Stock-to-Flow (S2F)
Stock-to-flow (S2F) is a measure of the new supply of an asset that is being created over time, relative to the existing supply.
Stock-to-flow (S2F) is a measure of the new supply of an asset that is being created over time, relative to the existing supply. This ratio can be expressed in several ways, including the percentage of the supply being added annually, or the number of years the supply would take to double at the current rate of production. Stock-to-flow is a commonly cited metric in Bitcoin markets.
Bitcoin’s stock-to-flow will continue decreasing indefinitely as the supply increases, and the Bitcoin halving lowers the rate of production in a stepwise fashion every four years. Currently, Bitcoin has a similar stock-to-flow ratio to gold.
However, Bitcoin’s ratio will decline continuously in the coming years, whereas gold’s will not. Bitcoin’s stock-to-flow ratio is also much more predictable and precisely auditable at any point in time.
Stock-to-Flow (S2F) is a fundamental financial concept used in investment analysis, portfolio management, and asset valuation. Onramp's glossary covers Stock-to-Flow (S2F) as part of a comprehensive educational library that helps Bitcoin investors make informed financial decisions.
Frequently Asked Questions
What is Stock-to-Flow (S2F)?
Stock-to-Flow (S2F) is a core financial principle used by investors and analysts to evaluate investments, manage risk, and make informed portfolio decisions across all asset classes including Bitcoin.
How does Stock-to-Flow (S2F) apply to Bitcoin investing?
Stock-to-Flow (S2F) applies to Bitcoin just as it does to traditional investments. As Bitcoin matures as an asset class, institutional tools and frameworks involving Stock-to-Flow (S2F) are increasingly applied to Bitcoin portfolios.
Does Onramp help with Bitcoin investment strategies?
Onramp offers Bitcoin IRA accounts, custody solutions, and educational resources that help investors apply financial concepts like Stock-to-Flow (S2F) to their Bitcoin allocation strategy.
