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For a few years now, the pseudonymous creator of the popular stock-to-flow (S2F) bitcoin price model, Plan B, has become a very well known bitcoin influencer gathering 1.8 million Twitter followers. However, after the S2F price model didn’t come to fruition and dropped well below the price targets in 2022, Plan B and his price model have been criticized a great deal. Vitalik Buterin, Ethereum’s cofounder, denounced Tuesday’s S2F price model. He said that financial models that give people false certainty can be harmful and should be ridiculed.

Plan A’s Stock-to Flow Bitcoin Price Model is Not as Popular As It Was

A few specific price models have been mocked this week as people have noticed that bitcoin’s price has not followed the “Rainbow” price indicator and Plan B’s famous stock-to-flow price model. The pseudonymous creator of the S2F model caught the attention of the crypto community years ago on March 22, 2019, when he published an editorial called “Modeling Bitcoin’s Value with Scarcity.” When things got bullish in late 2020 and into 2021, Plan B’s statements and price model were revered and at times, the analyst’s predictions were on point.

In January 2021, bitcoin’s (BTC) USD value was seemingly following the S2F model and at the time Plan B said: “bitcoin stock-to-flow model [is] on track… like clockwork.” Toward the end of June 2021, Plan B gave an update on his “worst case scenario for 2021.” The analyst said: “Bitcoin is below $34K, triggered by Elon Musk’s energy FUD and China’s mining crack down. We also see weakness in June and possibly July. My worst case scenario for 2021 (price/on-chain based): Aug>47K, Sep>43K, Oct>63K, Nov>98K, Dec>135K.”

Prediction is hard, especially the future. EMH says it is difficult to predict financial markets, especially the future. For who is still interested in models, here are 5 BTC valuation models:

– Time (log regression, rainbow) and S2F too high

– UTXO/TX too low

– Difficulty/Mining_cost currently best pic.twitter.com/9FYCbWmbp7

— PlanB (@100trillionUSD) June 21, 2022

After publishing his “worst-case scenario” predictions, August and September seemed to have reached the targets Plan B predicted. However, while BTC hit an all-time high at $69K per unit on November 10, it did not make it near the $98K range and December was not even close. Fast forward to the end of 2022’s first quarter and BTC‘s price continued to slide lower, and presently, the leading crypto asset’s price compared to the S2F chart is way off the radar. Plan B and his price model have been criticized in the past and by well known BTC advocates. For instance, the owner of Upstream Data, Steve Barbour, once tweeted:

The S2F model is the used car salesman approach to memeing bitcoin to the moon.

Buterin: ‘Stock to-Flow is Really Not Looking Good Now ‘

In recent years, Plan B’s model was mocked more severely. Ethereum advocate Anthony Sassano tweeted about the S2F model and Plan B’s predictions. Sassano stated that the ‘Stock-to-flow’ model was such a failure that Plan B should delete his account. “He won’t though, because he still has 1.8million followers who eat all of his hopium garbage every day.” Vitalik Buterin, Ethereum’s co-founder, also tweeted about the matter.

“Stock-to-flow is really not looking good now,” Buterin said retweeting Sassano’s statement. “It’s rude to brag and all that but I believe financial models that give people false certainty and predestination that number will go-up are harmful and deserving of all the ridicule they get. Remember who supported S2F and who mocked it even back when it looked like it was accurately describing the trendline,” the Ethereum co-founder added.

Plan A Responds, Analysts’ Fans Tell Him to Keep Posting — They Enjoy the Perspective You Bring ‘

Plan A responded to Buterin’s statement by retweeting his tweet on Tuesday with some criticism towards “failed projects .”

“After a crash, some people are looking for scapegoats for their failed projects or wrong investment decisions,” Plan B said. “Not only are newbies, but [also] leaders also fall prey to playing the victim and blaming others.” Remember those who blame others and those who stand strong after a crash.” Plan B also retweeted an individual who wrote that “Ethereum’s ‘ultrasound’ tokenomics are entirely based on S2F.” Plan B also explained later in the day that he shares his analysis and charts free of charge.

“So I share my analysis and charts FOR FREE,” Plan B wrote on Tuesday. “Never told anybody to buy or what/when/how/howmuch to buy. Covid, Russia’s war, China ban and inflation tank all assets, including bitcoin… and some weeners blame me for their investment decisions. Lame.”

She’s a 10 but according to PlanB

— cryptograffiti (@cryptograffiti) June 21, 2022

S2F was mocked for being incorrect, and the “Rainbow price indicator” has been ridiculed during the past two weeks. In a similar fashion, the Rainbow chart has not contained BTC‘s price but some people said they could add a few extra lines of purple to make the chart work again. “I’ve created a new and improved model for the rainbow chart,” the Twitter account @Levelsdennis tweeted.

A number of bitcoiners felt the same as Plan B and encouraged him to continue his work. “Indeed. “Indeed. Keep posting pls. I enjoy your perspective.” The popular Twitter account @BTC_archive, which has 1 million followers, told the pseudonymous analyst.

What do you think about the recent criticisms about Plan B’s stock-to-flow bitcoin price model? Please comment below to let us know your thoughts on this topic.

Image Credits: Shutterstock, Pixabay, Wiki Commons

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