Cryptocurrency Q&A What is an example of a Stock-to-Flow ratio?

What is an example of a Stock-to-Flow ratio?

Sat Jan 11 2025 | 7 answers 1504
I'm trying to understand the Stock-to-Flow ratio. Could someone provide me with an example of this ratio to help me grasp the concept better? What is an example of a Stock-to-Flow ratio?

7 answers

Mon Jan 13 2025
The video discusses the Stock to Flow model, which is a method used to predict the price of Bitcoin. This model is based on the idea that the scarcity of Bitcoin can drive up its value.

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Mon Jan 13 2025
In the video, the concept of "supply" is explained. Supply refers to the limited number of Bitcoins available, which is what makes the cryptocurrency valuable. The model expresses this value in a ratio known as the Stock to Flow ratio.

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Mon Jan 13 2025
The Stock to Flow ratio is calculated by dividing the stock of Bitcoin by its flow. The stock refers to the total amount of Bitcoin that has been mined, while the flow represents the new Bitcoin that is being mined each year.

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Mon Jan 13 2025
The video emphasizes the importance of the Stock to Flow ratio in predicting the price of Bitcoin. As the ratio increases, the scarcity of Bitcoin also increases, which can lead to a higher price.

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Mon Jan 13 2025
The video titled "Stock to Flow - A model to predict Bitcoin’s Price?" by Whiteboard Crypto on YouTube was uploaded on October 1, 2021.

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