Summary:
- Ethereum’s Vitalik Buterin has criticized Bitcoin’s stock-to-flow model by PlanB.
- Vitalik explains that the stock-to-flow model is not looking good, and financial models that give people false hope deserve all the mockery they get.
- Mr. Buterin also asked the crypto community to remember all who supported the Bitcoins stock-to-flow model and those who mocked it back when it looked accurate.
Ethereum’s co-founder, Vitalik Buterin, has criticized the longstanding Bitcoin stock-to-flow model introduced by PlanB in mid-2019.
Financial Models That Give False Certainty are Harmful, Deserve all the Mockery They Get – Vitalik.
According to Vitalik, Bitcoin’s current market drawdown has resulted in the stock-to-flow model ‘really not looking good now.’
In addition, Vitalik explained that financial models that ‘give people a false sense of certainty and predestination that number-will-go-up are harmful and deserve all the mockery they get.’
Mr. Buterin’s insights on the invalidation of the popular Bitcoin stock-to-flow model can be seen in the following tweet.
Stock-to-flow is really not looking good now.
I know it’s impolite to gloat and all that, but I think financial models that give people a false sense of certainty and predestination that number-will-go-up are harmful and deserve all the mockery they get. https://t.co/hOzHjVb1oq pic.twitter.com/glMKQDfSbU
— vitalik.eth (@VitalikButerin) June 21, 2022
Remember All Who Supported the Bitcoin S2F and Those Who Mocked it – Vitalik.
In a follow-up tweet, Vitalik requested the crypto community to remember all who supported the Bitcoin stock-to-flow model and those who mocked it ‘even back when it looked like it was accurately describing the trendline.’
Bitcoin’s Stock-to-Flow Model is an Epic Failure – sassal.eth
Vitalik’s criticism of the Bitcoin stock-to-flow model was in response to another tweet by crypto-community member @sassal0x, who described it as an ‘epic failure.’ He said:
The ‘Stock to flow’ model is such an epic failure that PlanB should just delete his account He won’t though because he sadly still has 1.8 million followers who eat up all of his hopium garbage on a daily basis.
PlanB Responds to Vitalik Buterin’s Comments on the Stock-to-Flow Model.
The inventor of the Bitcoin stock-to-flow model, PlanB, has since responded to Vitalik’s criticism via Twitter by stating that people often look for scapegoats after a market crash. He said:
After a crash some people are looking for scapegoats for their failed projects or wrong investment decisions. Not only newbies but also “leaders” fall victim to blaming others and playing the victim. Remember those who blame others and those who stand strong after a crash.