Ethereum’s co-founder and creator, Vitalik Buterin, who recently aired his opinion against the PlanB’s stock-to-flow model Bitcoin price forecast. He stated that he understands that halving has effects on Bitcoin’s price before and during the event, however, he maintained that a post-halving price surge won’t be because the reward of miner got slashed.
Speaking further, he related how Bitcoin post halving price rise happens, citing 2016 halving as an example. Vitalik said the last time Bitcoin surged to its all-time high in 2017, it was almost halfway point between 2016 and 2020 halving. Thus, it may take Bitcoin another 2 years to attain another peak, especially if history repeats itself.
PlanB’s Stock-To-Flow Model Bitcoin Price Forecast
PlanB’s stock-to-flow model is a ratio that measures a commodity’s outstanding stock against fresh market inflows, this model has been used to predict Bitcoin’s astronomical post-halving price rise.
Although some Bitcoin investors believe solely in this model as a mathematical proof that confirms Bitcoin will rise after halving,” there are some Bitcoin lovers who believe that halving itself is already “priced in”.
PlanB the originator of stock-to-flow in the crypto world had earlier predicted that Bitcoin price will skyrocket to $288,000 by 2024, the model had buttressed his predictions by pointing out that the price of Bitcoin will skyrocket post-halving due to the fact that a small supply shock will be experienced in the market.
PlanB had maintained that Bitcoin can be compared with commodities such as gold and silver whose values are tied to their scarcity and the fact that previous halving had caused a notable rise in the Bitcoin price is an attestation.
Buterin earlier opined he dissents the S2F model on Bitcoin price forecast. He claimed that he has not believed in the theory of the forecast. However, Buterin added that he does not believe that the incoherency between Bitcoin price hike and halving is a reason to disapprove the S2F model.
The co-founder of Ethereum further said the theory that halving creates a hike in BTC price is falsifiable.
PlanB, in a response to Buterin’s dismissal of his theory, argued that the average price is more important as peaks are a result of “greed and fomo”.
Mixture of excitement and anxiety is being experienced presently in the cryptocurrency community as investors anticipate for a massive increase in Bitcoin price, which has not been forthcoming till this moment. Nevertheless, the crypto community will continue to wait patiently as they keep on guessing for a spike at some point within the next four years.
