The Stock/Flow (S2F) model arose in March 2019, and according to this concept, Bitcoin is able to quickly increase, especially subsequently halving, which will occur in May of this year. But there are critics. Rarity is an important property of bitcoin. What is the S2F model talking about? It is based on Nick Szabo’s concept of Bitcoin rarity. It has an impact on the price of Bitcoin according to the effects of the network – the ratio of the entire volume available to the asset (bitcoin) and available for sale, to the volume of bitcoins that appear in the financial period, that is, per year.
Bitcoin Mining is efficient and attracts the giants of the investment industry, the Bitcoin hashrate shows a new maximum, 126.13 exhash per second Meanwhile, given the particular nature of this asset, an attempt to manipulate the price of bitcoin downward may be ineffective, and in the direction of growth – here such players will simply follow the dynamics of the market in accordance with the S2F model. According to BayernLB estimates, halving will lead to an increase in the cost of Bitcoin to 90 thousand dollars. The increase in the number of opportunities for institutional investors to invest in bitcoins may, according to Milne, become a factor in the additional increase in the cost of bitcoins.