Stock-to-flow Model Proponents “Claim Victory” in 2020: Predicts Legal Expert Jake Chervinsky


  • Stock-to-flow model puts predicted market value for Bitcoin after the halving at $1 trillion dollars
  • PlanB’s updated model puts the BTC price lower at $50,000 from $100,000
  • Last decade brought BTC to only 1% of the world, the next will bring it to half of the world – on-chain analyst Willy Woo

Jake Chervinksy, the General Counsel at Compound Finance has made a number of predictions for the Bitcoin.

Although they are pretty generic what with the Bitcoin halving to occur and numbers to go up significantly which could either be before the halving or after, he sees stock-to-flow proponents to “claim victory.”

The stock-to-flow model was first used by PlanB to determine the Bitcoin price. In March 2019, the analyst explained that gold has the highest SF at 62 and silver has 22, which makes them monterey goods.

Bitcoin currently has an SF of 25 that will double to 50 with this halving in May 2020 that will put it very close to gold.

This model PlanB said at that time puts the predicted market value for Bitcoin after the halving at $1 trillion dollars. This means one BTC would be worth about $55,000 which is to be known if it will be in one or two years after the halving.

In October last year, the analyst said Bitcoin should be over $100,000 before Christmas 2021.

However, the updated model puts the price lower at $50,000 as he explains,

“I used the original formula btc=0.4*sf^3 fitted on monthly data, with lower 2020-halving prediction ($50k). My personal favorite formula is btc=0.18*sf^3.3 fitted on yearly Oct data, with higher prediction ($100k). A matter of taste IMO: conservative or aggressive.”

Once stock-to-flow proponents get a win, Chervinksy expects the “detractors claim correlation & cite confounding variables.”

However, this argument he projects to keep on going on and then have a “rinse and repeat in 2024,” when the next halving will occur.

In the longer term, commentators have been expecting BTC to hit a million. No, matter the top BTC will hit, even after eye-popping 9,000,000% gain in the past decade, Bitcoin has only started.

As on-chain analyst Willy Woo says, “This last decade brought Bitcoin use from a handful of cypherpunks to 1% of the world. The next decade will bring us to half of the world.”

He also pointed to an adoption study with 35 million user accounts with Coinbase which has been the “lower bound.” And this was a year ago.

Bitcoin, he says does a 2x per year as a baseline and 4x in bull markets and also 2x growth per year.

Live Bitcoin (BTC) Price:

1 BTC/USD =$50,213.6883 change ~ -1.51%

Coin Market Cap

$936.2 Billion

24 Hour Volume

$20.26 Billion

24 Hour VWAP

$50.88 K

24 Hour Change

$-757.18

Get Daily Headlines

Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

What to Know More?

Join Our Telegram Group to Receive Live Updates on The Latest Blockchain & Crypto News From Your Favorite Projects

Join Our Telegram

Stay Up to Date!

Join us on Twitter to Get The Latest Trading Signals, Blockchain News, and Daily Communication with Crypto Users!

Join Our Twitter

Add comment

E-mail is already registered on the site. Please use the Login form or enter another.

You entered an incorrect username or password

Sorry, you must be logged in to post a comment.
Bitcoin Exchange Guide