Excessive credit creation has distorted asset prices through flow effects. Most Bitcoin valuation models solely account for network fundamentals.

Incorporating flow effects in Bitcoin valuation yields significantly higher predictive power. Current prices are significantly below Metcalfe’s Law-based valuations.

A $21k year end price target remains very possible. “There is something at work in my soul, which I do not understand.”- Frankenstein Sometimes you see things in the news that make you go ‘hmmm’.

This Bloomberg feature on the Fed’s “bitcoin advice” was one of them: “Federal Reserve Bank of Atlanta President Raphael Bostic has a short message about cryptocurrencies like bitcoin: Avoid! “Don’t do it,’’ Bostic told an audience in Atlanta Tuesday at the Hope Global Forums annual meeting, which promotes financial inclusion, young entrepreneurs and affordable housing.

“They are speculative markets. They are not currency. Read more from seekingalpha.com…

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