In a report, the Bavarian State Bank claims that Bitcoin is in common with gold in that it can “mine only a limited amount”. Applying the “stock / flow ratio” used to calculate the appropriate price of gold to Bitcoin, the appropriate price is calculated from “current distribution volume (stock)” and “future mining volume (flow)” did.
Bitcoin has a maximum supply of 21 million BTC from the beginning, and once every four years, it reaches a “half-life” in which the amount of rewards obtained by mining is halved. The report analyzed the impact of the bitcoin half-life in May 2020 on the stock-flow ratio, and then calculated a reasonable price of $ 90,000.
The report stressed that even if the price of gold rises, the stock will not increase if the price of Bitcoin rises, so that there will be no significant increase in production that will lead to a pressure to push down prices. He explained that while it took thousands of years for the gold stock flow ratio to rise to the current level, cryptocurrency increased at a much faster rate. It was concluded that in May 2020, it reached a value comparable to the gold ratio, and then became more valuable than gold.
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