From Formula to Scarcity: Stock-to-Flow. Bitcoin is scarce. This phrase is often repeated but rarely explained. In economics, scarcity is not an opinion; it is a numerical ratio. Every material or digital asset has two fundamental quantities: Stock: The quantity already in existence. Flow is the quantity added each year. The ratio of the two, stock-to-flow, defines the monetary hardness of an asset. The higher the ratio, the more resistant the asset is to inflation; that is, it is difficult to expand its total quantity. In the case of Bitcoin, monetary inflation is defined as "flow over stock." Therefore, the stock-to-flow ratio is the inverse of inflation. It's a simple yet powerful relationship: What is fragility (inflation) for currencies becomes robustness (scarcity) for Bitcoin. Each halving event cuts the "flow," or the annual creation of new bitcoins, in half. The "stock," on the other hand, continues to increase until it reaches the limit of 21 million. The result is a stock-to-flow ratio that grows in a deterministic manner over time. Between 2012 and 2016, Bitcoin inflation was 12.5%, and the stock-to-flow ratio was 8. Today, inflation is 0.83%, and the stock-to-flow ratio is 120. With the next halving in 2028, inflation will fall to 0.4%, and the stock-to-flow ratio will be 250. This relationship between inflation and Bitcoin's stock-to-flow ratio will persist until 2140, when inflation will reach zero and the stock-to-flow ratio will become virtually infinite. Currently, Bitcoin surpasses gold in monetary hardness; gold has a stock-to-flow ratio of around 60–70, whereas Bitcoin is already over 120. At the current rate, it would take 120 years to double the stock of Bitcoin. Scarcity is not a privilege; it is a form of equality. In a system where issuance is equal for all, no one can "inflate" the time or labor of others. Stock-to-flow does not measure price; rather, it measures the fairness of economic time. The higher the stock-to-flow ratio, the more wealth retains its value over time. Every bitcoin is created with the same amount of energy and follows the same rules. This distinguishes it from any currency created by decree. In 2019, an analyst known as PlanB popularized a model correlating Bitcoin's stock-to-flow ratio with its market value. The model is now criticized and, in part, outdated. It does not predict price; rather, it describes the consistency of the scarcity mechanism. Bitcoin is valuable not because it costs money, but because it retains its value over time. Each block added is a unit of order against the entropy of the global economic system. Stock-to-flow is not just a technical indicator. It is a numerical measure of programmed trust. The more it grows, the harder the network is to manipulate. In Bitcoin, scarcity is not a flaw in the code but rather its most human function. Once the quantity can no longer grow, the responsibility to use it well increases. #stocktoflow #scarcity #stock #flow #inflation #halving #gold #planb #technical #quantity #responsability

The formula for ordering: 21 million. No one can create more bitcoins than the protocol allows. This sums up a deeper principle: the mathematical order of supply. Bitcoin's supply does not arise from an act of will, but rather from a predetermined issuance function in the source code. 21 million. No one can ever exceed that number. Every 210,000 blocks, the reward for miners is halved. This is a mechanism of programmed disinflation, not an isolated technical event. This halving sets the economic tempo of the network, slowing as Bitcoin matures like a heartbeat. Each block adds order, not chaos. Each halving reduces the supply, thereby increasing scarcity and strengthening the link between time, energy, and value. In contrast, scarcity in fiat currencies is only apparent because central banks can expand the monetary base at any time, thereby altering the relationship between savings, debt, and purchasing power. In Bitcoin, however, scarcity is intrinsic and verifiable; no committee, authority, or emergency can change it. For the first time in history, a mathematical formula has replaced a political promise. Behind every Bitcoin, energy has been expended—measurable and irreversible. The algorithm does not distribute wealth; rather, it recognizes verified energy expenditure. This is why Bitcoin can be understood as a social good—a distributed accounting system that restores dignity to human and technical effort. Scarcity does not enrich the few; it stabilizes the value of everyone's time. The 21 million formula is more than just a quantitative limit. It is a principle of order in an uncertain economic world. Every individual can verify this rule, and therefore trust not someone, but something knowable. In this sense, Bitcoin is not "against" the system; it attempts to bring the system back within the bounds of logic. There are no press conferences, revisions, or corrective measures—only blocks that will follow one another mathematically for over a century. Twenty-one million is not just a number; it's a universal order — the digital translation of the concept of natural scarcity. Where discretion ends, trust begins. #21 #million #protocol #program #network #block #halving #sistem