Unchained Unconfirmed: Bitcoin Projected to Reach $135,000 in December, According to PlanB - Ep.283
Oct 22, 2021
PlanB, a former institutional investor turned Bitcoin analyst, shares his insights on Bitcoin's price dynamics and his innovative stock-to-flow model. He discusses the significant impact of Bitcoin futures ETFs on market confidence, the role of scarcity in asset pricing, and external factors like the pandemic that influence Bitcoin's trajectory. PlanB highlights how China's mining ban reshaped the mining landscape and predicts Bitcoin's price potential through the end of the year, stirring curiosity about whether we're in a supercycle.
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PlanB's Background
- PlanB worked in traditional finance for 25 years, focusing on risk management and investments.
- He discovered Bitcoin in 2013 and was immediately fascinated by it.
Stock-to-Flow Model
- PlanB created the stock-to-flow model to value Bitcoin based on its scarcity, similar to gold.
- He found a correlation between stock-to-flow and market value across scarce assets, suggesting Bitcoin's value should be between silver and gold.
Bitcoin's Price Potential
- PlanB's model predicted Bitcoin reaching a $1 trillion market cap when it was at $4,000.
- He believes Bitcoin's scarcity justifies a market cap comparable to gold, between $5 and $10 trillion.
