Lorenzo
Mon Jul 08 2024
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6 answers
1598
Will bitcoin's stock-to-flow halve in 2024?
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 <a href="https://www.btcc.com/en-US/academy/research-analysis/flow-flow-price-prediction-2023-2025-2030-is-flow-a-good-investment" title="Flow">Flow</a> 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?
Arianna
Sat Jul 06 2024
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7 answers
1294
How does bitcoin stock-to-flow work?
Could you elaborate on the mechanics of Bitcoin's stock-to-flow model? I'm curious to understand how it functions as a predictor of Bitcoin's value. Specifically, how does the ratio of the existing supply of <a href="https://www.btcc.com/en-US/academy/research-analysis/bitcoin-btc-price-prediction-2023-2025-2030-is-btc-a-good-investment" title="Bitcoin">Bitcoin</a> to its annual production rate influence the market's perception of its scarcity and potential for appreciation? Additionally, are there any caveats or limitations to this model that investors should be aware of? I'd appreciate a concise yet thorough explanation of this concept.
