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RE: Steemit Engagement Challeng -S15/W2 | Stock to Flow Model

in SteemitCryptoAcademy7 months ago

Greetings friend,

You're absolutely right about the stock-to-flow model. Let us think of it in a simple every day life setting like, if there's a limited edition toy that everyone wants, the fewer there are, the more valuable they become. As more people buy it, the demand increases, driving up the price. The same goes for Bitcoin, as its scarcity makes it more valuable, therefore the S2F model is solely based on calculating this scarcity ratio and how it affects the Bitcoin price.

Your post on this topic is really appreciated. Good luck in the competition.

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Thanks for the thoughtful reflection! Simplifying with relatable examples makes understanding the S2F model clearer.

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