What is Stock to Flow all About?

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Stock to flow is one of the most useful indicators of all time for predicting the price action of Bitcoin. The Stock to flow model of Bitcoin was first conceptualized by an anonymous trading genius, under the pseudonym "Plan B." The stock to flow model also works incredibly well within the commodity markets.

What is Stock to Flow all About?

Stock-to-flow is a concept which was developed by A former institutional investor with 25 years’ experience in financial markets, who goes by the pseudonym “Plan B” in order to protect his identity. Plan B’s stock-to-flow prediction model is considered to be one of the most remarkably accurate Bitcoin prediction models ever created, and is still proving its accuracy to this day.


Killer Whale utilizes the stock-to-flow Bitcoin model for a variety of strategies, such as Gain BTC . This strategy is perfect for users who wish to gain the greatest amount of Bitcoin by utilizing the algorithmic trading of currency pairs.


What is Stock to Flow

Stock to Flow is a measurement of market conditions. The purpose of a stock to flow chart is to measure the difference between the amount of an asset – which has already been accumulated – compared to the value of the same asset, which is currently being accumulated. The stock to flow model of Bitcoin is one of the easiest to predict.

Because there is a finite amount of Bitcoin tokens available, the stock to flow model for Bitcoin will eventually reach a point when all the supply or “stock” of Bitcoin has been mined. The “flow” of Bitcoin which can be mined, will eventually drop to zero.


What Does the Bitcoin Stock to Flow Model Look at

Similarly to both gold and silver, there are massive stockpiles of Bitcoin sitting in various wallets, which are not going anywhere for the time being. There is also new Bitcoin being mined every day, in the same way that gold and silver are continually being mined. The Bitcoin which has been mined and stockpiled are represented as the “stock” within the equation, and the Bitcoin which is currently being mined corresponds to the part of the equation which is represented as the “flow.”

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Conclusion

The stock to flow model is an effective way to consider the value of assets such as Bitcoin, gold, and silver. The stock to flow model can also be applied to any other future assets, which may become finite resources. Currently the stock to flow model is a highly effective tool for calculating the prospective price actions of Bitcoin. Given how the price to flow model has represented the price action of Bitcoin in the past; we can gather that this trend will continue to happen in the days, months, and years to come!


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