Vitalik Buterin, the Ethereum founder mocks Bitcoin’s stock-to-flow model after the number one cryptocurrency crashed hard in the past week so let’s read more today in our latest cryptocurrency news.
The Ethereum founder mocks the BTC model after the recent market crash which led to a deviation from the price predictions. The creator of the model responded quickly and had a few things to say. Developed and published a few years ago by analyst PlanB, the stock-to-flow model and its variations predicted Bitcoin’s future price based on the existing reserves and the annual supply of BTC on the market. It also attracted plenty of supporters as it predicted huge price tags for BTC most of which came true. However, the model started getting it wrong at the end of last year when it predicted BTC will hit $100,000 but it didn’t.
Stock-to-flow is really not looking good now.
I know it’s impolite to gloat and all that, but I think financial models that give people a false sense of certainty and predestination that number-will-go-up are harmful and deserve all the mockery they get. https://t.co/hOzHjVb1oq pic.twitter.com/glMKQDfSbU
— vitalik.eth (@VitalikButerin) June 21, 2022
It also saw BTC trading in a range between $50,000 and $150,000 for 2022 but after the recent market crash where the asset recorded an 18-month low below $20,000 it is safe to say that the model went out of its way from the bullish predictions. The stock-to-flow model had a fair share of critics and one of the biggest was Vitalik Buterin. He supported one of Ethereum’s core developers who blasted the model and called it an epic failure but Buterin was slightly more respectful but still discredited the model. It didn’t take long for PlanB to get involved in the conversation and said that Leaders often tend to blame others during a market crash.
PlanB admitted that the model had a good run for three years but got deviated from the trajectory. The analyst also said that there are two possible conclusions from the current market situation, either BTC is extremely undervalued and will bounce back or S2F will be less useful in the future.
After a crash aome people are looking for scapegoats for their failed projects or wrong investment decisions. Not only newbies but als “leaders” fall victim to blaming others and playing the victim. Remember those who blame others and those who stand strong after a crash. https://t.co/4nJdHq84pm
— PlanB (@100trillionUSD) June 21, 2022
As recently reported, Ethereum co-founder Vitalik Buterin doesn’t think that digital assets have a chance of stealing the supremacy of traditional currencies. The global economy is not in its best shape in the past few months with the constant growing prices of everyday services and supplies with the war between Russia and Ukraine, now, the future looks even worse.
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