"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
Our monetary system has confiscated trillions in resources and value by corrupting the very incentives that keep our economy healthy and resilient… in that...
"Supplying liquidity is an investment, and we need to treat it accordingly. Like lending money or buying stock, investors commit capital for a period...
With the Bitcoin prices heavily depressed comes an enormous number of depressed bitcoiners. Time to take a step back and look at some of...