Valuing Bitcoin with Peter Dunworth - WBD707
Mr Obnoxious
Peter McCormack
4.8 • 2.7K Ratings
🗓️ 8 September 2023
⏱️ 100 minutes
🧾️ Download transcript
Summary
Peter Dunworth runs a multi-family office for high-net-worth families. In this interview, we discuss Bitcoin in Australia, and the reluctance of banks to embrace it despite it being the world’s most undervalued collateral. We also talk about the negative impact of state expenditure and taxation on inflation and the economy, and how markets are going to form around Bitcoin.
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Australia should be a natural home for Bitcoin. Back in 2013, the governor of the Reserve Bank of Australia (Australia’s central bank) stated “There would be nothing to stop people in this country deciding to transact in some other currency in a shop if they wanted to. There’s no law against that, so we do have competing currencies.” This sentiment provides content for the mild approach the Australian government has historically employed to Bitcoin regulation.
As Bitcoin and digital assets mature there are demands for legislation from some prominent Australian politicians. However, as in the US, regulators are struggling to determine how to deal with Bitcoin in comparison to other digital assets. The Australian Securities and Investments Commission, the Australian version of the SEC, does not currently deem Bitcoin to be a financial product.
This lack of regulatory clarity is why Bitcoin is yet to be fully embraced by mainstream banking in Australia. Whilst Bitcoin transactions are allowed, there are increasingly onerous banking limitations on transacting with exchanges. Essentially, banks don’t want money leaking out of their control as this reduces their ability to increase the flow of money through fractional reserve banking.
It is Peter Dunworth’s opinion though that we could be at a tipping point. Bitcoin, according to Peter, is the world’s most undervalued collateral. Banks will eventually lean into this as they will be able to add it to their balance sheets and solve their current capital adequacy problems. They will then be able to leverage it as any other balance sheet asset for loans. This is why Peter believes that, in terms of the future, Bitcoin is chronically undervalued.
Show notes: https://www.whatbitcoindid.com/podcast/valuing-bitcoin
This episode’s sponsors:
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Transcript
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| 0:00.0 | The first valuation framework is simple in that there's 6.3 trillion dollars worth of global |
| 0:05.0 | trade that happens on a daily basis and if you divide 6.3 trillion by the 900 Bitcoin |
| 0:11.1 | that are minted on the day you get to 7 billion dollars a point. |
| 0:15.0 | Hello there from Australia. I'm here in Sydney. Wow, what an amazing city, amazing |
| 0:21.0 | people, incredible food. very, very chill place. |
| 0:24.1 | Everyone's so nice, I'm loving it here. |
| 0:26.5 | So tomorrow is our, well, it depends on where you are, |
| 0:29.5 | depends on when you're going to listen to this, |
| 0:30.6 | but tomorrow is going to be our live event in Sydney I cannot |
| 0:33.8 | weigh so many people are coming I met a bunch of people tonight we went out for a |
| 0:37.1 | drink which was very cool so yeah looking forward to that anyway welcome to the |
| 0:41.0 | what Bitcoin did podcast which is brought to you by the legends at Iris Energy, |
| 0:45.2 | the largest NASDAQ listed Bitcoin miner using 100% renewable energy. |
| 0:49.5 | I'm your host, Peter Moore Kormack, and today I've got Peter Dunworth on the show now Peter is |
| 0:54.4 | probably the most bullish man in Bitcoin. He thinks that Bitcoin will |
| 0:59.3 | eventually be 20 billion dollars a coin he thinks right now it should be valued at seven billion dollars a coin. He thinks right now it should be valued at 7 billion dollars a coin. |
| 1:05.1 | Pretty insane stuff right? I did try and sell him one of my Bitcoin for 5 billion but he wasn't |
| 1:09.4 | interested so that was rather disappointing but I do want to say a big thanks to Peter. He is the brother of my good buddy Michael Dunworth, who's also going to be on the show very soon. And thank him for an amazing dinner. He took us out with a whole bunch of people to talk about |
| 1:22.9 | Bitcoin all evening but this was a great show we go into a whole bunch of stuff and |
| 1:26.8 | it's really great to hear how an asset manager thinks about Bitcoin |
| 1:29.6 | and how the people he deals with think about Bitcoin. |
| 1:32.6 | So listen, I hope you enjoy this. |
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