Stock-to-Flow priced in Gold may be a better model for us to follow going forward

If the USD is eventually going away, and history says that it will eventually, then perhaps we need to use a different input for our bitcoin stock-to-flow.

Interestingly enough, bitcoin tracks right along with gold almost as well as it does USD.

Check it out:

(Source: https://twitter.com/RuthJam47325992/status/1280450078109503489)

The major difference is the divergence recently.

As you can see on the above chart, bitcoin is starting to diverge off of that line.

On the USD chart, bitcoin is still pretty much right on the line.

This doesn't mean stock to flow failed or doesn't work with gold, there are often times when bitcoin diverges quite a bit from the line, but over time it comes back to it.

We saw it during the bull run of 2017 where bitcoin lagged the stock to flow model by months, but then eventually came back to it and was even above it briefly.

It will be interesting to see how closely bitcoin moves along with gold in this model though.

Stay informed my friends.

-Doc