Tesla’s Investment Puts Bitcoin Market Cap En Route to $1tn

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When PlanB released its widely-circulated bullish paper, titled “Modeling Bitcoin Value with Scarcity,” in 2019, he raised many eyebrows for predicting a $1 trillion market valuation for the world’s first truly decentralized cryptocurrency. In retrospect, PlanB noted that certain precious metals, such as gold, have historically maintained a monetary role because of their costliness and limited supply rate. He then applied the same argument to Bitcoin, which becomes more valuable as a preprogrammed algorithm reduces its supply by half every four years to mint 21 million units ultimately. S2F That conceives the Stock to Flow (s2F) model, which is the ratio between Bitcoin’s current and active supply. PlanB plots the S2F against the US dollar market capitalization alongside two arbitrary SF data points for silver and gold. The paper concludes that Bitcoin’s price would rise due to its periodically decreasing supply against an abundant dollar. Bitcoin S2F model shows the…

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