Vitalik Buterin Criticizes Bitcoin S2F Chart (to $100k) Prediction
Vitalik Buterin, the founder of Ethereum, has criticized PlanB’s popular Bitcoin Stock-to-Flow (S2F) chart, noting that the model gives people false hope.
Sharing his views on Twitter today, Buterin said that prediction charts aimed at giving users the conviction that the prices of crypto assets would go up by a particular time are “harmful and deserve all the mockery they get.”
Remember who supported S2F and who mocked it even back when it looked like it was accurately describing the trendline.
— vitalik.eth (@VitalikButerin) June 21, 2022
What is the Bitcoin S2F Model?
The Bitcoin S2F Model is a forecast price chart that is designed to project the price of Bitcoin by the use of a mathematical computation where the existing circulating supply of the coin is divided by its annual production, which gets halved every four years.
The popular model was designed by PlanB, a pseudonymous Dutch analyst. Since the creation of the model in March 2019, he has become a big-time Bitcoin maximalist, giving predictions for the price of the leading cryptocurrency.
PlanB’s Prediction Gone Wrong
Back in November 2020, PlanB predicted that BTC will attain a trading price of $100,000 to $288,000 towards the end of 2021. While 2021 was a bullish season for the cryptocurrency market, the price of the asset only reached an all-time high of about $68,800.
Since then, the price of the leading cryptocurrency has been on a continuous downtrend, dropping by more than 60% from its ATH. At the time of writing, bitcoin was trading at $21,200.
Despite the failure of PlanB’s $100k Bitcoin price prediction, the Dutch analyst shared another prediction in February 2022 that the crypto asset will reach the $100k price mark in 2023.
When asked about the failed prediction of 2021, PlanB noted that Bitcoin’s price is still “below [the S2F] model line.” Even with his new claim, many people find it difficult to accept his prediction after a failed prediction.
Modified S2F Model Reveals BTC Price of $140k
Earlier this month, Jurrien Timmer, the director of global macro at Fidelity Investments, modified the Bitcoin S2F chart and introduced a new version dubbed the S-Curve Model.
With the new model, he predicted the price of bitcoin to increase to a height of $144,000 in the next three years.
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