PlanB is of the opinion that Bitcoin is undertraded. He posits that Bitcoin is rarer than both gold and real estate but it is priced by markets 10 to 100 times less. The basis of his comparison is scarcity as the fundamental source of long-term value and puts Bitcoin in a perspective of a misjudged asset in the current financial framework. This mismatch, as PlanB indicates, is a rare opportunity.
The Stock-to-Flow Data Argues the Case
PlanB supports his argument using a stock-to-flow (S2F) chart. The model indicates that the scarcity ratio of Bitcoin is by far higher than that of gold over 50 times more and, by several orders of magnitude, compared to the supply dynamics of real estate. Nevertheless, Bitcoin has a market capitalization that is almost half of gold, standing at approximately $1.7 trillion and the estimated market capitalization of real estate throughout the world, which is estimated at 400 trillion. The statistics indicate the fact that markets are still in the process of fully pricing the fixed supply of Bitcoin.
The log-log regression model of the S2F model of PlanB displays a good historical fit with a regression coefficient of R 2 = 0.995. According to the model, the value of Bitcoin will increase following the 2024 halving when the use will match the scarcity. Although Bitcoin did not follow the model during some of 2021, PlanB concludes that long-term cycles are still in line with supply downsizing. He views scarcity as reiterating itself with time.
Adoption Could Close the Gap
Trust and adoption are some of the important variables in community responses. Gold has thousands of years of history, whereas Bitcoin is not much older than ten years. Nevertheless, ETF inflows, institutional involvement and changing macro conditions might accelerate adoption exponentially. Decreasing yields and growing fiat liquidity can also make Bitcoin even stronger as a scarce asset. PlanB is of the view that these forces may bring about convergence in the next one or two years.
PlanB understands the present as being a turning point. Bitcoin is an unparalleled asset with institutional increasing access, and it is still being significantly undervalued in markets compared to similar assets. As long as adoption keeps climbing, he thinks Bitcoin will be brought nearer to the value based on its scarcity. To him, the price-fundamentals disparity puts this in a particularly important position in the long-term tendency of Bitcoin.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Metaplanet establishes two subsidiaries with plans to invest 4 billion yen to develop the Japanese Bitcoin ecosystem
Metaplanet announced the establishment of two subsidiaries on March 12, namely Metaplanet Ventures and Metaplanet Asset Management. The former will invest 4 billion yen to support the Japanese Bitcoin ecosystem, launching an incubator and funding programs; the latter is positioned as a digital credit and Bitcoin capital market platform, aiming to connect Asian and Western capital markets. The first investment is a maximum of 400 million yen in JPYC.
GateNews11m ago
VanEck and Basic Capital collaborate to include digital asset ETFs in U.S. corporate 401(k) retirement plans
Asset management firm VanEck partners with fintech company Basic Capital to include some digital asset ETFs in its 401(k) retirement plan, providing American retirement savers with an indirect investment opportunity in cryptocurrencies, in line with the restrictions previously withdrawn by the U.S. Department of Labor.
GateNews15m ago
Bitcoin Facing $75K Sell Wall Despite Whale and Institution Buy-Ins, Here’s Why - BTC Hunts
Bitcoin struggles to break the $75K resistance despite increased whale investments and institutional buy-ins. Current trading is at $70,525, influenced by market uncertainty related to global events and upcoming economic announcements.
BTCHUNTS30m ago
Indian police arrest suspect involved in GainBitcoin Ponzi scheme at Mumbai airport
Gate News Report, March 11 — India's Central Investigation Bureau (CBI) announced the arrest of Darwin Labs co-founder and CTO Ayush Varshney at Mumbai Airport on suspicion of involvement in the GainBitcoin Ponzi scheme. It is reported that Varshney was attempting to leave India at the time. Investigations revealed that the scheme was operated by Variabletech Pte. Ltd., which attracted investors by promising high returns on crypto investments. Law enforcement officials accused Darwin Labs of developing and deploying critical technological infrastructure for the scheme, including the MCAP cryptocurrency token and ERC-20 smart contracts. Additionally, Darwin also provided technology for GBMiners.com Bitcoin mining platform, BitCoin Payment Gat
GateNews1h ago
Crypto Social Buzz: Bitcoin, Ethereum, and Emerging Coins Lead Discussion
Bitcoin hits 20M mined coins, fueling debates on supply, institutional buys, and market control.
Zcash seed round and privacy tech drive social buzz, while Tether gains attention via USAT launch.
Ethereum staking, Dogecoin rumors, and TRON AI partnerships dominate crypto social
CryptoFrontNews2h ago
