Ethereum co-founder Vitalik Buterin supported Anthony Sassano, creator of The Daily Gwei, and urged PlanB to delete his account due to the failure of the Stock-to-Flow (S2F) model supported by the latter.

Stock flow isn’t really looking good right now.

I know it’s rude to brag, but I think financial models that give people a false sense of certainty and a sense of destiny that growing numbers will rise are harmful and deserve all the teasing they receive. https://t.co/hOzHjVb1oq pic.twitter.com/glMKQDfSbU

— vitalik.eth (@VitalikButerin) 21 June 2022

“Evil is rude, but I think financial models that give people a false sense of certainty and destiny about the growth of asset values ​​are harmful and deserve ridicule.” Buterin wrote.

The Ethereum co-founder added an S2F chart to the post that shows a significant divergence between the current bitcoin price and its expected value resulting from the model.

Shortly before Buterin’s tweet, PlanB provided an updated version of Stock to Stream based on the latest data. He acknowledged that both options worked well for three years until March 2022.

“Right now: either BTC is massively undervalued and will soon recover, or S2F will be less useful in the future”wrote the analyst.

#bitcoins S2F original 2019 model (grey) and newest fit (white dots) to the latest data. The S2F model definitely performed well from Mar2019 (BTC 4K) to March2022 (BTC 45K). For now: either BTC is extremely undervalued and will return soon, or S2F will be less useful in the future pic.twitter.com/JdnLINpzTV

— PlanB (@100trillionUSD) 20 June 2022

PlanB reacted cautiously to Buterin’s criticism. He said many of them “found scapegoats for failed projects or bad investment decisions” after the accident. And he added that this is being applied to, including by leaders.

After a crash, people look for scapegoats for failed projects or wrong investment decisions. Not only recruits, but also “leaders” fall victim to blaming others and playing the victim. Remember those who blame others and those who stand strong after an accident. https://t.co/4nJdHq84pm

— PlanB (@100trillionUSD) 21 June 2022

Next, PlanB presented a chart of five different Bitcoin price prediction models. According to the drawing, the most accurate picture is given by estimates based on the complexity and cost of mining the first cryptocurrency. S2F, on the other hand, offers an overly optimistic view.

Predicting is difficult, especially the future. EMH even says it’s impossible to predict financial markets. For those still interested in models, here are 5 BTC valuation models:
— Time (log regression, rainbow) and S2F too high
UTXO/TX too low
– Difficulty/Mining_cost is currently the best pic.twitter.com/9FYCbWmbp7

— PlanB (@100trillionUSD) 21 June 2022

Recall that in November 2021, Huobi analysts described the Stock-to-Flow model as untenable.

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