Fixed supply and interest rates that refuse to turn negative were among the top advantages of swapping fiat for BTC, says PlanB.

Bitcoin (BTC) was the top choice of famous analyst PlanB thanks to its scarcity and zero likelihood of negative interest rates.

In a series of tweets on July 7, the creator of Bitcoin’s stock-to-flow price model explained what drove him to buy the cryptocurrency.

 

PlanB: “Most people are asleep” on BTC

PlanB has become well known as an outspoken BTC supporter. His price model has undergone several incarnations, and currently predicts a Bitcoin price of $288,000 by 2024.

So far, stock-to-flow has tracked Bitcoin’s metamorphosis with almost 100% accuracy. Before he created it, however, PlanB was eyeing macro factors and an exit from fiat currency.

He wrote on Twitter:

“Why I bought #bitcoin in 2015-2016 (before the model): 

- 46M millionaires in the world, only 21M BTC 

- can't use gold or $ in space or Mars, need something else 

- nobody can freeze account or block transactions 

- 0% interest rate is better than negative interest rate”

The reasoning will sound familiar to many. Bitcoin’s fixed supply, non-physical nature, decentralized structure, and “hard” money credentials continue to make it an investment choice for both large and small volume investors.

Since 2015, negative interest rates, in particular, have proliferated, with Bitcoin offering a safe haven from central bank taxes and the erosion of the value of cash savings.

Continuing, PlanB said that mainstream consumers were still unaware of Bitcoin’s benefits as money.

“It is funny isn't it? In The Netherlands people have about $400B on their bank savings accounts, earning 0% interest (above $1M interest rate is negative),” he wrote in another post. 

“This $400B could be put in bitcoin and put to work to earn at least 6% interest, $24B/yr. Most people in NL are asleep ..yet”

Chart

Bitcoin stock-to-flow price model as of July 8. Source: Digitalik

 

Bitcoin credentials in a nutshell

As Cointelegraph has often highlighted, Bitcoin rewards low time preference investors by not incentivizing spending or borrowing as quickly as possible. The opposite is true of fiat, issuers of which use negative rates and inflationary policy to penalize long-term savers.

At the same time, miners are incentivized not to alter Bitcoin’s fundamental attributes — fixed supply and fixed emission — as doing so would compromise their own prosperity.

As Saifedean Ammous summarized in his popular book, “The Bitcoin Standard,” this form of “digital scarcity” is unprecedented in history, and allows Bitcoin to fill a niche that no other money has yet managed, including gold.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch

Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch

Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.

More Bitcoin News
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers

Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers

Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins. 

More Bitcoin News
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction

Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction

Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.

More Solana News
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs

SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs

The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.

More Cryptocurrencies News
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP