The Ethereum co-founder used the recent market crash as an opportunity to lash out at Bitcoin’s stock-to-flow model, which has seriously deviated from its price predictions. The creator of S2F responded quickly and did not hold back.

Buterin and ETH against S2F

Developed and published a few years ago by a popular crypto analyst who goes by the Twitter handle PlanB, the stock-to-flow model and its variations predict the future price of BTC based on the size of existing reserves (reserves) and the annual supply of bitcoins in the market (flow).

He attracted countless followers as he predicted massive prices for bitcoin, many of which came true. However, the model started to go wrong late last year as it forecast $100K for December which did not happen.

Furthermore, it sees BTC trading in a wide range between $50,000 and $150,000 by 2022. Following recent market declines in which the asset posted an 18-month low below $20,000, it is safe to say that the model has broken out of its uptrend. predictions

S2F also had its fair share of criticism, one of the most prominent being Vitalik Buterin. Earlier today, he supported one of the top Ethereum developers who criticized the model, calling it an “epic fail.” Although Buterin was more diplomatic with his choice of words, he also discredited the model.

PlanB’s response

It didn’t take long for the model’s creator to jump into the conversation, saying that “leaders” also tend to “blame others and play[ing] the victim” during and after a market crash.

In a previous tweet, PlanB admitted that the model had a “hot streak” for three years (until March 2022), but has veered off track as of now. So the analyst said there are two possible takeaways from the current landscape: “either BTC is grossly undervalued and will recover soon, or S2F will be less useful in the future.”

Featured image courtesy of Forbes

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This post Vitalik Buterin Mocks Bitcoin’s Stock-to-Flow Model, PlanB Responds

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