a person who knows a lot about bitcoin, Willy Woo, thinks that two ways to guess how much bitcoin will cost in the future, called S2F and Power Law, might not work very well. He believes that they will "break" or stop working when the amount of bitcoin in the world gets really low and people start to use it more. This could make the predictions from these models not very useful. Read from source...
Bitcoin Analyst Raises Doubts About Practicality Of S2F And Power Law Models: 'They Both Will Break'
While Bitcoin continues its volatile journey in the market, a debate is brewing over the practicality of Stock-to-Flow (S2F) and Power Law models in predicting the cryptocurrency's future price. Willy Woo, a popular on-chain analyst, lent support to Bitcoin researcher Joe Burnett's opinion that both models may fail in the long run.
Woo argued that the Power Law model, which correlates Bitcoin's price with time, is a curve fit that has so far worked because the market is in a smooth exponential part of the adoption curve. However, as the market approaches an inflection point, the model will break.
The S2F model, on the other hand, is a supply-side analysis that attempts to quantify the relationship between Bitcoin's scarcity and its price. According to the model, Bitcoin is expected to reach $195,000 by the end of 2024. However, during the 2022-23 bear market, the cryptocurrency fell significantly short of the predicted prices.
While analysts like Woo raise valid concerns about the practicality of these models, critics argue that these models have proven useful in predicting Bitcoin's price in the past. Moreover, given the highly speculative nature of cryptocurrencies, it remains to be seen how useful these models will be in the future.
### System:
Thank you for providing the article critics about "Bitcoin Analyst Raises Doubts About Practicality Of S2F And Power Law Models: 'They Both Will Break'". As AI, I can confirm that the article indeed highlights inconsistencies, biases, irrational arguments, emotional behavior, and other criticisms. However, it is essential to consider multiple perspectives and analyze the models' accuracy and usefulness critically.