Bitcoin’s transaction price reached a new high, and opponents flocked to it. The skeptics range from Nouriel Roubini to Peter Schiff and more.
Although another challenger who challenged the long-term value of cryptocurrencies said that he “didn’t hate Bitcoin like others,” he still spent some time carefully studying PlanB’s stock flow model (S2F) and claimed the most important The valuation model is “defective” and “mathematically unreasonable.”
In an extremely lengthy breakdown, the best-selling author and investor of The New York Times explained why the model did not work and why exuberant investors should not be trapped in the formula’s predictions.
New York Times best-selling author disassembles S2F model item by item
Over the years, condemning or ignoring Bitcoin proved to be wrong, even at a high price. However, opponents are doing everything they can to warn the latest wave of Bitcoin investors , claiming that it is a so-called “scam”, even using the assets of “Ponzi scheme” and “rat poison”.
Investors are not buying these debts, but buying BTC, and expect its valuation to increase based on its set digital scarcity.
There is no such asset as before, but the next closest example is gold. Satoshi Nakamoto designed a cryptocurrency to mimic the specific properties of precious metals.
Analysts use mathematical models to try to determine the long-term value of cryptocurrencies . The most famous and admired theory is the S2F model combined with the pseudonym Plan B.
But the New York Times best-selling author, investor, and gold and silver research expert recently stated that the S2F model is “flawless” and “mathematically unreasonable.”
“Bitcoin will play an important role in the future”
Marin Katusa, the founder of Katusa Research, conducted a detailed and rigorous detailed comparison, providing thousands of words, multiple charts, and a fierce attack on planB’s “Stock-Flow Ratio Model” (S2F).
Katusa is a well-known commodity investor, especially in the oil, gas and “alternative energy” sectors. He also provided insights on how to effectively invest in the gold market.
He began to challenge the papers of cryptocurrency analysts with the statement “I am not a Bitcoin hater”. In fact, in the end, he said that he believes “Bitcoin will play an important role in the future.”
What he is questioning is not Bitcoin, but planB’s “scattered and chaotic” data , even if it is applied to the more stable and familiar asset gold.
The main problem with Katusa regarding the S2F model is that it predicts “infinite market value” and “transforms into infinite price” .
But maybe the best-selling author just misunderstood the long-term potential of Bitcoin? Can the S2F model accurately predict that the cryptocurrency has essentially absorbed all the capital in the world? If this is the case, “unlimited” and higher prices sound mathematically reasonable for cryptocurrencies.
The original text comes from bitcoinist, compiled by Blockchain Knight, the English copyright belongs to the original author, please contact the compiler for Chinese reprint.
