cryptocurrency

Ethereum's Vitalik Buterin Slams Bitcoin Stock-To-Flow Model



© Reuters Ethereum’s Vitalik Buterin Slams Bitcoin Stock-To-Flow Model

(CRYPTO: ETH) creator Vitalik Buterin joined a host of critics in mocking the (CRYPTO: BTC) Stock-to-Flow (S2F) model.

What Happened: In a tweet on Monday, Buterin criticized S2F for being one of the financial models that give people a false sense of certainty the price will go up.

S2F is a widely popular quantitative price prediction model put forward by pseudonymous institutional investor Plan B. According to the model’s hypothesis, the price of Bitcoin would continue on an upward trajectory delivering investors approximately tenfold returns every four years.

The model also predicted the price of Bitcoin would hit $100,000 by the end of 2021 and would be well on its way to the $1 million mark by the year 2026.

Last week, Bitcoin hit a two-year low of $17,708 and a majority of market participants slammed Plan B’s model for “selling hopium” to the masses of retail investors.

See Also: IS BITCOIN DEAD?

Plan B himself responded to Buterin’s criticism by saying that crypto industry newbies and “leaders” were looking to find a scapegoat after a major crash.

BTC Price Action: According to data from Benzinga Pro, Bitcoin was trading at $20,795.74 at press time, gaining 2.07% over the last 24 hours.

Read More   First Mover Asia: Markets in Wait-and-See Mode; Bitcoin Hovers Around $57K - Coindesk

Photo: Philip McMaster, www.RepublicOfConscience.com via Flickr Creative Commons

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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