What is Stock-to-Flow?
The Stock-to-Flow (S2F) model values Bitcoin based on its scarcity. It compares existing supply (stock) to new production (flow), which changes every 4 years at halving events.
How It Works:
Higher S2F ratio = greater scarcity = theoretically higher price. Bitcoin's S2F increases dramatically at each halving, historically leading to bull markets.
Key Events:
Markers on the chart show historical halving events when Bitcoin's inflation rate was cut in half, increasing its scarcity.