Bitcoin’s stock-to-flow (S2F) is a ratio that measures the relationship between a asset’s current supply and its flow into the market. In simple terms, S2F is calculated by dividing an asset’s current supply by its annual production.
Bitcoin’s S2F ratio is currently 25. That means that, for every 25 bitcoins that exist today, only 1 additional bitcoin will be mined and enter circulation each year.
This relatively low rate of new supply entering the market is what gives Bitcoin its scarcity and potential value as an investment.
NOTE: WARNING: Investing in cryptocurrency is highly speculative, and the current stock-to-flow of Bitcoin may not be an accurate predictor of future value. It is important to do your own research, understand the risks associated with investing in cryptocurrency, and make informed decisions before investing.
In comparison, Gold’s S2F ratio is around 62. That means there are currently 62 units of gold for every 1 unit of gold that is mined each year.
Gold’s higher S2F ratio indicates that it is scarcer than Bitcoin, which could make it a more valuable investment in the eyes of some investors.
While the S2F model can be a helpful tool for assessing an asset’s potential value, it is important to remember that it is not a perfect predictor of future price movements. Many other factors, such as global economic conditions and investor sentiment, can also affect an asset’s price.
The current stock-to-flow of Bitcoin is 25. This relatively low rate of new supply entering the market is what gives Bitcoin its scarcity and potential value as an investment.
6 Related Question Answers Found
Bitcoin is a cryptocurrency and a payment system, first proposed by an anonymous person or group of people under the name Satoshi Nakamoto in 2008. Bitcoin is a decentralized peer-to-peer electronic cash system that does not rely on any central authority like a government or financial institution. Transactions are verified by a network of nodes and recorded in a public distributed ledger called a blockchain.
Bitcoin is a cryptocurrency, a form of electronic cash. It is a decentralized digital currency without a central bank or single administrator that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries. Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain.
Bitcoin is a digital asset and a payment system invented by Satoshi Nakamoto. Transactions are verified by network nodes through cryptography and recorded in a public dispersed ledger called a blockchain. Bitcoin is unique in that there are a finite number of them: 21 million.
What is Bitcoin? Bitcoin is a digital asset and a payment system invented by Satoshi Nakamoto. Transactions are verified by network nodes through cryptography and recorded in a public dispersed ledger called a blockchain.
The Biggest Bitcoin Exchange is a topic of great debate. Some people believe that it is a specific exchange, while others believe that it is the collective group of all exchanges. There are many different ways to measure the size of an exchange, but the most common metric is trading volume.
When it comes to Bitcoin, the interest rate is a key factor in understanding how the cryptocurrency works. Unlike fiat currencies, which are regulated by central banks, Bitcoin is not controlled by any one entity. Instead, it relies on the network of users who contribute their computing power to verifying transactions on the blockchain.
