"A first reaction could be that it is a great investment opportunity. A better reaction (from an EMH and non arbitrage point of view) would be that it is too good to be true." - PlanB
If the efficient market hypothesis requires that known events be priced in, then how could the S2F be a model for Bitcoin's price? When such an obvious and unchanging piece of information is available, shouldn't the market price it in? Continuing with the foundation laid from yesterday's article, we read Plan B's piece on what a risk & return model might tell us about the market's pricing of Bitcoin ahead of the halving.
Drop some applause on the original article at the link below and don't forget to follow @100TrillionUSD (PlanB) if you haven't already!
https://medium.com/@100trillionUSD/efficient-market-hypothesis-and-bitcoin-stock-to-flow-model-db17f40e6107
The brilliance of the price system is in coordinating the values, deeply limited knowledge and scarce resources precisely to their highest value need without...
Returning to a classic! I revisit Gigi's "21 Lessons of the Bitcoin Rabbit Hole," starting with Chapter 1: Philosophy. What does Bitcoin have to...
Another excellent piece by @beautyon_ and discussion on the nature of Bitcoin's uncontestable monetary standard and what it means for our future. Its not...