galoy-earn
  • Earn Overview
  • Chapter 101 - Bitcoin: What is it?
    • 101.1 Lesson - whatIsBitcoin
    • 101.2 Lesson - sat
    • 101.3 Lesson - whereBitcoinExist
    • 101.4 Lesson - whoControlsBitcoin
    • 101.5 Lesson - copyBitcoin
  • Chapter 102 - What is Money?
    • 102.1 Lesson - moneySocialAgreement
    • 102.2 Lesson - coincidenceOfWants
    • 102.3 Lesson - moneyEvolution
    • 102.4 Lesson - whyStonesShellGold
    • 102.5 Lesson - moneyIsImportant
    • 102.6 Lesson - moneyImportantGovernement
  • Chapter 103 - How Does Money Work?
    • 103.1 Lesson - WhatIsFiat
    • 103.2 Lesson - whyCareAboutFiatMoney
    • 103.3 Lesson - GovernementCanPrintMoney
    • 103.4 Lesson - FiatLosesValueOverTime
    • 103.5 Lesson - OtherIssues
  • Chapter 104 - Bitcoin: Why is it special?
    • 104.1 Lesson - LimitedSupply
    • 104.2 Lesson - Decentralized
    • 104.3 Lesson - NoCounterfeitMoney
    • 104.4 Lesson - HighlyDivisible
    • 104.5 Lesson - securePartOne
    • 104.6 Lesson - securePartTwo
  • Chapter 201 - The Origins of Money
    • 201.1 Lesson - originsOfMoney
    • 201.2 Lesson - primitiveMoney
    • 201.3 Lesson - anticipatingDemand
    • 201.4 Lesson - nashEquilibrium
    • 201.5 Lesson - singleStoreOfValue
  • Chapter 202 - Attributes of a good Store of Value
    • 202.1 Lesson - whatIsGoodSOV
    • 202.2 Lesson - durability
    • 202.3 Lesson - portability
    • 202.4 Lesson - fungibility
    • 202.5 Lesson - verifiability
    • 202.6 Lesson - divisibility
    • 202.7 Lesson - scarce
    • 202.8 Lesson - establishedHistory
    • 202.9 Lesson - censorshipResistance
  • Chapter 203 - The Evolution of Money I
    • 203.1 Lesson - evolutionMoney
    • 203.2 Lesson - collectible
    • 203.3 Lesson - storeOfValue
    • 203.4 Lesson - mediumOfExchange
    • 203.5 Lesson - unitOfAccount
    • 203.6 Lesson - partlyMonetized
    • 203.7 Lesson - monetizationStage
  • Chapter 204 - The Evolution of Money II
    • 204.1 Lesson - notFromGovernment
    • 204.2 Lesson - primaryFunction
    • 204.3 Lesson - monetaryMetals
    • 204.4 Lesson - stockToFlow
    • 204.5 Lesson - hardMoney
  • Chapter 205 - The Evolution of Money III
    • 205.1 Lesson - convergingOnGold
    • 205.2 Lesson - originsOfPaperMoney
    • 205.3 Lesson - fractionalReserve
    • 205.4 Lesson - bankRun
    • 205.5 Lesson - modernCentralBanking
    • 205.6 Lesson - goldBacked
    • 205.7 Lesson - brettonWoods
    • 205.8 Lesson - globalReserve
  • Chapter 206 - The Evolution of Money IV
    • 206.1 Lesson - nixonShock
    • 206.2 Lesson - fiatEra
    • 206.3 Lesson - digitalFiat
    • 206.4 Lesson - plasticCredit
    • 206.5 Lesson - doubleSpendProblem
    • 206.6 Lesson - satoshisBreakthrough
    • 206.7 Lesson - nativelyDigital
    • 206.8 Lesson - CBDCs
  • Chapter 301 - Bitcoin: Why was it created?
    • 301.1 Lesson - rootProblem
    • 301.2 Lesson - bitcoinCreator
    • 301.3 Lesson - fiatRequiresTrust
    • 301.4 Lesson - moneyPrinting
    • 301.5 Lesson - genesisBlock
    • 301.6 Lesson - cypherpunks
  • Chapter 302 - Bitcoin: How does it work?
    • 302.1 Lesson - peer2Peer
    • 302.2 Lesson - blockchain
    • 302.3 Lesson - privateKey
    • 302.4 Lesson - publicKey
    • 302.5 Lesson - mining
    • 302.6 Lesson - proofOfWork
    • 302.7 Lesson - difficultyAdjustment
    • 302.8 Lesson - halving
  • Chapter 401 - Lightning: What does it solve?
    • 401.1 Lesson - bitcoinDrawbacks
    • 401.2 Lesson - blocksizeWars
    • 401.3 Lesson - lightningNetwork
    • 401.4 Lesson - instantPayments
    • 401.5 Lesson - micropayments
    • 401.6 Lesson - scalability
    • 401.7 Lesson - paymentChannels
    • 401.8 Lesson - routing
  • Chapter 501 - Bitcoin Criticisms & Fallacies I
    • 501.1 Lesson - itsaBubble
    • 501.2 Lesson - itstooVolatile
    • 501.3 Lesson - itsnotBacked
    • 501.4 Lesson - willbecomeObsolete
    • 501.5 Lesson - toomuchEnergy
    • 501.6 Lesson - strandedEnergy
  • Chapter 502 - Bitcoin Criticisms & Fallacies II
    • 502.1 Lesson - internetDependent
    • 502.2 Lesson - forcrimeOnly
    • 502.3 Lesson - ponziScheme
    • 502.4 Lesson - bitcoinisTooSlow
    • 502.5 Lesson - supplyLimit
    • 502.6 Lesson - governmentBan
  • Chapter 503 - Bitcoin Criticisms & Fallacies III
    • 503.1 Lesson - concentratedOwnership
    • 503.2 Lesson - centralizedMining
    • 503.3 Lesson - tooExpensive
    • 503.4 Lesson - prohibitivelyHigh
    • 503.5 Lesson - willBeHoarded
    • 503.6 Lesson - canBeDuplicated
  • Chapter 601 - Bitcoin and Economics I
    • 601.1 Lesson - scarcity
    • 601.2 Lesson - monetaryPremium
    • 601.3 Lesson - greshamsLaw
    • 601.4 Lesson - thiersLaw
    • 601.5 Lesson - cantillonEffect
    • 601.6 Lesson - schellingPoint
  • Chapter 602 - Bitcoin and Economics II
    • 602.1 Lesson - opportunityCost
    • 602.2 Lesson - timePreference
    • 602.3 Lesson - impossibleTrinity
    • 602.4 Lesson - jevonsParadox
    • 602.5 Lesson - powerLaws
    • 602.6 Lesson - winnerTakeAll
  • Chapter 603 - Bitcoin and Economics III
    • 603.1 Lesson - unitBias
    • 603.2 Lesson - veblenGood
    • 603.3 Lesson - malinvestment
    • 603.4 Lesson - asymmetricPayoff
    • 603.5 Lesson - ansoffMatrix
  • README
  • LICENSE
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  1. Chapter 204 - The Evolution of Money II

204.4 Lesson - stockToFlow

Screen: stockToFlow

Headline: Understanding the Stock to Flow Ratio

Reward: 3

Text: The Stock to Flow ratio is a measure of the rate at which new units of money are added to the existing supply.

To calculate it, you divide the existing amount of money by the amount produced each year.

For something to be a good way to save value, it should become more valuable when people want to use it to save, but the people who make it should not be able to add too much of it, which would make it less valuable.

=================================================================

QUIZ

Question: What is the Stock to Flow ratio?

Answer: A measure of the rate at which new units of a monetary good are introduced into the existing supply.

Feedback: That's right! The Stock to Flow ratio can be a useful tool for understanding the stability and scarcity of a particular currency or commodity. Good job

Correct: true

Answer: A measure of a company's financial stability.

Feedback: Sorry, looks like you're mixing up your business jargon. Better luck with your next answer

Correct: false

Answer: A ratio used to compare the value of different currencies.

Feedback: Wrong! But hey, at least you're thinking about the global economy. Better luck with your next guess.

Correct: false

Previous204.3 Lesson - monetaryMetalsNext204.5 Lesson - hardMoney

Last updated 1 year ago