While criticizing the stock-to-flow (S2F) model, Ethereum co-founder Vitalik Buterin said that the model produces inaccurate predictions about the price of Bitcoin. Plan B, the developer of the S2F model, was quick to respond.

Vitalik Buterin criticized that the model that predicts the price of Bitcoin misleads people with the expectation of high prices and causes serious losses. In response, anonymous analyst PlanB, the developer of the S2F model, replied. Plan B said that some people are trying to find victims for failed projects and wrong investment decisions after the crypto market crash.

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The stock-to-flow (S2F) model developed by PlanB is a model that predicts the price of Bitcoin based on the size of available Bitcoin reserves and the annual supply of Bitcoin. The model, which has had accurate price predictions over the past years, has become an extremely popular tool among the crypto community.

However, the deviation of the model after estimating the Bitcoin price as 100 thousand dollars in December 2021, and then the missing of a movement forecast for 2022 in the range of 50,000 - 150,000 dollars, increased the number of criticisms towards the model.


Buterin, who put the S2F model on his agenda, defined the model as a failure on Twitter today and said that it was seen once again how harmful such models, which promise to rise continuously, are. Buterin also implied that the model was wrong, noting that when the S2F model was applied to Ethereum, the value turned out to be negative.

PlanB, on the other hand, has already made confessions about its own model, as well as responding to the criticisms of Vitalik Buterin. PlanB, in its share yesterday, stated that the Bitcoin prediction model performed well between the 2019 - 2022 period, but during this period, either BTC was subject to excessive sales and would make a splash soon or S2F would lose its effectiveness in the following periods.