Plan₿ on Bitcoin’s Stock to Flow

Mr Obnoxious - A podcast by Peter McCormack

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Location: Skype
Date: Tuesday, 1st October
Project: Independent Trader
Role: Bitcoin Quant Analyst

Stock to flow is a metric used to measure the scarcity of an asset. The only asset with a higher stock to flow than Bitcoin is gold. Gold has a stock to flow value of 62, meaning that to produce the same amount of gold currently held in reserve, it would take 62 years of production.

Every 210,000 blocks (~4 years), the amount of Bitcoin rewarded to miners is cut in half. The next halving is set to take place sometime around May 2020 and will see the reward decreased from 12.5 to 6.25 Bitcoin per block (~every 10 minutes).

The reduction in the reward means that miners have less Bitcoin to sell to cover their operational costs and thus less Bitcoin released to the market. Historically, this has led to an increase in the price of Bitcoin and with the next halving and the subsequent drop in emission, Bitcoins stock to flow value will rise from 25 to 50, getting ever closer to gold.

Will this lead to another surge in price and push Bitcoin to the 1 trillion dollar market cap as PlanB's stock to flow model predicts?

In this interview, I talk to PlanB, known for his Bitcoin stock to flow ratio analysis and the author of Modeling Bitcoin's Value with Scarcity. We discuss gold's stock to flow compared to Bitcoin, scarcity, halvings and safe-haven assets.

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Connect with Plan₿:
- On Twitter @100trillionUSD
- On Medium
- On Github

Mentioned in the interview:
- The Bitcoin Standard
- Modeling Bitcoin's Value with Scarcity by Plan₿
- Bakkt Bitcoin Futures
- Hyperinflation in Germany
- Hyperinflation in Zimbabwe
- Hyperinflation in Venezuela
- The Halving
- The Bitcoin Whitepaper
- The Bullish Case for Bitcoin by Vijay Boyapati

Other relevant WBD podcasts:
- WBD153: Trace Mayer on Claiming Your Monetary Sovereignty with Bitcoin
- WBD140: Raoul Pal on Bitcoin as a Global Recession Hedge
- WBD130: Bitcoin is More Than a Financial System with Zac Prince & Jeremy Welch
- WBD127: Saifedean Ammous on Understanding Bitcoin Economics
- WBD104: Tuur Demeester on Why Bitcoin is in Heavy Accumulation
- WBD055: Vijay Boyapati's Bullish Case for Bitcoin
- WBD032: Tuur Demeester on the Looming Debt Crisis and Central Banks for Bitcoin

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