avatar

Thriller Coin Talk - S3EP11: Bitcoin Stock to Flow Ratio

Thriller "A Bitcoin Zine"
Thriller "A Bitcoin Zine"
Episode • Sep 17, 2019 • 31m
Bitcoin, Stock-to-flow Model:

Stock-to-flow Ratio:

Stock-to-flow Ratio for a commodity is defined as it’s years of inventory relative to annual supply. While the economic utility of a consumable good is created when it is destroyed or used up, the utility of investment assets lies in their possession and later resale. Industrial commodities therefore have low stock-to-flow ratios, this is to say, inventories usually only cover consumption demand for a few months. If there were no inventories at all, supply would have to correspond exactly to production and demand exactly to consumption. However, if there are...

Switch to the Fountain App