Vitalik Buterin laughed at the bitcoin stock-to-flow model

As Bitcoin has plummeted in the last few weeks, the popular stock-to-flow model has become a major topic of discussion. Co-founder Etherea used the recent market crash as an opportunity to protest the aforementioned bitcoin model, which deviated significantly from its price forecasts. The creator of S2F reacted quickly.

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Vitalik Buterin does not agree with the bitcoin stock-to-flow model

The stock-to-flow (S2F) model and its variations, developed and published several years ago by the popular cryptanalyst on Twitter, PlanB, predict the future price of BTC based on the size of existing stocks and the annual inflow of newly generated BTCs into the market.

It has attracted countless supporters as it predicts massive primary cryptocurrency prices, many of which have been met. However, the model began to make a mistake at the end of last year, as it predicted $ 100,000 by December, which was far from the case.

In addition, it predicts BTC trading in 2022 on a large scale between $ 50,000 and $ 150,000. After recent market declines, when the asset recorded an 18-month low below $ 20,000, it is safe to say that it has gone far beyond its upward growth.

S2F also has a decent share of critics, one of the most important was Vitalik Buterin, who yesterday this model fired and called it an "epic failure."

The 'Stock to flow' model is such an epic failure that PlanB should delete its account. He won't do it, because unfortunately he still has 1.8 million followers who devour all his hopium every day.

Furthermore, Buterin was a little more diplomatic with his choice of words:

Stock-to-flow doesn't really look good right now.

I know it is rude to ridicule, and so on, but I think that financial models that give people a false sense of security and a predisposition to keep increasing are harmful and deserve all the ridicule they receive.

Before long, the creator of S2F joined the conversation and said:

After the crash, people are looking for scapegoats for their failed projects or wrong investment decisions. Not only novices but also "leaders" fall victim to blaming others.

In an earlier tweet, however, PlanB admitted that the model had gone well for three years (until March 2022), but had since deviated from its trajectory. Analyst therefore saidthat he draws two possible conclusions from the current situation - "either BTC is extremely undervalued and will return soon, or S2F will be less useful in the future."

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