The Bold New Prediction
In a recent blog post, analyst PlanB has thrown the crypto world into a frenzy by unveiling his latest Bitcoin price model. The prediction? A staggering average price of $288,000 for Bitcoin (BTC) within this calendar year. That’s right! It’s not a typo—$288K! So, grab your sunglasses because we might need shades for that glowing price!
Understanding the S2FX Model
PlanB’s fresh calculations are based on the Stock-to-Flow (S2F) model, now reincarnated as the S2FX model. This iteration adds a twist by incorporating both gold and silver into the mix. Imagine a three-way dance party where BTC, gold, and silver are the headliners, and the world is watching with bated breath!
How Does It Work?
The S2F formula calculates the market value based on the availability of new Bitcoins that miners release into circulation against the existing supply. This economic principle could have your stockbroker rolling his eyes thinking about all those years of studying but hey, cheers to a good cocktail party conversation!
Charting Bitcoin’s Growth
Despite the rollercoaster ride that Bitcoin has been on—including a 60% drop last month—PlanB’s model continues to chart Bitcoin’s journey with remarkable accuracy. This updated S2FX model has nearly tripled the previous prediction of $100,000 between 2020 and 2024, now boldly stating that BTC values could soar to an astounding $288,000!
Clusters: The New Trend in Bitcoin Valuation
PlanB has introduced the idea of “clusters” for Bitcoin as it evolves between various use cases. According to him, Bitcoin has been classified through different narratives:
- Proof of Concept
- Payments
- E-gold
- Financial asset
It’s like picking the right outfit for your metaphorical crypto prom. And guess which cluster is the prom queen? The financial asset cluster, which boasts a market value of $114 billion!
Critics and the Debate Continues
Not all are onboard this Bitcoin express train, however. Well-known traders like J0E007 have voiced skepticism over the S2FX model, suggesting the inclusion of more assets like Bitcoin SV (BSV) to deepen the analysis.
Adding fuel to the fire, Ethereum co-founder Vitalik Buterin has also expressed doubts. Are they right to be cautious? Is the price already priced in before the upcoming halving? That’s the million-dollar question.
