- Bitcoin trades at a high of USD 7,793
- The so-far accurate Bitcoin stock-to-flow model places a price tag of USD 288,000 by 2024
- The World Economic Forum has launched a Blockchain Deployment Toolkit to help reboot post-Covid19 economies
Despite some frantic trading that sent peaks and lows around today, price still stayed in a relatively tight range between USD 7,658 and USD 7,793, ensuring Bitcoin recorded an every slightly higher high and low today (CoinDesk). Today marks the longest winning streak of days in eight months, as halving talk heats up just over 13 days away from the expected date of 12 May 2020.
Ethereum is enjoying this stay close to USD 200 also, but it will hope to break free of the tight range and breach that, otherwise it, along with many other altcoins — like Ripple at just above 20 cents — will risk falling below current support levels.
And now, crypto commentator PlanB, the creator of the highly popular “Stock to Flow” model that has so far accurately predicted Bitcoin’s price til now, has updated his model to take into account more relevant items and now thinks that an average price of USD 288,000 is on the cards.
Writing in a blog post, this is the third ersion of the model, which looks at calculations that push earlier forecasts even higher. Gold and silver have weighed in here, combining with Bitcoin for a new cross-asset model dubbed S2FX.
In essence, PlanB’s model calculated the value of supply of newly minted Bitcoins entering circulation versus the existing supply. This retroactive application has shown the model to be highly accurate at charting the price of Bitcoin, and even last month’s Black Thursday event kept withing predicted range.
— PlanB (@100trillionUSD) April 27, 2020
But Bitcoiners will love that the previous value of USD 100,000 by 2024 has now almost tripled. PlanB explained:
“The S2FX model formula can be used to estimate the market value of the next BTC phase/cluster (BTC S2F will be 56 in 2020–2024)… This translates into a BTC price (given 19M BTC in 2020–2024) of $288K.”
This latest iteration of the model looks at Bitcoin in different clusters, depending on use case. For example, it is deemed a successful proof of concept for payments and electronic gold, as well as a financial asset. All these represent clusters of price points on the new chart. PlanB summed it up:
“Each of the four identified BTC clusters has a very different S2F-market value combination that seems to be consistent with halvings and changing BTC narratives.”
Regardless of whether you follow or support his theory, we now look at the recent developments whereby the World Economic Forum is looking towards blockchain to reboot an ailing global economy.
In its new report, it looks at how deploying several blockchain-based solutions has already helped to address the supply chain inefficiencies and failures that were woefully exposed when various governments dealt with the coronavirus pandemic.
Accompanying the report now is a newly-released blockchain deployment toolkit that WEF hopes will help states and businesses to adapt their supply chains to the current economic situation that will then “accelerate an economic rebound post-COVID-19”.
The Blockchain Deployment Toolkit goes on to cite all the supply chains of pharmaceutical products, medical supplies, and food, which are some of the most-affected sectors, and notes that the current crisis has tested their resilience.
It says that for supply chains to be efficient, they must be transparent, and WEF recommends for distributed ledger technology (DLT) adoption to be how supply chain stakeholders can own a “shared truth”. It writes:
“It was developed through lessons from and analysis of real projects, to help organizations embed best practices and avoid possible obstacles in deployment of distributed ledger technology. It is the culmination of more than a year of global collaboration by 100+ leaders and focused on supply chain and trade use cases. By bringing together competitors in those industries, this toolkit cuts through the hype around blockchain and helps newcomers navigate this promising technology.”
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