Ethereum co-founder, Vitalik Buterin, said that he disagreed with Bitcoin stock-to-flow (S2F). This stock-to-flow Bitcoin was published by pseudonymous Dutch analyst PlanB back in March 2019.
The “halvings cause BTC price rises” theory is unfalsifiable:
Was the peak before the halving? Then it “rose in anticipation of the halving”
During? “Because of the halving”
After? “Because of…”The last $20k peak was near the halfway point between the 2016 and 2020 halvings. pic.twitter.com/dhVxhmECQS
— vitalik.eth (@VitalikButerin) June 14, 2020
The Bitcoin S2F model predicts that the price is expected to rise significantly after each reward cut because it becomes more scarce. In fact, Bitcoin’s annual inflation rate is now lower than gold, making Midas touch a run for its money.
Vitalik Buterin admits that there is no coherent correlation between Bitcoin quadrennial supply cuts and price spikes is not sufficient enough to disprove the model.
According to Buterin, the inconsistency of Bitcoin price raises makes the popular theory ‘unfalsifiable ‘.
The 50% reduction in rewards for Bitcoin miners withdrew to 6.25 BTC on May 11 has generated interest in seeking record-breaking.
It is often believed that this preprogramming event so far has led to significant price increases. From July 2016 to May 2019, BTC increased by 1,250 percent. Previously, it soared nearly 7,000 percent during the first four-year cycle starting in November 2012.
Outside the echo-chamber of the Bitcoin bulls, this model encounters a lot of skepticism. Many people question its viability because it does not meet demand.
Read more:
- Ethereum’s Stock-To-Flow Indicates The Future Rarity And Inflation Of ETH
- BitMEX Exchange Stopped Working Due To A Problem With The Trading Tool But Now Trading Resumed