Bitcoin to $288,000 in this bull run?
We are not big fans of market predictions. The majority of future Bitcoin price announ-cements are (educated) guesses and even the most high-profile forecasters are proven wrong time and again. However, sometimes we come across a serious quantitative valuation attempt.
One such example is the Bitcoin Stock-to-Flow Model, created by PlanB, a Dutch institutional investor with a quantitative finance background. In this model, he uses scarcity to quantify bitcoin value. The hypothesis in his study is that scarcity, as measured by stock-to-flow, drives value.
The model estimates that the Bitcoin price will reach $288,000 before the next halving. The model is a working hypothesis but has already been verified by several other analysts. If you are not familiar with PlanB’s research yet, we suggest you read his latest blog post on the topic.