Bitcoin anonymous analyst PlanB reveals the four main reasons for initially buying Bitcoin.

Do you still remember why you first bought Bitcoin? The Bitcoin anonymous analyst PlanB, who developed the Stock-to-Flow (S2F) model, revealed on July 7 a series of tweets outlining the four main reasons why he initially purchased Bitcoin.

Most People Haven't Realized the Good of Bitcoin

PlanB, a well-known anonymous analyst in the market who claims to be a member of an institutional team managing $100 billion in assets, is best known for developing the Stock-to-Flow (S2F) model in the cryptocurrency market. On July 7th, the analyst tweeted a series of tweets revealing the four main reasons why he initially purchased Bitcoin. In the tweet, PlanB stated:

Why I bought Bitcoin in 2015-2016 (prior to developing the model):

• There are 46 million millionaires globally, but only 21 million BTC
• Gold or USD cannot be used in space or on Mars, need alternative
• No one can freeze accounts or block transactions
• 0% interest rate is better than negative interest rates

For those familiar with Bitcoin, its fixed total supply, non-physical nature, and decentralized system architecture set it apart from other assets in the world, giving it unique asset value. Additionally, since 2015, bank deposit rates have been continuously decreasing, with many European countries implementing negative interest rates. In this financial environment, Bitcoin has become a safe haven for the public to avoid the devaluation of deposits. PlanB points out that mainstream consumers are still unaware of the benefits of Bitcoin as money:

"Isn't it interesting? There is about $400 billion in savings accounts at Dutch banks, with an annualized interest rate of 0% (negative for deposits over $1 million). This $400 billion could be put into Bitcoin to earn at least 6% interest, generating $24 billion in interest in one year. Most people in the Netherlands are still asleep (meaning they haven't noticed this)."

It is funny isn't it? In The Netherlands people have about $400B on their bank savings accounts, earning 0% interest (above $1M interest rate is negative). This $400B could be put in bitcoin and put to work to earn at least 6% interest, $24B/yr. Most people in NL are asleep ..yet

— PlanB (@100trillionUSD) July 7, 2020

Controversial Valuation Model

PlanB's Stock-to-Flow model is currently the most famous Bitcoin valuation model in the market. According to previous reports, PlanB released an optimized version of the valuation model on April 28th, introducing a "phase change" factor into the existing Stock-to-Flow ratio, providing a new approach to predicting Bitcoin prices. According to the new model's prediction, the price of Bitcoin will reach $288,000 by 2024. Although Bitcoin prices have largely aligned with the model so far, the market's credibility in the model remains polarized.

Nico Cordeiro, Chief Investment Officer and Fund Manager of Strix Leviathan, Bitcoin whale JOE007, and Ethereum co-founder Vitalik Buterin have all criticized the Stock-to-Flow model. Is the model a reliable valuation model or just a marketing tactic? Only time will tell.