Adventures and fascinations of Matt Pāz
One more post on the stock-to-flow model since I think it’s a big deal, and then I’ll leave it alone until we have more data after the next block reward halving.
Here we have a pair of articles by Marcel Burger, another quant, that reviews PlanB’s stock-to-flow model, as featured two posts ago.… Read more
I realized I have never posted about the seminal Stock-to-Flow modeling done by PlanB earlier this year. This is content that is simply MUST READ for anyone interested in Bitcoin.
In this paper, PlanB quantifies Bitcoin’s scarcity using stock-to-flow, and then uses stock-to-flow to model bitcoin’s value.… Read more
After a big down week for the bitcoin price, it’s good to filter out the short term price action and review where we are in the grand scheme of things. One tool I like for this purpose is the Mayer Multiple, which is simply the current bitcoin price divided by the 200-day moving average.… Read more
Last week, Hasu, James Prestwich, and Brandon Curtis released a research paper examining Bitcoin’s ability to function properly in an adversarial environment, A Model for Bitcoin’s Security and the Declining Block Subsidy.
In the paper, the authors introduce a model, which can be reduced to a simple formula, for assessing the Bitcoin protocol’s security based on a number of factors:
… Read moreWe can thus derive that EV(honest mining) EV(attack mining) is the necessary condition for Bitcoin to be secure against rational attackers.