So there's a war of words brewing over on Twitter, this time between Ethereum co-founder, Vitalik Buterin, and quantitative analyst, PlanB, who is the creator of the Bitcoin Stock-to-Flow model. Buterin has taken shots at the Stock to Flow price model, which he calls harmful, adding that proponents of financial models "deserve all the mockery they get".
PlanB, who previously projected that Bitcoin would surpass gold as a store of value in 2021-2024 and real estate in 2024-2028, had also predicted that the price of the cryptocurrency would rise as high as $288,000 by the end of 2024.
He has, however, been criticized for spreading hopium as Bitcoin has since fallen from an all time high of nearly $69,000 in November 2021 to trade below US$18,000 this month. Like El Salvador's president, Nayib Bukele, however, PlanB continued to maintain public composure under pressure.
Buterin was having none of it though. With all cryptocurrencies, including Ethereum, still reeling following last week's bloodbath, Buterin made no secret of his feelings about these financial models.
"Stock to flow," he tweeted. "Is really not looking good now. I know it's impolite to gloat and all that, but I think financial models that give people a false sense of certainty and predestination that number will go up are harmful and deserve all the mockery they get."
And let me just say, ouch.
PlanB is, of course, not backing down. Instead, he argued, "After a crash, some people are looking for scapegoats for their failed projects or wrong investment decisions. Not only newbies but also "leaders" fall victim to blaming others and playing the victim."
"Remember those who blame others and those who stand strong after a crash," he urged his followers.
And if this wasn't shade enough, he then took some shots, or at least retweeted one, aimed at Ethereum's performance, this time a tweet originally shared by @BitcoinIsSaving which argued that Ethereum's tokenomics were entirely based on stock to flow. Buterin is yet to respond.
And so, friends, tell me, what are your thoughts about the stock to flow model. Are you team PlanB? Do you support Buterin's perspective? Or are you somewhere in the middle? I'm curious.
On another note, at the time of this article, the market's green. Most projects have recorded a turnaround in the past 24 hours though some fear that it's just a fake out and the bottom isn't in yet. In some cases, the crows are even hopping about, with even the Bank of International Settlement wagging its fingers at investors with comments that basically sum up to say, we told y'all investing in crypto was dangerous. Well, friends, what do you think of it all? And did you peep the gains recorded by meme coins Dogecoin (12+%) and SHIB (27+%) over the past 24 hours? I'm only thinking of Mr. Keith Johnson, the man who sued Elon Musk, that's all.
Well, friends, I'm off again in search of another story. Please remember to be careful. Markets may look green today and that may encourage a bit of enthusiasm, but always remember, one should only invest in any project- crypto or otherwise- after careful, careful, careful research, and even then, invest only what you are prepared to lose. We'll chat soon.