Bitcoin’s Stock to Flow (S2F) model is one of the leading quantitative models that aims to predict the price of Bitcoin until 2026. It measures the current stock of an asset against the flow of new production or how much is mined in a year.
It is the first model that attempts to quantify the relationship between the relative scarcity of the first-ever scarce digital currency, Bitcoin (BTC) and its price.
Bitcoin is scarce. In fact, it is the first-ever scarce digital object to exist. There are a limited number of coins in existence and it will take a lot of electricity and computing effort to mine the remaining outstanding coins, therefore the supply rate is consistently low.