Vitalik Buterin, the Ethereum co-founder, has taken to Twitter to criticize the Stock-to-Flow (S2F) model, which became popular on Crypto Twitter for Bitcoin thanks to a pseudonymous analyst from the Netherlands named PlanB.
Stock-to-flow is really not looking good now.
I know it's impolite to gloat and all that, but I think financial models that give people a false sense of certainty and predestination that number-will-go-up are harmful and deserve all the mockery they get. https://t.co/hOzHjVb1oq pic.twitter.com/glMKQDfSbU
— vitalik.eth (@VitalikButerin) June 21, 2022
Bitcoin S2F was slammed by Vitalik
Buterin, a prodigy IT engineer, stated that S2F and other financial models give average investors a false feeling of certainty and destiny when it comes to asset prices (we are talking about Bitcoin in this particular case).
As a result, Vitalik reasoned, these models deserve all of the scorn they get from consumers and reviewers. Furthermore, he remarked that the aforementioned model is not looking good right now.
Colin Wu, a Chinese crypto writer, and blogger reminded the audience that the Bitcoin Stock-to-Flow model performed admirably from March 2019 to March 2022, when Bitcoin traded at $4,000 and $45,000, respectively.
PlanB expects that Bitcoin will eventually reach $100,000, most likely in 2023
Mati Greenspan, former eToro chief analyst and currently head of Quantum Economics, joked with Vitalik that he may be stopped by PlanB since the analyst had previously blacklisted Mati, presumably because Greenspan had been criticizing his charts and BTC price forecasts.
The move to the Proof-of-Stake protocol as part of the Ethereum 2.0 rollout, which is scheduled for this summer, implies that the generation of new Ethereum coins will be decreased by 99 percent since miners will be out of work and new coins will be created via staking.