flow or production. The question begs: will Bitcoin's supply become increasingly scarce, driving up its value, as the next halving event approaches? With Bitcoin's mining rewards halving every four years, the stock-to-flow ratio is expected to halve accordingly. But will this occur precisely in 2024? What factors could influence this timeline? And how might investors and miners alike position themselves in anticipation of such a milestone?
6 answers
alexander_smith_musician
Wed Jul 10 2024
The stock-to-flow ratio of Bitcoin is poised to reach a significant milestone, climbing towards a figure of 52. This ratio, which measures the scarcity of an asset, brings Bitcoin closer to the levels observed in gold.
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Pietro
Wed Jul 10 2024
The next Bitcoin halving event, scheduled for 2024, will further escalate this ratio to an impressive 113. This increase in scarcity is a unique characteristic of Bitcoin's supply schedule.
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GeishaMelodious
Wed Jul 10 2024
In contrast, gold, long considered a benchmark for precious metals, has a stock-to-flow ratio of "only" 62. This ratio has remained largely stable over time as gold mining and production have followed a relatively predictable pattern.
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SamsungShineBrightnessRadiance
Tue Jul 09 2024
The key difference lies in the fact that gold does not undergo halving events, where the reward for mining decreases over time. Bitcoin's halving events, which occur roughly every four years, reduce the supply of new coins entering the market.
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FireFlyer
Tue Jul 09 2024
This reduction in supply, coupled with the increasing demand for Bitcoin, drives up its stock-to-flow ratio. As a result, Bitcoin becomes scarcer and more valuable as time progresses.
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