Blockchain service provider TAAL has processed the largest block to date on Bitcoin SV 369MB in size and containing 1.3 million transactions.

TAAL announced the milestone on Twitter. The block is an order of magnitude larger than anything currently achievable on Bitcoin (BTC) or Bitcoin Cash (BCH).

Speaking to Cointelegraph, Jerry Chan, Chief Executive Officer (CEO) of TAAL, said the transactions were primarily processed by users of an application out of China, who competed with each other to see who could create the most transactions in a contest designed to test the transaction capabilities of the network.

It follows hot on the heels of a block with 1.1M transactions processed on May 13.

According to Chan, though groups like TAAL do engage in mining, their focus is on transaction processing to develop the infrastructure needed for the BSV network to thrive.

We want to encourage more generation of transactions so were going more for transaction volume and not the number of blocks necessarily, the CEO said. He argued that Bitcoin has an artificial block size limit and eventually would get to the point where there will be no more blocks produced.

Were happy to cue up as many transactions as we need until its worth it to print it into a block, Chan added.

Chan anticipates spikes in transaction volume from time to time, when processors can hold them until its worthwhile putting them in one big block. Unlike the BTC network, BSV can continue without significant congestion at such high volume, he said.

The percentage of miner revenue coming from fees is currently low for BSV. According to crypto analytics site Messari, the transaction fees for BSV on May 19 were just $271 while BTCs were valued at $960,928.

The minimum fee rate on the open BSV network is 0.5 satoshis/byte, with the possibility of negotiating for an even cheaper rate.

Cointelegraph has reported some crypto miners might be shifting back from the BTC network to coins like BSV and BCH following the halving. BSVs hash rate grew from 1.1 EH/s pre-halving to 2.15 EH/s on May 16, when the 1.3M-transaction BSV block was mined.

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Bitcoin (BTC) is a compelling investment case for patient, long-term investors willing to spend the time to understand the top cryptocurrency, a new paper by Paradigm co-founder managing partner Matt Huang notes.

The crypto entrepreneur places BTC besides gold, as a go-to store of value, amid unprecedented stimulus spending by governments during the Covid-19 crisis.

Bitcoin is likely to earn a place alongside gold as a sensible part of many investment portfolios, Huang says in a paper aimed at reaching out to conventional investors, Bitcoin for the open-minded skeptic.

It combines the scarce, money-like nature of gold with the digital transferability of modern currency, he added. At the peak of the virtual currencys adoption curve, central banks may come to view bitcoin as a complement to their existing gold holdings.

Huangs paper is not so much premised on novel insights as it is about mapping a future out of BTCs intrinsic features.

Beyond comparing favorably to some cryptocurrencies for its classic money features such as scarcity (at 21 million coins), portability, and broad accessibility, bitcoin intrinsically improves on traditional assets. Its digital format, programmability, universality, and decentralization are a source of alternative appeal.

Decentralization and immunity to censorship afford BTC holders a special kind of confidence: that bitcoin cannot be devalued by arbitrary monetary policy decisions, and that they will always be able to hold and transfer their bitcoin freely, Huang writes.

This becomes especially important at a time when the markets are unusually exposed to politics, not just benign government interventions but also crisis-related protectionism and bilateral hostilities.

A recurring objection to BTC as an asset class is that it is a bubble but Huang turns the same criticism around in favor of the crypto. Citing Nobel laureate Robert Shiller, he notes that BTC is in good company as gold is also a bubble, being an asset class of no immediate utility but rather valuable for popular conviction about a future value that occasionally pushes the prices up.

Bitcoin bubbles of note, 2011, 2013, 2013-15, and 2017 began with high-conviction investors buying when things were quiet on the front, followed by media attention, speculation, further attention, and investor interest.

Although painful for those involved, each bubble leads to broader awareness and motivates bitcoins underlying adoption, gradually expanding the base of long-term holders who believe in bitcoins potential as a future store of value, Huang explains.

Through successive bubbles, bitcoin reaches greater levels of scale in users, transaction volumes, network security, and other fundamental metrics, he argues.

Bitcoins relative ease of access through in-built financial inclusion mechanisms will be useful in growing its market size as people with eroding currencies are more likely to get the digital asset than they are to get gold or other valuables like art or property.

Political considerations may also work in the cryptocurrencys favor. If foreign governments (some of whom already bristle at their dependence on US dollar forex reserves) begin to adopt bitcoin as a complement to existing gold holdings, the market size for bitcoin could expand significantly, Huang adds without committing to a precise estimate.

Huang contrasts the general optimism of his paper with BTC risks such as volatility and regulation. Volatility, however, aids adoption and may terminate when broad acceptance lead to stability, while regulation can be mitigated by bitcoins decentralized nature.

What do you think about Bitcoins comparisons to gold? Let us know what you think in the comments section below.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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How Investors Are Presented With Bitcoin: 'A New Decentralized Monetary Asset, Akin to Gold' - Bitcoin News

During the last few months, Bitcoin.coms cryptocurrency exchange has added a number of new coins and features. Today, Bitcoin.com Exchange has added an Ethereum-based inverse token called BTCSHORT, a token that gives users exposure to the inverse or -1x the daily performance of Bitcoin on any given day.

Bitcoin.com Exchange traders can now access a new Ethereum-based inverse token created by the company Amun. Our cryptocurrency trading platform has added BTCSHORT so traders can gain exposure to the inverse or -1x the daily performance of bitcoin (BTC). The new token will be accessible at 10:00 a.m. UTC and it will be paired with the stablecoin tether (USDT). A recent blog post published by Bitcoin.com explains how the BTCSHORT product from Amun works and how customers who use our exchange can leverage the token.

BTCSHORT is strictly not a security, carries many risks, and is not suitable for risk-averse token holders and traders, the blog post explains. This type of token is best suited for sophisticated, highly risk-tolerant token holders who understand and are comfortable with taking on the risks inherent to inverse tokens like BTCSHORT and understand the risks associated in holding tokens generally and inverse products in particular.

For instance, if the price of BTC is trending downward then BTCSHORTs multi-day performance will prosper, and daily returns of the token will be compounded. In contrast, if there is low volatility and the price of BTC is headed northbound, then BTCSHORTs performance will drop and there will be no compounded returns.

Losses made on one day will be, because of previous losses, applied to a smaller amount, the announcement details. This means that compounding will lead to slightly reduced losses than if there were no compounding. Additionally, the BTCSHORT listing announcement adds:

BTCSHORT offers a notional exposure to -1x the daily performance of Bitcoin. It is crucial that all token holders understand how compounding and the daily rebalancing of the token affect performance, especially in volatile markets. The tokens are designed for holding periods of equal or less than one day and holders need to consider their holdings each day.

If you are interested in learning more about BTCSHORT and other digital asset token backed by industry experts then check out Amuns website and frequently asked questions (FAQ) section. If you want to join one of the fastest cryptocurrency trading platforms on the market today, then check out Bitcoin.coms Exchange today.

Our exchange is a simple-to-use trading engine that offers a variety of different cryptocurrencies. Popular digital assets hosted on the platform include coins like litecoin (LTC), ripple (XRP), tron (TRX), zcash (ZEC), stellar (XLM), dash (DASH) and eos (EOS) are paired with markets denominated in base currencies such as bitcoin cash (BCH), ETH, BTC, and tether (USDT).

What do you think about the token BTCSHORT? Let us know in the comments below.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Exposure to -1x the Daily Performance: Bitcoin.com Exchange Adds Inverse Token BTCSHORT | Promoted - Bitcoin News

Blockchain venture studio Thesis has put a pause on deposits into tBTC, its new platform meant to put BTC on Ethereum so BTC can be used in decentralized finance (DeFi).

The Thesis team cited a bug, but is not disclosing details until all funds have been safely withdrawn from this iteration of tBTC. Thesis is now helping early users withdraw any BTC that had been deposited.

The project lead behind the new system, Thesis CEO Matt Luongo, sent the following statement to CoinDesk via a spokesperson:

"While the tBTC dapp was being tested over the weekend in its alpha version, a couple of community members put a few BTC into the contract before testing had concluded. Meanwhile, an issue in the dapp that was missed by our security audit was found by two of our contributors, and we decided to pause deposits for now to ensure the safety of funds. It is thanks to the strength and engagement of our community that this was identified quickly and all funds are safe."

Luongo said the priority now was to further enhance the security of the system before announcing a timeline to re-deploy it. A new audit is being conducted by Trail of Bits; another auditor will also be enlisted and its bug bounty has been increased tenfold.

Luongo first announced that tBTC had been paused at 5:58 UTC on Monday. It had been live for two days. He credited a member of the Thesis team for finding the flaw, and Summa's James Prestwich for verifying it.

Luongo wrote later in the Twitter thread, "Because the system is young and most minters are active community members, I think we can get this done in 1 to 2 days. Though we fixed the issue in code last night, we don't want to expose it until all funds are drained."

Prestwich declined to comment. Luongo wrote on Twitter that a full post-mortem is forthcoming. A Thesis spokesperson told CoinDesk this will likely be released tomorrow.

The security model for tBTC is described in its documentation. It delineates four things Thesis can do with its key to the smart contract. Among those, it can pause new deposits one time for 10 days. This is how Thesis stopped deposits Monday, but the option can only be used once.

That documentation also says, "The first version of tBTC has been built without any ability to upgrade contracts." The Thesis team has not confirmed that it will deploy a whole new smart contract.

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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Bug Forces Shutdown of Bitcoin-Backed Ethereum Token tBTC - CoinDesk - CoinDesk

The third part of The Breakdowns Money Reimagined series looks at the role of bitcoin and USD stablecoins in the new global monetary order.

Niall Ferguson has called this moment an age of experimentation when it comes to currencies.

One of the unique features of this moment is the experiments are not limited to the traditional actors. It is not just nation-states trying to elevate their currencies in the face of the global dominance of the dollar, but non-sovereign monies born of decentralized networks that are plausible contenders in this game of currency thrones.

Bitcoin was a byproduct of the last financial crisis. This connection was immortalized in the message embedded in the genesis block: Jan 03/2009 Chancellor on the brink of a second bailout for banks.

More than a decade on, in our new financial crisis, the size, scale and implications of that bank bailout seem positively quaint in comparison.

This episode looks at wherebitcoinand other permissionless, non-state cryptocurrencies fit in the battle for the future of money.

It starts with a look at the bitcoin narrative in the wake of the market crash. With the most significant stock market correlation of its life, did bitcoins digital gold narrative evaporate alongside the S&P 500?

From there, we move to an asset that has been massively in demand since the beginning of the crisis: USD stablecoins. We explore whether this is simply an affirmation of the supremacy of the dollar or represents a more disruptive force in the global monetary order.

We conclude with a look at the relevance of bitcoin on the other side of the crisis. As the market moves from deflationary to inflationary, there are many who will be looking to hard assets and sound money as a cure. In that context, bitcoin could thrive.

This episode was produced by NLW and Adam B. Levine, scored and announced by Adam B. Levine, and edited by Rob Mitchell, with production assistance from the rest of the team at CoinDesk.

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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Where Bitcoin Fits in the New Monetary Order - CoinDesk - CoinDesk

Bitcoin has struggled to garner much momentum in recent times, with its price action being largely suppressed by the immense selling pressure found within the lower-$10,000 region.

The five-figure price region has been a resistance level for the cryptocurrency ever since its decline from 2017 highs of nearly $20,000.

Each visit to this region has been short-lived, and is typically followed by capitulatory declines.

Analysts are now noting that Bitcoins consolidation may not last long, as it could be on the cusp of printing a $1,000 candle as it nears the apex of a large technical formation.

At the time of writing, Bitcoin is trading up just under 1% at its current price of $9,770. This marks a notable climb from recent lows of under $9,400 that were set after BTCs latest rejection at $10,000.

The price action seen throughout the past couple of weeks can largely be characterized as consolidation, as it has struggled to garner any sustainable momentum in either direction.

It now appears that this lackluster trader period has led to the formation of a massive ascending triangle that could lead Bitcoin to see immense volatility in the days and weeks ahead.

One options trader recently spoke about this typically bullish pattern, explaining that he believes a confirmed breakout could swiftly lead the benchmark crypto to over $10,400.

BTC: Watching for a breakout. LTF showing an ascending triangle within an ascending triangle. First target is 10433~ if so. Will watch swing level at 10085.5 for a quick S/R flip, wouldnt want to see a strong rejection there, but rather a short one before it flips support, he explained.

Image Courtesy of Chase_NL

Assuming that this ascending triangle formation plays out and leads Bitcoin higher, it is possible that the cryptocurrency could soon post a massive green candle.

Another trader mused this possibility in a tweet, explaining that the key resistance he is currently watching sits at roughly $9,850.

He notes that a decisive break and hold above this level could lead it to see some massive near-term upside.

Green is all thats holding us from printing a $1000 green candle imo, he explained while referencing the chart seen below.

Image Courtesy of George

How it responds to the triangle pattern it is caught within could be the sole factor that determines whether it is able to post a massive continuance of its mid-term uptrend.

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Heres Why Traders Think Bitcoin is on the Cusp of Printing a $1,000 Candle - Bitcoinist

Bitcoin is rallying again, and some analysts are looking at a potential driver of even higher prices: new data showing that mining pools are hanging onto the cryptocurrency rather than sending it to exchanges for a quick sale.

But as with a lot of bitcoin analysis, the interpretation isn't always clear-cut; the data might be seen differently as a sign of a weak market.

You're readingFirst Mover, CoinDesk's daily markets newsletter. Assembled by the CoinDesk Markets Team, First Mover starts your day with the most up-to-date sentiment around crypto markets, which of course never close, putting in context every wild swing in bitcoin and more. We follow the money so you dont have to. You cansubscribe here.

Charts provided by the Korean analytics firm CryptoQuant show a slowdown in outflows from cryptocurrency mining pools, which essentially aggregate computing power to increase their collective chance of getting more bitcoin.

The Beijing-based F2Pool, for example, which currently accounts for 17.1% of the Bitcoin blockchains total computing power, witnessed an outflow of 139 bitcoins on Wednesday, the fewest in nearly six months, according to CryptoQuant. Of those, 29 bitcoins got sent to cryptocurrency exchanges, the fewest in at least a year.

Taken alone, the slowdown shows mining pools are hanging onto the bitcoin rather than transferring them to an exchange for a quick monetization.

But what it means for prices is trickier.

One possibility is the miner community might be expecting a big price rally at some point down the road.

Another is miners might be worried the market is looking weak or thin: If they transferred their bitcoins to an exchange en route to cashing out, the heavy surge in sell orders might cause prices to collapse.

Mining pools typically account for the highest percentage of coins sent to exchanges, so they tend to have a big impact on the market.

The dynamic is analogous to the delicate balance some central banks face when trying to build up foreign reserves or intervene in currency markets. Take the Reserve Bank of India, for example. When the market for the Indian rupee is strong and trending higher, its easier for the RBI to buy U.S. dollars without driving down the value of its own currency. If the central bank buys dollars while the rupee market is soft, the sell-off in the local currency only deepens.

The very exercise of studying mining pool behavior highlights the emerging field of on-chain analysis, in which data gleaned directly from the public blockchain network are aggregated, sorted and charted to map out where the money is flowing.

There are a lot of forces at play right now in the bitcoin market. Originally, the cryptocurrency was designed to be used in an electronic peer-to-peer payment network, but increasingly it has become popular among many investors as a potential hedge against inflation.

And while there's the possibly inflationary forces of trillions of dollars of emergency money injections by the Federal Reserve and other central banks, there's also the deflationary impact of the coronavirus-induced recession, the worst since the early 20th century.

With so much to think about, the thinking goes, on-chain analysis can provide additional clues on where prices are headed.

One issue for the analysts is the data can sometimes seem contradictory.

Another on-chain metric is the miners rolling inventory, or MRI.

This gauge measures changes in bitcoin inventory levels held by the miners. An MRI above 100% means miners are selling more than they mine, while a sub-100% reading indicates hoarding selling less than they mine and building inventory.

On Wednesday the MRI stood at 114%, meaning miners were reducing inventory over the past 24 hours by spending more than they mined. The MRIs for one-week, five-week and 12-week periods also are hovering above 100%.

These signals might be an indication miners see the market as strong enough to absorb the extra selling pressure.

Such efforts to scrub the on-chain data and then interpret them show how cryptocurrency-market investors and analysts are scrambling to keep up with fast-evolving digital-asset markets that are in many ways similar to traditional markets, but in other ways fundamentally different.

"Bitcoin is a bit [of an] alternative, and there aren't really established fundamentals for it, Delphi Digitals Yan Liberman said Thursday on a panel at CoinDesks Consensus: Distributed conference, where analysts discussed different ways of slicing on-chain data.

In that context, he said, the specialized practice kind of becomes fundamental for bitcoin.

Tweet of the day

Bitcoin watch

BTC: Price: $9,572 (BPI) | 24-Hr High: $9,867 | 24-Hr Low: $9,262

Trend:Bitcoin is exhibiting high price volatility while heading into the weekend. The top cryptocurrency by market value fell from $9,750 to $9,262 during the 60 minutes to 03:00 UTC, only to rise back above $9,700 during the early European trading hours.

At press time, bitcoin is changing hands near $9,590, representing an over 18% gain from the low of $8,100 observed a day before Monday's block reward halving. As such, traders may conclude that the pullback from recent highs above $10,000 has ended and the broader bull trend from March lows has resumed.

However, chart analysts suggest a convincing move above the $10,074 is needed to restore the bullish bias. "Bulls need to close this week above the previous week's high to remain in full control,"tweeted NebraskanGooner, a popular trader and an adviser to blockchain intelligence firm Glassnode.

Indeed, a weekly close (Sunday, 00:00 UTC) above $10,074 would invalidate the buyer exhaustionsignaled by the previous week's "spinning top" candle and restore the bull trend on the technical charts.

That said, the bullish weekly close may remain elusive if the cryptocurrency fails to hold at or over current levels according to renowned analyst Josh Rager. "A failure to close (the day) above $9,550 would indicate a top has been made,"Rager tweeted.

The cryptocurrency is currently trading above $9,550, having bounced up from $9,200 early Friday. However, the price bounce lacks credence due to low buying volumes and could be short lived. In fact, the entire rise from $8,100 to $9,940 seen earlier this week has been accompanied by anemic buying volumes.

All in all, a re-test of $9,200 in the next 24 hours cannot be ruled out. Acceptance under that level would shift risk in favor of a drop to the next support at $8,980.

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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First Mover: Bitcoins Hot Again and Crypto Miners Are Hoarding Or Are They? - CoinDesk - CoinDesk

Bitcoins steady price gains over the past few days ended Friday. With the halving in the rearview mirror, cryptocurrency traders could consider the impact of a continued global economic slowdown after new data showed retail sales dropped to record lows and unemployment numbers continue to worsen.

The worlds first cryptocurrency is trading below its 10-day and 50-day moving averages, a bearish technical indicator. At press time, BTC was trading down 3.4% over 24 hours at $9,340 00:00 UTC Friday (4 p.m. ET). Bitcoin had experienced steady gains since May 13, yet stumbled in early trading at 02:00 UTC Friday, quickly dropping 5%. Since then, bitcoin clawed back some gains but continues to trend downward.

Outside events are much more likely to impact bitcoins price, like a possible crash of the economy" because of COVID-19, said Alessandro Andreotti, an Italian over-the-counter cryptocurrency trader.

Uncertainty still exists in equities amid the coronavirus pandemic, and stock markets have performed poorly this week on the murky economic outlook. Data confirmed that: a drop in retail sales by 16.4% in April, the worst since 1992, and U.S. unemployment claims up over 36 million in the same period.

The S&P 500 U.S. stock index closed down 2.2% for the week, its worst performance since late March. In Europe, the FTSE 100 index of largest publicly traded companies ended trading down for the week 2%. For Asia, the Nikkei 225 of Japans largest companies ended the week down overall for the first time since April.

However, not all traditional assets are performing poorly. Gold and silver are looking strong, said Rupert Douglas, head of institutional sales at crypto asset manager Koine. Gold is up 2.8% for the week.

I think bitcoin will be strong, too, Douglas added. While losing some steam Friday, there is confidence among stakeholders bitcoin can turn things around and its price rise steadily.

One trader points to less leverage in the derivatives market as a sign of that. The number of open leveraged positions are down between 25%-50% across major exchanges since March, said Nicholas Pelecanos, head of trading at crypto fund NEM Ventures.

On Seychelles-based derivatives exchange BitMEX, open interest hit as high as $1.1 billion back on February 9. Since March 12s bitcoin price crash caused $700 million in automatic liquidations on BitMEX, daily open interest has dropped significantly. On Friday it was at $596 million.

To be sure, it appears derivatives traders have less of an appetite for leverage positions specifically on BitMEX, where directional bets can be levered up to 100 times collateral.

This gives us a good indication that if a sell-off begins to materialize, it will be of smaller magnitude than what we saw in March, Pelecanos added.

Andreotti, the over-the-counter trader, says that despite his concerns about economic disruptions, he sees the upward trend for bitcoin to return soon. I think its going to maintain the same demand. Prices might go up a little bit, around the $10,000 range, he told CoinDesk.

The $10,000 level is a key price range to pique the interest of traders wanting to hit the buy button, according to Katie Stockton, an analyst at Fairfield Strategies. A breakout above $10,000 level would likely give way to improved short-term momentum, Stockton noted.

Digital assets on CoinDesks big board are in the red on Friday. The second-largest cryptocurrency by market capitalization, ether (ETH), slipped 4.2% in 24 hours as of 20:00 UTC (4:00 p.m. ET).

Losers in 24-hour trading include bitcoin sv (BSV) in the red 4%, iota (IOTA) lower by 3.7% and zcash (ZEC) slipping 3.5%. Ethereum classic (ETC) was the lone winner, up 3.5%. All price changes were as of 20:00 UTC (4:00 p.m. ET) Friday.

Oil was trading rose Friday by 5.8%, ending the week up 20% because crude supply adjustments have been positive news. As major oil-producing countries have inherited the promise to reduce production, the International Energy Agency predicts that the tight supply of crude oil in the second half of this year will support oil prices, said Nemo Qin, senior analyst for multi-asset brokerage eToro.

U.S. Treasury bonds were mixed Friday. Yields, which move in the opposite direction as price, were up most on the 10-year, in the green 3%.

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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Market Wrap: Bitcoin Dips as Stock Markets Close Lower on the Week - CoinDesk - CoinDesk

In mid-April, news.Bitcoin.com researched the popular stock-to-flow (S2F), which shows the price of a single bitcoin reaching $55K and even six figures. At the time, analysts questioned measuring bitcoins price in this manner and more recently, a few others have been criticizing the method as well. Just recently, a research report written by the author Francis Tapon finds eight flaws in bitcoins S2F model. Additionally, the well known crypto proponent Eric Wall has shown criticism toward Plan Bs S2F tweets as well.

For well over a year now, crypto advocates have discussed the popular editorial called Modeling Bitcoins Value with Scarcity written by the Twitter account Plan B. The report has caught the attention of the community for quite some time. This is because it predicts the price of a single BTC will be at least $55,000 or even $150,000 in the future. Certain types of crypto proponents love the research and stock-to-flow (S2F) models, but skeptics believe its because it may pad their bullish confirmation bias that someday BTC will be worth tens of thousands and even hundreds of thousands at some point in time.

Basically, the S2F ratio divides abundance with demand by treating bitcoin like commodities such as gold or platinum. This means any analyst can use the model to evaluate the current number of bitcoins in circulation against the number of coins mined during a specific year. The last BTC halving plays a crucial role in the S2F model and if Plan Bs predictions are correct, BTC could be around $55K within the next two years.

However, not everyone believes the model and news.Bitcoin.com discussed this situation during the first week of April. But now there is more evidence that the S2F model may not be as reliable as everyone believes and two critics who have explained publicly why S2F may be bunk. Just before the halving, author Francis Tapon who wrote the books The Unseen Africa and The Hidden Europe, wrote a research report on Plan Bs model.

Tapons argument gives the reader eight reasons why the stock-to-flow model has flaws. The number one reason why S2F has problems is because it defies physics. Some critics say that the stock-to-flow model will break in 2140, which is when we cannot mine new bitcoins. At that point, the S2F model predicts that the price of bitcoin will go to infinity, Tapon explains. Although that is a problem, bitcoins stock-to-flow model is doomed to break at least 100 years before that date. Tapon also stresses in his report, that there are two things BTC would have to do:

[One] Bitcoins price would have to double every year, on average, for the next 30 years. Thats 30 doublings. No asset has ever come close to such a performance. Maybe pre-IPO Microsoft or Google or Walmart had such a rise for 10 years. But doublings become extremely difficult once an asset becomes large. [And two] we would need to invent nuclear fusion reactors and become a Type 1 Civilization. Bitcoin consumes vast amounts of energy. The higher the price goes, the more it consumes.

The seven other flaws Tapon has found include the fact that not everyone agrees on what is golds stock-to-flow ratio, golds stock-to-flow isnt fixed, golds stock-to-flow does not drive its price, some metals with extremely low stock-to-flow ratios are worth more than gold, S2F doesnt explain the prices of other cryptocurrencies, S2F assumes that bitcoins demand continues to grow exponentially, and S2F underestimates the powers that be.

It is also worth noting that Plan B has blocked Francis Tapon on Twitter as well. According to Tapon, he had sent Plan B his analysis for review and Plan B responded by saying: Blocked Reason: pure click-bait (flaw fail doomed, only old and debunked arguments). However, Tapon thinks that his arguments are valid and concluded his report by saying:

The stock-to-flow model has been a novel way of looking at bitcoins early, meteoric years. However, it will soon break because it predicts nonstop doubling year after year. Our solar system prohibits nonstop doubling. Lets be happy with a 14x return in the 2020s. That would result in a $100,000 BTC price in 2029. Still, I secretly hope Im wrong and that the stock-to-flow model is right.

In addition to Tapon, the digital currency proponent Eric Wall has been tweeting about Plan Bs models and his statements as well. On Saturday, Wall tweeted two photos of Plan B explaining what it would take to invalidate his S2F model. Despite the number of critiques published and contradictions, a slew of bitcoiners wholeheartedly believe in the S2F model.

On May 12, the secretary and vice-chairman of the Digibyte Foundation Rudy Bouwman tweeted: Preparing for the next bull run? How long can miners that havent switched off, continue mining with a loss? [The] S2F model has proven highly accurate in charting price performance. BTC to +$100K in the next 2 years? Two days prior, Quantmario published a report leveraging the S2F model called The LGS-S2F Bitcoin price formula It is safe to say that the stock-to-flow model isnt going anywhere for quite some time, but the S2F theory does have its critics.

What do you think about the stock-to-flow model and the criticism? Let us know what you think in the comments below.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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S2F Hopium: Report and Twitter Critics Find Flaws With Bitcoin's Stock-to-Flow Ratio - Bitcoin News

The market research organization, The Tokenist, recently published a report called Comparing Public Bitcoin Adoption Rates in 2020 vs 2017. The studys findings give a comprehensive look at the cryptocurrency ecosystem between 2017 and now. The researchers survey shows that since the post-Covid-19 economy is setting in, trust in bitcoin has grown 29% in the past three years.

A recently published study from the crypto think tank, The Tokenist, details that there is a growing trust in bitcoin over traditional investments like gold, stocks, and real estate. The market researchers leveraged a survey that was taken in April 2020 (5,421 participants in 24 countries) and collated several surveys from 2017 as well. The Tokenist utilized these polls to see how attitudes and perceptions have changed since the price fluctuations and the impact of Covid-19.

Faith in large financial institutions has been steadily waning for more than a decade and the COVID-19 pandemic has only accelerated this process, the report highlights. Bitcoin, itself developed in the years after the 2008 market crash as an alternative to traditional assets, stands to be a major beneficiary of this trend.

The Tokenist also leveraged surveys from the companys mailing list and another that saw 4,852 participants in 17 countries. According to the studys findings, The Tokenist researchers have found that there is a trend of individuals with positive sentiment regarding BTC as a long term store of value.

The findings note that over 45% of respondents preferred Bitcoin rather than stocks, real estate, and gold, and 61% of the total respondents (and 78% of millennials) are now somewhat familiar with BTC, and 14% of millennials have owned the asset. The report continued:

47% of respondents trust Bitcoin over big banks, an increase of 29% in the past three years. 43% of respondents, and 59% of millennials, feel that most people will be using Bitcoin within the next decade. In 2020, 44% of millennials report that they are likely to buy BTC in the next five years. More than one in three millennials would hold onto Bitcoin they are given, while a slightly smaller number (27%) would immediately sell it. 39% of male millennials now have no problem with the intangible nature of BTC, and a quarter of millennials as a whole report the same attitude.

The report finds that the attitude toward BTC, in general, is more positive and optimism has increased by 27% during the last three years. 60% of respondents felt that Bitcoin is a positive innovation in financial technology, The Tokenists report concludes. Increased familiarity with Bitcoin has convinced many that it is a positive force, the papers authors added.

What do you think about The Tokenists researchers surveys and findings? Let us know in the comments below.

Image Credits: Shutterstock, Pixabay, Wiki Commons, The Tokenist

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Covid-19 Economy Fuels Faith in Crypto: Trust In Bitcoin Over Banks Increased 3X Since 2017 - Bitcoin News