German state-owned bank calls Bitcoin “Ultra-hard type of money”

posted 10 months ago
German state-owned bank BayernLB published a report discussing Bitcoin’s stock-to-flow ratio, and the authors concluded Bitcoin is “designed as an ultra-hard type of money.” BayernLB authors relied on the stock-to-flow model which refers to the supply of a commodity or asset divided by the amount produced annually. This measure points to the abundance or scarcity of a commodity.

Gold is regarded as the commodity with the highest stock-to-flow ratio. However, Bitcoin will become even scarcer than gold, which might a bullish indicator in the long term. Bitcoin will become scarcer than the metal, the report says. BayernLB concluded there is a correlation between the dynamic of an asset’s stock-to-flow ratio and its price.
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