Re: Stock-to-Flow Model: Modeling Bitcoin's Value with Scarcity
One of the most important tweet bt @100trillionUSD answering the most debated question: Why isn't demand factored in the Stock to Flow model?
https://twitter.com/100trillionUSD/status/1268610182793228288?s=20
Quote
Some say S2F(X) model must be wrong because #BTC BTC price is determined solely by scarcity (supply) and demand does not play a role.
However Nobel prize winning Capital Asset Pricing Model (CAPM) determines asset returns solely based on risk (volatility, dd) .. no demand, no supply
However Nobel prize winning Capital Asset Pricing Model (CAPM) determines asset returns solely based on risk (volatility, dd) .. no demand, no supply
 |  |
https://twitter.com/100trillionUSD/status/1268610182793228288?s=20