# PlanB - Modeling Bitcoin Value With Scarcity (Highlights)

## Metadata
**Review**:: [readwise.io](https://readwise.io/bookreview/14695913)
**Source**:: #from/readwise
**Zettel**:: #zettel/fleeting
**Status**:: #x
**Authors**:: [[PlanB]]
**Full Title**:: Modeling Bitcoin Value With Scarcity
**Category**:: #articles #readwise/articles
**Category Icon**:: 📰
**Document Tags**:: #bitcoin #economics
**URL**:: [medium.com](https://medium.com/@100trillionUSD/modeling-bitcoins-value-with-scarcity-91fa0fc03e25)
**Host**:: [[medium.com]]
**Highlighted**:: [[2021-02-11]]
**Created**:: [[2022-10-12]]
## Highlights
- In this article I quantify scarcity using stock-to-flow, and use stock-to-flow to model bitcoin’s value. ^309894709
- Nick Szabo has a more useful definition of scarcity: 'unforgeable costliness' ^309894710
- "Precious metals and collectibles have an **unforgeable scarcity** due to the costliness of their creation. ^309894711
- Bitcoin has unforgeable costliness, because it costs a lot of electricity to produce new bitcoins. ^309894712
- stock-to-flow ^309894713
Cap/ New
- around the year 2022, Bitcoin's **stock-to-flow ratio** will overtake that of gold" ^309894714
- SF = stock / flow ^309894715
- Stock is the size of the existing stockpiles or reserves ^309894716
- Flow is the yearly production ^309894717
- halvings' are very important for bitcoins money supply and SF ^309894718
- The predicted market value for bitcoin after May 2020 halving is $1trn, which translates in a bitcoin price of $55,000. ^309894719