Stock to Flow

Market Terms

We don't know everything about the markets.  We're just devoted to learners.  Taken from those smarter than ourselves, here's how we define Stock to Flow.

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.