How Does the 'Stock-to-Flow' Model of Bitcoin Relate to the Consistent Supply of New ASICs? ▴ Learn

How Does the ‘Stock-to-Flow’ Model of Bitcoin Relate to the Consistent Supply of New ASICs?

The stock-to-flow (S2F) model is a valuation model that compares the current circulating supply ('stock') to the annual production ('flow'). The consistent supply of new, more efficient ASICs ensures that the 'flow' of new Bitcoin is maintained according to the protocol's fixed schedule.

The S2F model does not directly account for the ASIC supply, but the efficiency of ASICs is the mechanism that ensures the 'flow' remains constant regardless of demand for mining.

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