In a bold prediction by PlanB, renowned for his expertise in the Stock-to-Flow model, Bitcoin is forecasted to skyrocket to $5 million by 2032.
This article delves into the methodology behind this prediction and explores other significant forecasts shaping the future of cryptocurrency.
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Overview of the S2F-Based Bitcoin Price Forecast for 2032
Renowned analyst PlanB shared a prediction on March 18, 2024, stating that the price of Bitcoin could potentially rise to $5 million by 2032.
PlanB is a prominent analyst known for his Bitcoin price predictions using the Stock-to-Flow (S2F) pricing model. At the time of writing, PlanB's X account boasts over 1.95 million followers.
The Stock-to-Flow (S2F) model, used in predicting the price of Bitcoin and other natural resources, measures the scarcity of an asset by dividing its current stock (circulation) by its flow (new supply).
PlanB has been posting Bitcoin price predictions using the S2F model, with the latest prediction covering three halving cycles: 2020-2024, 2024-2028, and 2028-2032.
The Inherent Margin of Error in S2F Model Predictions
Regarding PlanB's prediction, there have been comments pointing out that "accurate predictions, such as an average of XX dollars by XX year, cannot be made with just 3 to 4 limited data points."
In response, PlanB agreed and explained that the S2F model "only shows a general direction and has a large margin of error."
For instance, the BTC price prediction for 2020-2024 forecasted an average of $55,000 according to the S2F model, yet the actual figure was $33,000.
Diverse Long-Term Bitcoin Price Predictions
There are many opinions predicting that Bitcoin will eventually exceed 100 million yen in value. Arthur Hayes, co-founder of the cryptocurrency exchange BitMEX, predicted that BTC might be used as "the currency of AI" in the future, potentially rising to $760,000.
Moreover, ARK Invest's CEO, Cathy Wood, has made a prediction for the Bitcoin price to reach between $600,000 and $1.5 million by 2030.
>> Read more about Virtual Currency Price Forecasts.
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