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🧵/1-Due to the innovative approach towards #BTC price valuation based on #Scarcity, the #S2F model by @100trillionUSD has attracted a lot of attention in the community since 2019. After the recent market's 50% drop, the S2F_price deflection from Market_price caused a huge debate 
🧵/2- I have two theories for this descending behaviour in the #S2F deflection graph.
A- The #S2F model is only a function of Scarcity. However, Scarcity can be exaggerated/neutralized by other factors such as wealth distribution's equality in the network; Gini Coeff
A- The #S2F model is only a function of Scarcity. However, Scarcity can be exaggerated/neutralized by other factors such as wealth distribution's equality in the network; Gini Coeff
🧵/3- Therefore, if we redefine the S2F model to include the Gini Index, we can improve the price prediction performance (lower deflection). Gini Coeff calculation requires T3 data offered by @glassnode (I don't have them)
news.earn.com/quantifying-de…
news.earn.com/quantifying-de…
