Why modelling Bitcoin’s price using the Stock To Flow Model is a bad idea

On August 1, 2020, The Coin Telegraph read: “the price of Bitcoin surpassed $11,700 and Plan B, a twitter user and the creator of the Stock to Flow model said that BTC rally to $100,000 is well on track.”

The stock to flow model (S2F) potentially tells a story of scarcity. Stock refers to the total amount of the commodity available in use…