A means to measure the abundance of a particular resource. It’s determined by the amount of a resource held in reserves divided by the amount that is produced annually. The Stock to Flow ratio essentially shows how much supply enters the market each year for a given resource relative to the total supply. The model has historically been applied to gold, but recently has been applied to bitcoin. Advocated of the model claim that BTC is a resource comparable to gold in that it’s scarce, costly to produce, and its maximum supply is capped at 21 million coins.
Stock to Flow
Market Terms
We don't know everything about the markets. We're just devoted to learning. Taken from those smarter than ourselves, here's how we define Stock to Flow.