The popular cryptoblogger Plan B in the off the Chain podcast explained why, according to the Stock to Flow (S2F) model, institutional investor money would push Bitcoin to $ 100,000 by the end of 2021.
Anthony Pompliano, co-founder of Morgan Creek Digital, found out that behind the pseudonym Plan B, he was hiding a member of a team of institutional investors with $ 100 billion worth of assets under management, a degree in financial mathematics that had seen the 2008 crisis from its epicenter.
New episode is live with @ 100trillionUSD!
He reveals that he is part of an investment team that manages approximately $ 100 billion, while also explaining how the stock-to-flow price model that he invented is getting more accurate over time.
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In those years, the 40-year-old Dutchman, in response to unprecedented measures by central banks, began to search for uncorrelated assets (a kind of “Plan B”). As a result, since 2015, he came to invest in the first cryptocurrency.
Plan B is convinced that as a connecting bridge between the institutional and the cryptocurrency world, the S2F (Stock-to-Flow) model promoted by him, used by large investors in the gold market, will confirm his BTC forecast of $ 100,000 by the end of 2021. Halving will help to achieve this goal, which will make the first cryptocurrency an even more scarce asset.
“Stock-to-Flow is an attempt to measure the digital scarcity of Satoshi’s invention. Why does S2F work? Because it directly measures scarcity, like gold. The more scarce something is, the more valuable it should be. ”, Explained Plan B.
An additional driver in his view is the network effect. In a conversation with the author of the podcast, the crypto blogger mentioned an increase in the number of exchanges, fiat gateways, derivatives, options, futures, which he also included in the S2F model.
In the light of current events that have led to limited mobility of the population and triggered a sharp market reaction, Plan B remains true to its forecast.
“Do not forget about the quantitative easing – central banks have printed trillions of dollars since the advent of bitcoin. And also about scammers who hold bitcoin even during the period of sharp corrections ”, – crypto enthusiast cited additional arguments.
Recall, ByteTree, an analytical startup, developed an indicator to assess the confidence of miners in market growth, which in January warned of instability in BTC growth at the beginning of the year.
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