Ethereum founder Vitalik Buterin criticized the historical Stock-to-Flow model used in Bitcoin (BTC) price predictions. Accordingly, the inventor of Ethereum thinks that the predictions made by the very old S2F model are extremely wrong. We have compiled the details for you.
Historical Bitcoin model may be giving wrong predictions
Ethereum inventor Vitalik Buterin criticized the Stock-to-Flow (S2F) model used in Bitcoin price. The famous crypto personality claimed that the model gave false predictions about the price of Bitcoin (BTC). Accordingly, Buterin says that financial models that give wrong predictions make people believe that prices will rise. This means that it is very harmful for investors due to its wrong predictions. In contrast, PlanB, the creator of the S2F model, fully supports the model. According to him, some people are trying to blame others for wrong investment decisions after the crypto market crash.
Vitalik Buterin smashed the S2F model
In a tweet on June 21, Vitalik Buterin criticized the S2F model for giving false predictions about the price of Bitcoin. The tweet came after the Bitcoin (BTC) price drastically diverged from the S2F trendline following the crypto market crash:
“The S2F model is not looking really good right now. I know it’s rude to mock. However, I think they give people a false sense of certainty and predetermination that the number will increase. Therefore, these financial models are harmful and deserve all the ridicule they come across.”
PlanB claims that the Bitcoin model it created is correct
The S2F model is considered one of the best models for predicting BTC prices. Historically, the model correctly suggested the Bitcoin price. But the two crypto market crashes and the rising FUD have caused significant divergences. In response to Vitalik Buterin’s tweet, PlanB said that some recruits and leaders blame others for their failed projects and investment decisions. He also stressed the importance of doing something better than blaming others after a collapse. However, in a tweet on June 20, PlanB claimed that the model would become inefficient in the future:
“The S2F model definitely performed well from March 2019 (BTC 4,000) to March 2022 (BTC 45,000). Now there are two possibilities: BTC is extremely undervalued and will bounce back soon. Or S2F will become less useful in the future.”
Other crypto personalities also criticized the model
Bitcoin (BTC) price has deviated significantly from the S2F trendline, as we have reported on Kriptokoin.com. After that, many began to fear that the S2F model was wrong. Ethereum educator sassal.eth, Terra’s FatMan, and other Ethereum supporters frequently criticize the S2F model. Vitalik Buterin also explained that when the S2F model is applied to the Ethereum price and ETH flow, the value turns out to be negative.
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