In this video, I discuss Bitcoin price targets using stock-to-flow ratios for Bitcoin, as well as Plan B’s stock-to-flow cross asset model.
By calculating the annual production of new Bitcoin by miners, and dividing that number into the existing inventory of Bitcoin, we can calculate Bitcoin’s “stock to flow,” which is a measure of Bitcoin’s scarcity over the next 4 years.
Once we know Bitcoin’s “stock to flow,” we can use it to calculate a potential market cap for Bitcoin, using Plan B’s stock to flow cross asset model. Doing this, we come up with a price target of $296,541 per Bitcoin over the next 4 years.
I also discuss alternate calculations that take into account coins that have possibly been lost forever.
Not investment advice! Consult a financial adviser.
Bitcoin blockchain and miners for beginners:
My favorite Bitcoin data dashboard:
Plan B’s cross asset model for Bitcoin:
View at Medium.com
Matthew Kratter is the author of the Amazon best-seller “A Beginner’s Guide to the Stock Market”:
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