Hello Bitcointalkers.
So while doing research, I came across a model known as the Stock to Flow model which can be used to determine the value of an asset like Bitcoin  in long term... And so I've decided to share so other beginners can learn from this too.

The Stock to Flow model is a popular framework that is used to estimate Bitcoin price on the long run. It is a model that was first applied to gold, silver e.t.c and it suggests that the value of a scarce asset is determined by the stock(total existing supply) relative to its flow ( the amount of new supply produced every year).

It is calculated as this:
 Stick to flow ratio= Total existing supply(stock)/annual new supply(flow).

A high ratio shows that an asset is scarce
A low ratio shows that the assets is in abundance
 The whole idea is that as an asset becomes more scarce, it value increases.


Bitcoin is very suited for this model because it's supply is predictable and very transparent.. Another contribution to this is the Halving where the number of new Bitcoins created in each block is cut in half every four years. This Halving process helps to give the stock to flow a higher ratio which means that Bitcoin is becoming scarce and so its value is increasing...