When a good has a high stock-to-flow ratio, and increasing the flow (new production) comes at a high price, this good might prove a good store of value. This is the case for example with gold or land.
The stock-to-flow ratio of gold for example is assumed to be around 60, meaning there is about 60 times more gold in circulation than is mined every year.
Stock-to-flow depicts the ratio of the amount of a good that is in circulation to the amount of that good that is additionally produced within a certain timeframe, usually within a year.
In the following notes I will try to explain the stock-to-flow ratio, and how it relates to Bitcoin. Appreciating almost any kind of feedback!