CREATOR OF BITCOIN S2F MODEL DESCRIBED BTC INVESTMENT IN 4 REASONS

CREATOR OF BITCOIN S2F MODEL DESCRIBED BTC INVESTMENT IN 4 REASONS

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Fixed supply and interest rates, which refuse to be negative, are among the biggest advantages of switching fiat for BTC, says PlanB.

Bitcoin (BTC) was the top pick of analyst PlanB, renowned for its scarcity and the possibility of a zero-negative interest rate.

In a series of tweets on July 7, the creator of Bitcoin's stock flow price model explained what attracted him to buy the cryptocurrency.

PlanB: “most people are sleeping " at BTC”

PlanB became known as an outspoken BTC supporter. The price model has undergone several incarnations and currently predicts a bitcoin price of $ 288,000 by 2024.

So far, the stock flow model has tracked the metamorphosis of Bitcoin with almost 100% accuracy. However, before creating it, PlanB was eyeing macro factors and an exit from the fiat currency.

He wrote on Twitter:

“Why I bought #bitcoin in 2015-2016 (before Model):

- 46 million millionaires in the world, only 21 million BTC

- gold or $ can't be used in space or Mars, it doesn't need anything else

- no one can freeze the account or block transactions

- 0% interest rate better than negative interest rate ”

The reasoning will be familiar to many. Bitcoin's fixed supply, non-physical structure, decentralized structure and "hard" currency credentials continue to make it an investment option for both large and small-volume investors.

Since 2015, particularly negative interest rates have risen, Bitcoin is a safe haven from central bank taxes and cash savings are facing eroding value.

Continuing, PlanB said mainstream consumers were still unaware of Bitcoin's benefits as money.

“Isn't that funny? People in the Netherlands have about $ 400 billion in bank savings accounts, 0% interest ($1 million interest rate negative),”he wrote.

Bitcoin stock flow price model as of July 8

Bitcoin rewards low-term preferential investors by not encouraging spending or borrowing as quickly as possible. The opposite applies to issuers who use negative interest rates and inflationary policy to punish long-term savings.

At the same time, miners are being encouraged not to change the key features of Bitcoin - fixed supply and fixed emissions - because doing so would endanger their own well-being.

As Saifedean Ammous outlined in his popular book “The Bitcoin Standard,” this form of “digital scarcity” is unprecedented in history and allows Bitcoin to fill a niche that money, including gold, has not yet managed.


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