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RE: The Stock to Flow Model says Bitcoin will hit $100k by end of 2021

in LeoFinance5 years ago (edited)

One serious law (edit- flaw! not 'law' lol) in this.

The dollar was valued against metals (gold ).
The metal was the foundation.

Bitcoin is valued against a fiat currency....erm...

Metals have intrinsic value.
Fiat money doesn't.
Neither does bitcoin. (cost of production is not intrinsic value).

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The intrinsic value of gold is fractions of what it is valued at. The vast majority of gold's value is due to its store of value and speculative properties.