# Stock to Flow Ratio

## Indicator Overview

The Stock to Flow (S/F) Ratio is a popular model that assumes that scarcity drives value. It is defined as the ratio of the current stock of a commodity and the flow of new production, and is applied across many asset classes.

Bitcoin's price has historically followed the S/F Ratio, making it a popular model for predicting future Bitcoin valuations.

<figure><img src="https://2190898932-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-Ldi5WtVBeQ2iFbdqJ1a%2Fuploads%2Fgit-blob-d358c84ecd03314ded081fd9f8c47acef20c4946%2F1.png?alt=media" alt="Bitcoin: Stock to Flow Ratio"><figcaption></figcaption></figure>

* [View Stock to Flow Ratio in Glassnode Studio](https://studio.glassnode.com/metrics?a=BTC\&m=indicators.StockToFlowRatio)
* [View Stock to Flow Ratio in Glassnode API Docs](https://docs.glassnode.com/basic-api/endpoints/indicators#stock-to-flow-ratio)

## How is it measured?

Stock to Flow is defined as the ratio of the current stock of a commodity (i.e. circulating Bitcoin supply) and the flow of new production (i.e. newly mined bitcoins).

## About

### Introduced By

[PlanB](https://twitter.com/100trillionUSD)

### Date Introduced

January 2019

## Further Resources

PlanB - [Modeling Bitcoin's Value with Scarcity](https://medium.com/@100trillionUSD/modeling-bitcoins-value-with-scarcity-91fa0fc03e25)