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Three reasons why PlanB’s stock-to-flow model is not reliable

CryptocurrencyJan 03, 2022 09:20AM ET
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In the last couple of years, the stock-to-flow model proposed by PlanB has become very famous. A quantitative study published on the site planbtc.com shows the model and the prediction that Bitcoin (BTC) could reach the capitalization of $100 trillion. Obviously, the crypto industry, including myself, was fascinated by the logic of the model and even more so by the idea that it could reach and exceed $100,000 as early as 2021.

In fact, the stock-to-flow model assumes that there is a relationship between the amount of a precious metal that is mined each year (flow) and the amount already mined previously (stock).

Daniele Bernardi is a serial entrepreneur constantly searching for innovation. He is the founder of Diaman, a group dedicated to the development of profitable investment strategies that recently successfully issued the PHI Token, a digital currency with the goal of merging traditional finance with crypto assets. Bernardi’s work is oriented toward mathematical models development which simplifies investors’ and family offices’ decision-making processes for risk reduction. Bernardi is also the chairman of investors’ magazine Italia SRL and Diaman Tech SRL and is the CEO of asset management firm Diaman Partners. In addition, he is the manager of a crypto hedge fund. He is the author of The Genesis of Crypto Assets, a book about crypto assets. He was recognized as an “inventor” by the European Patent Office for his European and Russian patent related to the mobile payments field.

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Three reasons why PlanB’s stock-to-flow model is not reliable
 

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