Benzinga - Peter Dunworth, a veteran investor with over 30 years of experience, predicted the future valuation of Bitcoin (CRYPTO: BTC).
Bitcoin To $7 Billion Per Coin
In an exclusive interview with What Bitcoin Did podcast, Dunworth, who runs a multi-family office catering to high-net-worth families, shed light on the significance of Bitcoin in Australia and expressed his concerns regarding banks’ unwillingness to embrace the cryptocurrency despite its immense potential as the most undervalued collateral in the world.Dunworth’s analysis of Bitcoin’s valuation is based on a simple framework. He pointed out that there is a staggering $6.3 trillion worth of global trade occurring daily.
"If you divide $6.3 trillion by the 900 BTC that are minted on the day you get to $7 billion a coin," he said.
According to the current inflation rate of Bitcoin, it is technically possible to mine up to 900 Bitcoins per day. This rate is influenced by a process called halving, which occurs every four years and cuts the inflation rate in half. However, it is important to note that this figure represents the total amount of Bitcoin entering circulation within 24 hours and is not accessible to individual miners.
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Reality Check
However, if each Bitcoin’s value reaches $7 billion, we can calculate the potential market capitalization by multiplying this value by the total supply of Bitcoin. With a maximum supply of 21 million BTC, the market capitalization would be $147 trillion.Price Action: At the time of writing, BTC was trading at $27,142, up 4.56% in the last 24 hours, according to Benzinga Pro.
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