The model suggests Bitcoin's price hinges on its scarcity, gauged by the stock-to-flow ratio, comparing the amount in circulation to newly mined coins. Higher ratios signify greater scarcity, akin to gold's historical average of 66. After Bitcoin's third halving, its ratio doubled, enhancing its scarcity.
Meanwhile, the Grayscale Bitcoin Trust's recent halving, losing 300k BTC since the launch of spot Bitcoin ETFs, may have a more immediate negative impact on Bitcoin's price.
Im pretty sure btc has always been more scarce.
The gold on this earth that has been mined is still on this earth.
Btc keeps diminishing everytime someone carelessly loses their key. Lol
Sounds fake. I've got way more Bitcoin than gold.
It always has been. No way to know how much gold there is.
I can't help to say this that Bitcoin has always been more scarce than Gold since its birth.
It is obvious that Bitcoin is more scarce than gold.
I love his substack
Ecoinometrics
Always has been
Go ahead and give me all your gold then.
Whoa! I don't know but how can we relate a fix supply with a floating one?
Bitcoin is a fixed supply.
Gold, Noone knows exactly.
So, following this model, Bitcoin will be the scarcest asset in the world in 1 or 2 cycles, if it isn't already.