UK’s Largest Newspaper reports on Bitcoin's limited supply
- The Sun is the most popular newspaper in the UK with 33 million readers.
- The stock-to-flow metric shows that BTC’s price can spike up to $1 million in less than a decade.
The Sun, the most popular newspaper in the UK, recently published an article on Bitcoin’s limited supply for its 33 million readers. The report notes that 85% of all BTC has been mined and even includes a viral tweet by popular crypto trader “Rhythm,” who said: “scarcity is about to kick in.”
The Sun also analyzed Bitcoin’s stock-to-flow ratio:
“Previous analyses have suggested that the coin’s value could jump as it becomes more scarce over time. Trusted crypto-analyst PlanB recently calculated that the coin could ten times its current worth to around £82,000 per Bitcoin by March 2020.
Others are less optimistic and argue that a recent value boom fed by Facebook’s announcement that it is creating its own cryptocurrency will taper off by 2020.”
Stock-to-flow is a metric used to forecast the price of assets like gold. When this is applied to Bitcoin, it indicates that BTC’s faltering supply could trigger a rally and spike the pice up to $1 million in less than a decade.
A Twitter account going by “PlanB” tweeted:
"This is becoming scary: using Oct instead of Dec data, Stock-to-Flow model fit improves to 99.5% R2! Model error was mainly caused by Nov2013 and Dec2017 ATH, so sampling without ATH gives less noise. Predicted #bitcoin prices increase: $100K (2020+), $1M (2024+), $10M (2028+)..."
BTC/USD daily chart
Currently, the price of BTC/USD has fallen from $11,850 to $11,656 this Tuesday. BTC/USD has had seven straight bullish sessions, wherein the price went up from $9,500 to $11,850, charting a 25% increase in valuation. The price is trending above the 20-day simple moving average (SMA 20), SMA 50 and SMA 200 curves.
Author
Rajarshi Mitra
Independent Analyst
Rajarshi entered the blockchain space in 2016. He is a blockchain researcher who has worked for Blockgeeks and has done research work for several ICOs. He gets regularly invited to give talks on the blockchain technology and cryptocurrencies.
