Plan₿ on Bitcoin's Stock to Flow - WBD154
The Peter McCormack Show
Peter McCormack
4.7 • 2.8K Ratings
🗓️ 4 October 2019
⏱️ 58 minutes
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Summary
Location: Skype Date: Tuesday, 1st October Project: Independent Trader Role: Bitcoin Quant Analyst
Stock to flow is a metric used to measure the scarcity of an asset. The only asset with a higher stock to flow than Bitcoin is gold. Gold has a stock to flow value of 62, meaning that to produce the same amount of gold currently held in reserve, it would take 62 years of production.
Every 210,000 blocks (~4 years), the amount of Bitcoin rewarded to miners is cut in half. The next halving is set to take place sometime around May 2020 and will see the reward decreased from 12.5 to 6.25 Bitcoin per block (~every 10 minutes).
The reduction in the reward means that miners have less Bitcoin to sell to cover their operational costs and thus less Bitcoin released to the market. Historically, this has led to an increase in the price of Bitcoin and with the next halving and the subsequent drop in emission, Bitcoins stock to flow value will rise from 25 to 50, getting ever closer to gold.
Will this lead to another surge in price and push Bitcoin to the 1 trillion dollar market cap as PlanB's stock to flow model predicts?
In this interview, I talk to PlanB, known for his Bitcoin stock to flow ratio analysis and the author of Modeling Bitcoin's Value with Scarcity. We discuss gold's stock to flow compared to Bitcoin, scarcity, halvings and safe-haven assets.
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Transcript
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| 0:00.0 | Welcome to the What Bit |
| 0:02.0 | the What Bit the did podcast. |
| 0:05.0 | Hello there from Bedford, |
| 0:08.0 | How are you all? |
| 0:09.0 | I'm busy. |
| 0:10.0 | Very, very busy here. |
| 0:11.0 | Counting down the days to the launch of my new podcast my new show defiance |
| 0:16.0 | the target is to get it out on Sunday but I am at the mercy of Apple waiting for them to approve it so |
| 0:22.3 | yes if they approve it in time it should be |
| 0:24.0 | out Sunday so looking forward to that. Anyway welcome to the What Bitcoin did |
| 0:28.0 | podcast which is brought to you by the mighty Krakhan without doubt the most |
| 0:31.6 | trusted place to buy and sell Bitcoin. I am your |
| 0:34.5 | host Peter McCormack and today I've got an interview with Plan B discussing |
| 0:38.3 | Bitcoin's stock to flow but before that I do have a message from my amazing show sponsors and it's time to welcome my new sponsor |
| 0:46.0 | Wire and a big thanks to my buddy Michael Dunworth for sponsoring the show. |
| 0:50.3 | I've got to know Michael over the last year every time I'm out of San Francisco. |
| 0:54.0 | He comes out and meets me, buys me a beer, great lad. So thanks Michael. |
| 0:58.0 | So whether you are a solo developer or a large team, if you are looking to simplify your user onboarding and |
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| 1:10.3 | talk to Wire. Since 2013, Wire has focused on taking care of the heavy lifting in terms |
| 1:16.1 | of compliance, payments, liquidity, so you can focus on building your core offering. |
| 1:22.1 | Your idea could be the next killer app so do not let the |
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