4 ms·

Digital scarcity is why Bitcoin is so valuable (and why other cryptocurrencies not so much). Read the Bitcoin Standard book, or Plan B's article if you honestl

Digital scarcity is why Bitcoin is so valuable (and why other cryptocurrencies not so much). Read the Bitcoin Standard book, or Plan B's article if you honestly want to understand why Bitcoin is so crucial in the current financial climate.

fossuser 7y ago
Thanks - I’ll check them out. Plan B: https://medium.com/@100trillionUSD/modeling-bitcoins-value-with-scarcity-91fa0fc03e25 https://medium.com/@100trillionUSD/modeling-bitcoins-value-w... Bitcoin Standard: https://www.amazon.com/Bitcoin-Standard-Decentralized-Alternative-Central/dp/1119473861/ref=nodl_ https://www.amazon.com/Bitcoin-Standard-Decentralized-Altern...
- IdeasVentured 7y ago
  While these are undoubtedly interesting reads, it should be noted that stock to flow as a predictive model is inherently flawed in that the demand side is not taken into account. There are many who like the model though, so well worth a read. It's also led to interesting efficient market hypothesis discussions which are worth looking into, I would recommend reading some of Nic Carter's work. Edit: 'not taken into account' is probably the wrong way to say it, rather it is assumed.
  - xiphias2 7y ago
    Inherently flawed compared to what model? Have you cross checked-it with other models? I think it's amazing how well a simple model with just 2 variables can explain the difference between Bitcoin price movements in the first few years and later years. Time based models are so much worse that it's crazy. I don't know any model that comes even close to it. Anyways stock-to-flow predicts that for a halving of money issuance the demand for the asset as expressed in market cap will be 8x. If course market cap is a strange and not perfect metric for demand, but that's still the best we have for comparing assets and asset classes.

4 ms·

Digital scarcity is why Bitcoin is so valuable (and why other cryptocurrencies not so much). Read the Bitcoin Standard book, or Plan B's article if you honestl

by xiphias2 7y ago

fossuser 7y ago
Thanks - I’ll check them out. Plan B: https://medium.com/@100trillionUSD/modeling-bitcoins-value-with-scarcity-91fa0fc03e25 https://medium.com/@100trillionUSD/modeling-bitcoins-value-w... Bitcoin Standard: https://www.amazon.com/Bitcoin-Standard-Decentralized-Alternative-Central/dp/1119473861/ref=nodl_ https://www.amazon.com/Bitcoin-Standard-Decentralized-Altern...
- IdeasVentured 7y ago
  While these are undoubtedly interesting reads, it should be noted that stock to flow as a predictive model is inherently flawed in that the demand side is not taken into account. There are many who like the model though, so well worth a read. It's also led to interesting efficient market hypothesis discussions which are worth looking into, I would recommend reading some of Nic Carter's work. Edit: 'not taken into account' is probably the wrong way to say it, rather it is assumed.
  - xiphias2 7y ago
    Inherently flawed compared to what model? Have you cross checked-it with other models? I think it's amazing how well a simple model with just 2 variables can explain the difference between Bitcoin price movements in the first few years and later years. Time based models are so much worse that it's crazy. I don't know any model that comes even close to it. Anyways stock-to-flow predicts that for a halving of money issuance the demand for the asset as expressed in market cap will be 8x. If course market cap is a strange and not perfect metric for demand, but that's still the best we have for comparing assets and asset classes.