My Interpretation of Bitcoin’s Stock to Flow Model

There are many valuation models for Bitcoin. Some are based on fundamentals like much of the work done by Chris Burniske in his book, Cryptoassets. Many models are outlined in CoinMetrics work starting, here. I think relating to Bitcoin as a network and measuring the network’s usage and utility is key. However, a savvy investor cannot overlook the data from this price regression model. It’s called the Stock to Flow Model for Bitcoin.

Graph by Plan B, posted on Twitter but available for public use from his GitHub.

CIO at Tradecraft Capital & Author of Crypto Asset Investing in the Age of Autonomy, published by Wiley this December

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