Many people claim to be experts in cryptocurrency nowadays, especially those who were fortunate enough to be early investors in the tokens. While those experts do exist, it’s hard to decide on who knows what they’re talking about, and who is just making random predictions.
One investor who has a tremendous amount of experience in financial markets and blockchain specifically is PlanB.
PlanB is one of the biggest informational sources when it comes to Bitcoin, as he uses his signature Stock-to-Flow model, a quantitative tool that has seen success with its predictions.
The model has been so effective that it has been used for other assets and it has become adopted by other investors and institutions across the world. While many are sure that his ideologies are accurate, it’s still unknown as to who PlanB is in real life.
Who is PlanB and what is the Stock-to-Flow?
While very little is known about his personal life, PlanB is a former institutional investor from the Netherlands. He’s always been acknowledged by his pseudonym and is one of the most popular figures on Twitter when it comes to cryptocurrency and blockchain.
His name derives from the topic of quantitative easing, in which there are alternative solutions for central banks to increase the money supply. The Dutch investor claims that he has over 25 years of experience in financial markets, having a background in legal and quantitative finance.
In 2019, PlanB would introduce his signature Stock-to-Flow model. The model involves measuring the currently available stock of an asset, against the production/mining rate. So the model essentially uses the scarcity of Bitcoin to measure its value. He uses this model along with his extensive knowledge in mathematics and analytics.
The investor’s model has proven to be accurate in various instances when it comes to Bitcoin, and it has adapted to other types of assets as well including gold, silver, diamond, and real estate.
PlanB reportedly is part of an investment team, where he works as an investment manager and is involved in managing balance sheets that are worth over billions of dollars.
So far, his predictions of Bitcoin being around $47,000 in August and $43,000 in September have been accurate. Even in 2020, PlanB’s Stock-to-Flow model was fairly accurate in predicting where Bitcoin’s price would be at by the end of the year.
PlanB’s future predictions for Bitcoin:
Coming off a successful two-month run, the investor predicts the token to be priced around $63,000 by the end of October, near $98,000 in November, and somewhere around $135,000 in December.
This would mean that the cryptocurrency would have to more than double in price from where it’s at now. He also predicts a supply shortage for BTC is coming, which could also contribute to his high price targets.
In an analysis he posted on Twitter, using his Stock-to-Flow Cross Asset model, PlanB predicts that Bitcoin’s price will reach $1 million in 2024 and nearly $10 million in 2025.
The investor has extremely high expectations for the token, as he says that it will see a bullish run for at least six more months.