Cryptocurrency Q&A
How do you calculate stock-to-flow?
How do you calculate stock-to-flow?
Chiara
Sat Feb 08 2025
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6
answers
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I am trying to understand how to calculate the stock-to-flow ratio for a commodity, such as Bitcoin. I've heard this metric is important for understanding the scarcity and value of assets, but I'm not sure how to apply the formula correctly.
6 answers
BitcoinBaron
Mon Feb 10 2025
The stock-to-flow ratio is a metric used to evaluate Bitcoin's scarcity.
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Andrea
Mon Feb 10 2025
Scarcity is often viewed positively in the market, as it can lead to increased demand and value.
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GeishaMelody
Mon Feb 10 2025
It is derived by dividing the current circulating supply of Bitcoin by the annual issuance of new coins.
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Maria
Mon Feb 10 2025
This ratio provides insight into how rare Bitcoin is in comparison to its annual production.
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Federica
Mon Feb 10 2025
A higher stock-to-flow ratio signifies a greater level of scarcity for Bitcoin.
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