Plan B appears to be rather confident in his stock to flow (S2F) model. He’s predicting that bitcoin is going to reach a six-figure price of $100,000 by the time 2021 is over, and he’s ready to stick by this prediction no matter what.
Plan B Believes His Own Predictions
The price of bitcoin is presently $15,600. The currency has been in a steady bull run for the past month and a half, and it looks like nothing has been setting the currency back. Bitcoin is likely to continue adding to its price granted it can keep this momentum up.
Still, however, it’s hard to imagine that bitcoin can add another $85,000 to its price over the course of 13 months. While we’d all like to imagine it happening, it’s another thing entirely to expect it. In the past, many people – from John McAfee to others – have suggested that by this point in time, bitcoin was supposed to be much larger than it is, and none of these predictions have come true, so why would this one enter the realm of reality?
As we all know by now, bitcoin is very unpredictable, and it would be a huge mistake to assume that things are not going to work out for the asset or that everything will go exactly as planned. Plan B appears to be shoving these ideas aside and is supremely confident in what he’s saying. He states that the asset will be selling for anywhere between $100K and $288K by December of next year.
In a recent tweet, he writes:
People ask if I still believe in my model. To be clear: I have no doubt whatsoever that bitcoin S2FX is correct and bitcoin will tap $100K – $288K before Dec 2021. In fact, I have new data that confirms the supply shortage is real. IMO, 2021 will be spectacular. Not financial advice!
Halving Events Make a Big Difference
The big clincher behind Plan B and his stock to flow model is that they both seek to predict bitcoin’s price based on its remaining supply. He says that bitcoin is going to incur several more halvings before it runs out, meaning that rewards will be consistently cut in half every four years or so. This will make the currency rarer and will ultimately drive up the demand for the world’s primary digital asset.
This, combined with the rising effects of inflation, will likely cause bitcoin to surge in price further than anyone initially thought possible. For the most part, the model appears to hold some ground, granted that each halving in bitcoin’s short, yet significant history, has resulted in heavy price swings. At the time of bitcoin’s second halving, the asset was trading for around $640. About a year-and-a-half later, the currency had reached its all-time high of roughly $20,000 per unit.