Read This Before Calling Me a Perma-Bear!
Not Convinced; I think the stock to flow model is great, but let's look at real data before we continue to put our faith in it. For example - Gold has a similar concept, in regards to bitcoin and other cryptocurrencies. Yet, when we adjust price with inflation, there is still extremely long periods like 1981-2006 where price didn't budge. And, if we look back even further at the time of the gold rush, gold did 1,000x its initial price in less than 20 years. What we are seeing now in bitcoin is the hype train coming to an end. Now, that doesnt mean that I don't think that bitcoin will be worthless, but I think it's safe to say that what we have seen since it started was the "Digital Gold Rush". If we expect bitcoin to every 4 years 100x-500x itself, we would be setting our expectations way too high, because we are assuming that the first 10 years are what will be the same cycle until earth itself is no more. Bitcoin can succeed! But!!!! We need to look at the idea of stock to flow, and understand that price still will not be identical to how it is every cycle, for reasons such as recessions/depressions - mass unemployment - wars - mass debt, and many more reasons.
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