Invest in Bitcoin (BTC) with this new PlanB inspired trading bot!
S2F measures scarcity
PlanB is an anonymous Dutch analyst who has 25 years of experience in the financial markets with a background in quantitative finance. As his website states, he is fascinated by modeling risk & return and is famous for his S2F Bitcoin model.
Stock-to-flow is a calculation that can be made with any asset class, and it can measure the abundance of a resource. The model looks at how much of an asset currently exists (stock) is produced every year (flow). With these two figures, you can calculate the S2F ratio and compare different resources and their scarcity. The higher the S2F ratio of a resource is, the better it should retain its value over time.
As an example, we can look at gold. The amount of gold that has already been mined in the past represents the current stock. The amount of new gold that is mined every year is the flow. We can do the same with Bitcoin; the bitcoin that is currently circulating is the stock, and the amount that Bitcoin miners receive is the flow. PlanB applied this model to Bitcoin to quantify the value of the cryptocurrency. According to his model, Bitcoin could eventually pass the $100.000 mark and past that!
Follow the model like a pro
While the calculation behind PlanB’s models may seem complicated, you don’t need to understand it thoroughly to apply it as a strategy. Bitcoin Booster Bot is a PlanB inspired trading bot that makes it possible to follow the complicated strategy with just one click on a button. Check out the new trading bot in the BOTS app.
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There is no such thing as risk-free trading. It is possible to lose (part of) your stake.