- PlanB, the pseudonymous creator of the Bitcoin stock-to-flow (S2F) model is not perturbed about Bitcoin’s short-term price.
- According to him, it is very exciting to observe whether it reaches $100,000 in the next two years or even next month.
All other things being equal, Bitcoin has had a very good year as investors resorted to it as a hedge against inflation that has been quite high in 2021. The asset price recorded an all-time high of near $69,000 in November before taking a nosedive. Some experts do not expect Bitcoin to bounce back. One of those is Carol Alexander, professor of finance at Sussex University. He predicts that Bitcoin will fall to as low as $10,000 in 2022.
If I were an investor now I would think about coming out of bitcoin soon because its price will probably crash next year.
While this has created fear among some crypto investors, PlanB, the pseudonymous creator of the Bitcoin stock-to-flow (S2F) model is not perturbed. According to him, Bitcoin will hit at least $100,000 in this Bitcoin halving cycle, and $1 million in the preceding halving cycle.
Related: PlanB unveils Bitcoin’s “worst-case scenario for 2021”, – $135,000 by December
Speaking in an interview with Madelon Vos, analyst and YouTuber, PlanB stated that he is not concerned about the short-term price of Bitcoin as he has a long-term view of the asset. According to him, it is very exciting to observe whether it reaches $100,000 in the next two years or even next month.
I am actually already working on the next cycle because I really don’t care whether it stays stuck on $50,000 or $100,000 or $288,000.
Bitcoin Stock-to-Stock (S2F) model still valid – Plan B
PlanB further explained that the Bitcoin market goes beyond its short-term price, and his expectation is currently fixed on the phase of its development. According to him, investors view Bitcoin as being in phase 5, a point where heavyweight institutional investors like Michael Saylor’s Microstrategy adds it to their treasury. In as much as this creates a positive environment around Bitcoin to grow even higher, it also takes the asset to a geopolitical playing field.
Speaking on the hyperbitcoinization, PlanB stated that it is not the right time to open this discussion. He expects this to be a topic for discussion when the asset overtakes the $1 trillion cap of gold and the $1 trillion cap of the real estate market.
While the S2F model, a model created to help him trade without involving emotions, he has come under constant criticism recently, PlanB believes that it is still very much operational. When asked whether he has trust in the S2F model, he said “yes”.
Using the floor model, he earlier predicted that Bitcoin will hit $100,000 before the year ends. With just 4 days left to enter a new year, he softened his stance on that prediction.
If it fails, it fails. If it works, then it works.
He also stated emphatically that the S2F model will continue to remain valid as long as the Bitcoin price moves in a linear path, where the price rises as demand increases in relation to the decrease in supply.
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