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Bitcoin price is bouncing around the closely watched $20,000 per bitcoin level, down more than 70% from its November high, while ethereum has dropped below $1,000 per ether — wiping out 80% of the network’s value. Top ten cryptocurrency BNB
Now, Ethereum co-founder Vitalik Buterin, who is generally regarded as the project’s spiritual leader, warns that the controversial Bitcoin price prediction model “doesn’t look good right now.”
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“I know it’s impolite to be proud and all of that, but I think financial models that give people a false sense of certainty and pre-destination that a prospect figure is detrimental and deserves all the ridicule they get,” Buterin wrote on Twitter, in response to a tweet by the co-founder. For information site Ethhub Anthony Sasano, who described Stock-to-Flow as a “fiasco”.
The stock-to-flow bitcoin price prediction model, developed by an anonymous financial analyst with the alias PlanB, attempts to calculate the future price of bitcoin based on the current supply relative to the number of additional bitcoins being created. The supply of bitcoin is designed to diminish over time, by a mechanism known as “halving” that reduces the number of new coins produced every four years by 50%.
Stock-to-flow came under fire late last year after bitcoin’s price failed to top $100,000 as PlanB predicted in September, say At that time the price of bitcoin should go up.” [to above] $100,000 or stock to flow is dead.”
The price prediction model shows that the price of bitcoin should trade between $100,000 and $110,000 per bitcoin until 2022 with the latest crypto crash pushing bitcoin below $20,000, casting further doubt on the validity of the model.
Last week, Buterin also criticized the stock-to-flow bitcoin price prediction model, suggesting that the market will price known reductions in the asset supply ahead of time.
‘The ‘halfing theory’ is irrefutable: Did it peak before the halving? Then ‘rose in anticipation of the halving’ during? Because of the “after” half? Near the midpoint between 2016 and 2020, ‘Buterene Spread to Twitter.
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Plan B hit back Against the recent ethereum attack, claiming that the $2 trillion crypto crash has left some “looking for scapegoats.”
“After the crash, some people are looking for scapegoats for their failed projects or bad investment decisions,” the anonymous analyst wrote. “Not only beginners, but leaders also fall victim to blaming others and playing the victim. Remember those who blame others and those who stand strong after an accident.”
The price of Ethereum has suffered an even bigger crash than Bitcoin this year as it struggles with a long-awaited upgrade that will fundamentally change the way the Ethereum network is secured.
Ethereum has been planning for years to switch from Bitcoin’s Proof of Work model to Proof of Stake, a change that will see so-called miners earning new ether in exchange for directing computing power toward the network that has been redeemed by users “staking” their ether.