Bitcoin Forum
May 22, 2024, 03:03:35 AM *
News: Latest Bitcoin Core release: 27.0 [Torrent]
 
   Home   Help Search Login Register More  
Pages: [1]
  Print  
Author Topic: S2F debunked?  (Read 80 times)
brainactive (OP)
Member
**
Offline Offline

Activity: 159
Merit: 72


View Profile
May 25, 2021, 10:23:20 PM
 #1

S2F is based on the premise that after each halving, bitcoin becomes more scarce as the amount of bitcoin produced by miners is essentially halved.

Shouldn't this already be priced in given that the halvings are pre-programmed and are therefore already known publicly?

As a thought experiment, if Tesla was "pre-programmed" to exactly double its earnings every 4 years (and have constant earnings in between the 4 years) and this was already known to everyone since the inception of the company, wouldn't the stock price already price in this fact? This seems to make more sense than the stock price starting to pump right at the having price?

Maybe a few years ago, we can use the argument that bitcoin markets are not mature enough to be considered "efficient" but now it seems pretty clear how fast information flows into the markets especially with the Elon tweets recently. So wouldn't it be fair to say that halvings should already be priced in and S2F is rubbish at best at predicting future price?  
franky1
Legendary
*
Offline Offline

Activity: 4228
Merit: 4490



View Profile
May 26, 2021, 01:48:12 AM
 #2

bitcoins are not mined in patterns of

              ___/
       ___/
___/

nor are bitcoins mined in random length step patterns of
                 __/                       <- how the mythical bitcoin s2f tries to display it
    ______/
   /
_/

this is how bitcoins supply is actually mined


the weird step grading of the mythical 'bitcoin S2F' is produced by adding in a 'bitcoin price average' which then tweaks the steps..
yes adding in price info makes the steps follow a general price line and step

thus its not a predictor..
it uses the price to cause a pattern that follows the price.
it does not predict the future. it just displays the past


remember.
bitcoins mined supply is a smooth curve. not a step with random length of flat and steps
the randomness of the flat and step length of 'bitcoins s2f' is produced by using price data to case the lines to fir near the price pattern. meaning its just displaying the price resembles the averaged price..

I DO NOT TRADE OR ACT AS ESCROW ON THIS FORUM EVER.
Please do your own research & respect what is written here as both opinion & information gleaned from experience. many people replying with insults but no on-topic content substance, automatically are 'facepalmed' and yawned at
Pages: [1]
  Print  
 
Jump to:  

Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!