LeatherMint on Nostr: Saifedean use the stock-to-flow ratio to make the following argument. It NEVER had ...
Saifedean use the stock-to-flow ratio to make the following argument. It NEVER had anything to do with prices or predictions. Pass it on.
**Premise 1:** An asset’s stock-to-flow ratio is the ratio of its total existing supply (stock) to its annual production (flow).
**Premise 2:** A higher stock-to-flow ratio means new production is small relative to the existing supply, making the asset harder to inflate.
**Premise 3:** Historically, societies have chosen the hardest-to-inflate assets as money.
**Premise 4:** When an asset with a higher stock-to-flow ratio appears, it tends to replace the previous monetary standard.
**Premise 5:** Bitcoin’s stock-to-flow ratio is surpassing gold’s and will continue to rise due to its fixed supply and halving schedule.
**Conclusion:** Bitcoin will replace gold as the hardest form of money.
**Premise 1:** An asset’s stock-to-flow ratio is the ratio of its total existing supply (stock) to its annual production (flow).
**Premise 2:** A higher stock-to-flow ratio means new production is small relative to the existing supply, making the asset harder to inflate.
**Premise 3:** Historically, societies have chosen the hardest-to-inflate assets as money.
**Premise 4:** When an asset with a higher stock-to-flow ratio appears, it tends to replace the previous monetary standard.
**Premise 5:** Bitcoin’s stock-to-flow ratio is surpassing gold’s and will continue to rise due to its fixed supply and halving schedule.
**Conclusion:** Bitcoin will replace gold as the hardest form of money.