STOCK TO FLOW MODEL: PROOF OF NON-LINEARITY

In the paper at hand, we provide a formal derivation of the Stock to Flow Model and prove its non-linearity. We show that more than one predictor variable is needed for a correct
specification; global transaction volume or money supply should be distinguished from the stock to flow ratio to avoid distortions. Our enhanced Capped Stock to Flow Model results in a fair Bitcoin value of around $25'000 by the end of 2020.
Read the full paper here