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Plan B’s Stock-to-Flow Price Model Denounced by Vitalik Buterin, Says Model Can Be ‘Harmful’

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Within a few years, the alias of the creator of the popular stock-to-flow (S2F) bitcoin pricing model, Plan B, became a very well-known bitcoin influencer with 1.8 million followers on Twitter. However, after the S2F pricing model failed to materialize and fell well below the target prices in 2022, Plan B and its pricing model were heavily criticized. On Tuesday, Ethereum co-founder Vitalik Buterin denounced the S2F pricing model and said that “financial models that give people a false sense of certainty” can be “harmful” and deserving of ridicule.

Plan B’s Stock-to-Flow Bitcoin price model isn’t as popular as it once was

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Several specific price patterns have been ridiculed this week as people have noticed that the price of bitcoin has not been following. Price indicator “Rainbow” and the famous plan B stock-to-flow pricing model. The creator of the S2F model under a pseudonym attracted the attention of the crypto community many years ago, on March 22, 2019, when he published editorial titled “Modeling the Value of Bitcoin with Scarcity”. When things turned bullish at the end of 2020 and into 2021, Plan B’s statements and price model were respected, and analysts’ predictions were accurate at times.

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In January 2021, Bitcoin (BTC) The value of the US dollar appeared to follow an S2F model, and at the time Plan B said: “Bitcoin’s stock-to-flow model [is] on the move … like clockwork. By the end of June 2021, Plan B gave Refresh about his “worst case scenario for 2021”. The analyst said: “Bitcoin is below $34k driven by Elon Musk’s energy FUD and China’s mining crackdown. There is a more fundamental reason why we see weakness in June and possibly July. My worst-case scenario for 2021 (based on price/chain): August > 47K, September > 43K, October > 63K, November > 98K, December > 135K.

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With the publication of his “worst-case” forecasts, August, September, and October appear to have met the targets predicted by Plan B. However, so far BTC hit an all-time high of $69k per unit on Nov. 10, it didn’t get close to the $98k range, and December wasn’t even close. Fast forward to the end of the first quarter of 2022 and BTCthe price continued to fall and the price of the leading crypto asset compared to the S2F chart is currently far out of sight. Plan B and its pricing model have been criticized in the past by well-known BTC supporters. For example, Upstream Data owner Steve Barbour once tweeted:

The S2F model is a used car dealer’s approach to sending bitcoin to the moon.

Buterin says “Stock-to-Flow doesn’t look good right now”

Recently, the Plan B model has been the subject of ridicule and vehement ridicule. Ethereum supporter Anthony Sassano tweeted about the S2F model and Plan B’s forecasts. “Stock to flow is such a massive failure that Plan B should just delete his account,” Sassano said. “He won’t because, unfortunately, he still has 1.8 million followers who eat all of his opium trash daily.” The tweet then caught the attention of Ethereum co-founder Vitalik Buterin, who also commented on the topic.

“Stock-to-flow really doesn’t look good right now.” – Buterin said retweet of Sassano’s statement. “I know it’s impolite to gloat and all, but I think financial models that give people a false sense of certainty and predestination that the number will rise are harmful and deserve all the ridicule they receive. Remember who supported S2F and who mocked him back when he seemed to accurately describe the trend line, ”- Ethereum co-founder. added.

Plan B responds, the analyst’s fans tell him: “Keep posting – I love the point of view you bring”

Plan B reacted to Buterin’s statement by retweeting his tweet on Tuesday with some criticism of “failed projects”.

“After a crash, some people look for scapegoats for their failed projects or bad investment decisions.” – Plan B said. Not only newcomers, but also [also] “leaders” become victims of blaming others and playing the victim. Remember those who blame others and those who remain resilient after an accident.” Plan B too retweeted the person who wrote that “Ethereum’s ultrasonic tokenomics is based entirely on S2F.” Plan B also explained later that day that he shares his analysis and charts for free.

“That’s why I share my analysis and charts for FREE.” – Plan B wrote on Tuesday. “Never told anyone to buy or what/when/how/how much to buy. Now covid, china lockdown, war in russia and inflation are draining all assets including bitcoin… and for some reason some wimps are blaming me for their investment decisions? Lame.”

As mentioned above, S2F has been criticized for being wrong, but the Rainbow price indicator has also been ridiculed over the past two weeks. Similarly, the Rainbow chart did not contain BTC, but some people said they could add a few extra purple lines to make the chart work again. “I’ve created a new and improved model for the rainbow chart,” @Levelsdennis tweeted. tweeted.

Meanwhile, a number of bitcoiners sympathized with Plan B and advised him to continue his work. “That’s right. Keep posting please, I like your perspective,” a popular Twitter account with 1 million followers, dubbed @BTC_archive, told the pseudonymous analyst.

What do you think of the recent criticism of the Plan B Bitcoin pricing model? Let us know what you think about it in the comments section below.

Denial of responsibilityA: This article is for informational purposes only. This is not a direct offer or solicitation to buy or sell, nor is it a recommendation or endorsement of any products, services or companies. does not provide investment, tax, legal or accounting advice. Neither the company nor the author is directly or indirectly liable for any damage or loss caused or alleged to be caused by the use of or reliance on any content, goods or services mentioned in this article.

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