Vitalik Buterin criticized S2F prediction model

What’s new? Ethereum co-founder Vitalik Buterin criticized the Stock to Flow (S2F) model for predicting the bitcoin rate created by anonymous crypto analyst PlanB. According to him, this financial instrument is harmful because it gives a false sense of certainty that the price of the asset will rise. “Stock-to-flow is really not looking good now,” Buterin noted on Twitter, attaching to the post a chart of PlanB’s previous prediction that suggested the BTC rate would rise to $100 000 by mid-2022.

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

The S2F model for predicting the bitcoin rate measures the relationship between the available stock of the asset and its production volume.

PlanB’s reaction. Buterin’s tweet was a reaction to a post by Anthony Sassano, an investor and co-founder of EthHub, an education resource, in which he also criticized the S2F model:

“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.”

An anonymous crypto analyst responded to Buterin by stating that “people are looking for scapegoats for their failed projects or wrong investment decisions.”

After a crash aome people are looking for scapegoats for their failed projects or wrong investment decisions. Not only newbies but als "leaders" fall victim to blaming others and playing the victim. Remember those who blame others and those who stand strong after a crash. https://t.co/4nJdHq84pm— PlanB (@100trillionUSD) June 21, 2022

On November 10, 2021, PlanB predicted that the bitcoin rate would rise to $500 000 by early 2022. He back then claimed that, according to his S2F model, the price of the first cryptocurrency could rise to $100 000 by the summer of 2022. On May 4, PlanB adjusted its prediction for bitcoin to $55 000.

On June 18, the price of the first cryptocurrency fell below $20 000 for the first time since December 2020. In addition, for the first time in BTC history, its exchange rate fell below the previous cycle high. As of June 21, 12:50 UTC, BTC is trading at $21 117, having added 2,75% in price in 24 hours, according to Binance.