Vitalik Buterin – Co-founder of Ethereum (ETH), doesn't believe the famous stock-to-flow model can accurately predict Bitcoin (BTC) prices.
In an above debate Twitter On February 27, Buterin became the second celebrity to criticize the stock-to-flow (S2F) model – which called for the average Bitcoin price between 2021 and 2024 at $ 100,000. .
Buterin: stock-to-flow forecast “part of 95%”
This model has accurately predicted the growth of Bitcoin price in history, and is currently proposing an average price of about $ 8,600. After trading at more than 20%, Bitcoin plunged within the $ 200 range of the S2F proposed target.
However, for Buterin, stock-to-flow is a prediction model similar to other models.
Discussing articles – referring to specific events of Bitcoin price growth, he stated that most of them were “bullshit articles”.
“Your daily reminder that over 95% of X-event event posts will make cryptocurrencies rise / fall is bullshit,” he wrote.
When specifically asked if stock-to-flow articles would appear under that banner, Buterin replied:
“No, those things are part of 95%.”
The focus of the remaining 5% of articles that Buterin clearly admitted was not disclosed.
Critics dislike accurate historical forecasting tools
Not only the Ethereum founder expressed skepticism about the stock-to-flow model. In a blog post last week, hardware wallet maker Trezor also had problems with the tool.
The special factor that S2F relies on is the Bitcoin halving event in May. This model considers that halving events serve as an important catalyst for growth.
“No need to go around: Using Stock-to-Flow to predict prices is completely pointless,” the article said.
According to Trezor, it is impossible to come up with an appropriate price forecast unless both supply and demand are taken into account.
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According to CoinTelegraph
Translated by ToiYeuBitcoin