The Peter McCormack Show

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Hyperbitcoinisation Can't Happen with Mike Brock - WBD717 Oct 03, 2023

Show notes

Mike Brock is the lead at TBD, the Bitcoin-focused subsidiary of Block. In this interview, we discuss Bitcoin's limitations in solving complex societal problems, counter-arguments to the narrative that monetary flexibility leads to falling living standards and wasteful investments, the complexities and risks of Bitcoin's widespread adoption, and why, despite certain limitations, Bitcoin still has the potential to be the most important monetary asset in human history.

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The Bitcoin community has had to harden itself against attacks from outside, by those either too ignorant or too invested in the incumbent system to allow themselves to understand the brilliance of the innovation. However, not all of those who raise issues counter to mainstream Bitcoin opinion are either attacking the innovation or the community. Some opinions are manifestly good faith attempts to sharpen the arguments needed to help wider Bitcoin adoption.

Mike Brock is someone who sits in this camp: he is an unapologetic advocate for Bitcoin but doesn't necessarily agree with what could be framed as Bitcoin orthodoxy. In this podcast, we discuss in more detail the concerns around groupthink on certain issues, which is in turn leading to a branding issue that seems to be affecting wider adoption.

Specifically, is there a misconception in the Bitcoin community that Bitcoin has already won and will replace the US dollar? Has loose monetary policy since 1971 actually resulted in reduced living standards and significantly poor corporate investment behaviour? Are inflationary metrics providing a real understanding of consumer experiences? And, will a strict monetary policy have a net positive or negative influence on economies and societies?

Consideration of the arguments for and against deflationary or inflationary currencies enables Bitcoin's true potential to be honed. However, even if Bitcoin has a long way to go before challenging the dominance of the US dollar, it has the potential to immediately help lift millions of people out of poverty by providing open, effective and cheap financial infrastructure. This means Bitcoin has a compelling narrative even within mainstream economic and political assumptions.

Show notes: https://www.whatbitcoindid.com/podcast/hyperbitcoinisation-cant-happen

This episode's sponsors: Iris Energy - Bitcoin Mining. Done Sustainably Bitcasino - The Future of Gaming is here Ledger - State of the art Bitcoin hardware wallet Wasabi Wallet - Privacy by default Unchained - Secure your bitcoin with confidence OrangePillApp - Stack Friends Who Stack Sats

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The Free Market for Money with Peter St Onge - WBD716 Sep 29, 2023

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Peter St Onge is an Economist at the Heritage Foundation and a Fellow at the Mises Institute. In this interview, we discuss the burden of excessive government control, corruption & the erosion of trust in institutions, the influence of activists on government decisions, & reducing the size of government. Using examples from Argentina & Lebanon, we talk about the resilience of normal people in the face of a collapsing state, & the challenges of scaling anarchic systems.

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What Bitcoin Did makes films, which are published on YouTube under the banner "Follow the Money". Through the experiences of everyday people, and through the lens of new kinds of currency like Bitcoin, these films explore what money is, who controls it — and how new forms of it could help create a better, more equitable future for us all. So far, 3 films have been released, covering Bitcoin's legalisation in El Salvador, inflation in the UK and Bitcoin mining in Texas.

There are currently 2 further films in post-production: a film about the impact of triple-digit inflation on Argentinians, and a film about the impact of the economic crisis on the Lebanese. These films have had a profound effect on me, providing me with a unique perspective on the role of government.

Making these films has spotlighted obvious negative issues emanating from bloated & corrupt states being allowed to thrive. But there are also unexpected positive experiences showing normal people's capacity to show agency & develop innovative methods of self-reliance in the face of a collapsing state. I was eager to share my experiences with Peter St Onge, who I knew could understand and contextualise my observations and insights.

We delved into our philosophical beliefs on the size of government and the potential of Bitcoin. Initially, I dismissed libertarian ideas, but my experiences in these countries have challenged this thinking. We discussed the difficulties and potential risks of eliminating the state, acknowledging the natural tendency for people to organise and create rules. We also touched on the role of democracy and the potential problems that arise when the political unit becomes too large.

In both countries, I observed the effects of severe economic strain on different social classes. The poor are obviously massively disadvantaged in these situations, and I was witness to many heartbreaking stories. However, the incredibly inspiring stories of resilience and organisation in the face of adversity reinforced my belief in the potential of people when they are not burdened by excessive government control.

Show notes: https://www.whatbitcoindid.com/podcast/the-free-market-for-money

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The Bitcoin Debate with Jeff Booth & George Gammon - WBD715 Sep 27, 2023

Show notes

Jeff Booth is the Author of The Price of Tomorrow & CEO/Chairman of Ego Death Capital. George Gammon is an investor, macroeconomics expert & host of The Rebel Capitalist Show. We discuss Bitcoin's role in the world: its role as a hedge against the tradfi system, its disruptive potential & ability to reprice everything, & the challenges & consequences of a Bitcoin-dominated world.

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Jeff Booth, an entrepreneur, technologist, & author of the book 'The Price of Tomorrow', is a visionary in the Bitcoin field & a regular guest on this show. But, it's been nearly 3 years since I interviewed the amazing George Gammon, renowned for his 'The Rebel Capitalist Show' podcast. This conversation was born out of a Twitter exchange, and it quickly became apparent that they share more common ground than many might have initially assumed.

Many believe that George is anti-Bitcoin, but that's not the case. His stance on Bitcoin is pragmatic. George believes in the importance of owning Bitcoin for purchasing power outside of the traditional system, especially with the rise of central bank digital currencies. And yet, he emphasizes the importance of probabilities and trade-offs in discussions about Bitcoin and he doesn't necessarily see it as a guaranteed path to wealth.

Jeff's views align with George's on many fronts: they both expressed their belief in the potential of Bitcoin. The differences between the 2 guests lie in the perceived probabilities of hyperbitcoinisation. Jeff sees Bitcoin's potential to reprice the existing system if it remains decentralized and secure. In this event, one needs to imagine a world where value is priced in Bitcoin, not where Bitcoin is priced in dollars.

Jeff promotes a future where prices will fall forever against a fixed number of units of currency, a stark contrast to the current system. This will affect the appreciation of Bitcoin in different economic scenarios. While Bitcoin may currently be seen as a high-risk asset with the potential for significant returns, in a world where goods and services experience deflation, Bitcoin's appreciation may be less pronounced.

This show was another inspirational war cry for Bitcoin from two esteemed guests. Jeff couldn't imagine putting his time & money anywhere else due to the high returns he expects. George believes that even if Bitcoin doesn't become a global currency or faces challenges like fractional reserve usage and inflation, there is still massive value in its ability to enable transactions outside of the existing system. It highlights that everyone should consider the potential benefits of Bitcoin.

Show notes: https://www.whatbitcoindid.com/podcast/the-bitcoin-debate

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Making Bitcoin Carbon Negative with Daniel Batten - WBD714 Sep 25, 2023

Show notes

Daniel Batten is an author, analyst, environmental campaigner and investor in ClimateTech. In this interview, we discuss the challenges of convincing people about climate change, the importance of trust in government, and the potential positive impact of Bitcoin mining on the environment. We also talk about Daniel's focus on accelerating Bitcoin mining's use in reducing global landfill methane emissions.

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Bitcoin mining requires powerful computer hardware and consumes a considerable amount of electricity. In some locations, this energy is primarily sourced from fossil fuels. Critics claim that this leads to excessive carbon emissions and contributes to climate change. This is obviously a simplistic and false narrative; the true situation may at first seem counterintuitive, but Bitcoin is actually a powerful tool in the fight against climate change.

Bitcoin mining incentivizes the use of renewable energy sources. Miners often seek areas with abundant cheap electricity, which lends itself to seeking out renewable sources of energy. This results in mining subsidising the build-out of renewable energy sources, which in turn facilitates the development of reliable and sustainable energy grids.

But, perhaps the most exciting application of Bitcoin mining is in the use of waste methane. Around 30% of the rise in global temperatures is estimated to be due to methane emissions, and methane has 80 times more warming power than carbon dioxide in the atmosphere. Further, 11% of global methane emissions come from landfill sites. The World Bank estimates that landfill emissions will grow 70% by 2050.

As we heard in our podcast last year with Vespene Energy's Adam Wright, waste methane is an amazing energy source for Bitcoin mining. The waste output is carbon dioxide, which is 80 times less potent than the methane input. Daniel Batten is seeking to accelerate the build-out of such technology. The aim is to generate 32 megawatts of power from landfills, offsetting the equivalent of 4 million tonnes of carbon dioxide. That's 10% of Bitcoin's carbon footprint!

In this podcast, Daniel explains the opportunities and challenges behind scaling up Bitcoin mining's carbon-offsetting potential. The fund he co-founded, CH4 Capital, has a mission to offset 2% of global greenhouse emissions with a $500 million investment. The exciting thing for Bitcoiners is that using methane emissions from landfills is obviously just one of a number of sustainable applications. It's just a matter of time before Greenpeace gets orange-pilled!

Show notes: https://www.whatbitcoindid.com/podcast/making-bitcoin-carbon-negative

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The Breaking of the Global Economy with Nik Bhatia - WBD713 Sep 22, 2023

Show notes

Nik Bhatia is the founder of 'The Bitcoin Layer' & author of 'Layered Money'. This interview delves into Nik's work in the Bitcoin industry and his background in trading interest rates. We discuss the impact of low-interest rates on the economy, the relationship between inflation and interest rates, and the impact of central bank actions on markets. The conversation expands to include global recessions, the Chinese economy, and the future of Bitcoin.

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The unprecedented period of low-interest rates that followed the 2008-09 financial crisis was deemed a golden opportunity for those leveraging debt. However, this environment hid many significant dangers. Chief among them was the encouragement of irrational investments. The problem comes, as we have seen, when this period of low interest ends. A reasonable cost of capital provides a check on such behaviour.

Interest rates are influenced by both the market and central banks, with central banks often lagging behind market movements. When the central bank raises rates, they are adjusting the target rates for various lending markets. There is therefore an interplay between central bank actions and market forces in determining interest rates. In addition, there is feedback as investors anticipate interest rate hikes and adjust their investments accordingly.

As we have seen, central banks have used interest rates to temper inflation. This is a crude tool and can risk tipping economies into recession. Purchasing Managers' Indexes (PMIs) can be used to analyse economic activity at the nation-state level; the PMIs in Europe are all in contractionary territory, indicating a deteriorating economy. The issue is, that in our globalised economy, such problems leak into other economies, such as China.

The underlying issue in such a situation is the significant risks associated with the traditional financial instruments of the fiat economy. Financial institutions' liabilities are approaching concerning levels. The problem is that such liabilities are essentially infinite. This is why Bitcoin's value tends to rise when central banks implement easing measures, as many can see the eventual unwinding of the fiat system. The question is how close are we to this unwinding?

Show notes: https://www.whatbitcoindid.com/podcast/the-breaking-of-the-global-economy

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All Roads Lead to Bitcoin with Checkmate - WBD712 Sep 20, 2023

Show notes

Checkmate is Glassnode's Lead On-chain Analyst and creator of checkonchain. In this interview, we discuss Bitcoin investing and market analysis, Bitcoin as a hedge against inflation and housing market bubbles, the current economic situation, the potential future role of Bitcoin as a settlement currency for nation-states, and the power and unstoppable nature of Bitcoin.

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Checkmate is one of the best on-chain analysts, leading Glassnode's on-chain research and data analysis, and also creating checkonchain to provide a suite of Bitcoin on-chain charts. This show's discussion therefore focused on the Bitcoin market and trends, including the impacts of Luna and FTX on market sentiment. We also delved into the concept of profit and how it can be measured, and the importance of understanding market indicators and making informed decisions.

Our conversation also took in the macroeconomic situation. We discussed the housing market and the potential risks involved in buying a house. We discussed the high ratio of median house prices to median income in Australia, Canada, and New Zealand, referring to it as a "Ponzi scheme." We also considered the current economic situation: its challenges and the need for individuals to be aware of how the system works.

Specifically, people need to be aware of the impact of inflation and taxes on their finances. Whilst Bitcoin is a hedge for some, others feel the need to speculate and gamble on markets in the fiat system. Argentina is a valuable example in this context, as Argentinians need to manage their money in the face of triple-digit inflation. As people's wealth can rapidly evaporate in such circumstances, it brings into sharp relief the concept of money as a proxy for time.

Towards the end of our conversation, we talked about the power and unstoppable nature of Bitcoin: Bitcoin's design assumes human greed and self-interest, which makes it a powerful and unstoppable organism. Checkmate also provided his opinion on the potential future role of Bitcoin as a settlement currency for nation-states, speculating that nation-states may start testing Bitcoin as a liquid layer on top of their gold reserves, driven by the involvement of oil producers.

Show notes: https://www.whatbitcoindid.com/podcast/all-roads-lead-to-bitcoin

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Macroeconomics & On-Chain Data with Nik Bhatia & Willy Woo - WBD Live in Sydney - WBD711 Sep 18, 2023

Show notes

On September 9th What Bitcoin Did hosted a live show in Sydney. In this second of two podcasts, the guests were the founder of The Bitcoin Layer & Author of Layered Money Nik Bhatia, & and Bitcoin analyst & partner at Crest Willy Woo. Across these interviews, we discussed various topics related to Bitcoin, including its Bitcoin's volatility, its potential as a global currency and the prospects for Bitcoin's global adoption. The show includes the Q&A from the event.

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This is the second of two podcasts sharing interviews from What Bitcoin Did's first Australian live show that was recorded in Sydney. However, this show is with 2 regular guests of the podcast who always bring unique and invaluable insights into Bitcoin's evolution: Nik Bhatia and Willy Woo.

Nik is an adjunct Professor of Finance at the University of Southern California. We talk about how he has introduced Bitcoin into the curriculum following the success of his book "Layered Money". Nik's course covers the technical aspects of Bitcoin, starting with the white paper and delving into topics like blockchain, mining, and cryptography. He also contextualizes Bitcoin within the broader financial world and discusses its valuation and differences from other cryptocurrencies.

Nik also highlights his divergent opinions about Bitcoin. He doesn't think it is a magic bullet: Nik believes it will take mass adoption for it to start fixing things in the economic system. And yet, Nik is passionate about Bitcoin's incredible potential, particularly in non-US and non-western countries. The discovery of Bitcoin as a tool for financial empowerment in these regions is arguably the most exciting thing about Satoshi's innovation.

Willy has long provided great analysis of Bitcoin's price performance. In this show, he discusses the volatility of Bitcoin returns. Willy explains that Bitcoin has historically had high volatility but is now converging with other macro assets in terms of trading range. He attributes this to the financialization of Bitcoin, with the introduction of futures and other paper markets. However, he expresses concern about the control these paper markets have over the price of Bitcoin.

The conversation with Willy then shifts to Bitcoin's potential as a global currency. While lower volatility may be desirable for stability, it may not be ideal for Bitcoin's growth and adoption as a global currency. We discuss the current state of the fiat system and the potential collapse of traditional currencies, which could further drive the adoption of Bitcoin. Then, the floor was open to a Q&A with all five of my live show guests, which made clear there's always plenty to discuss!

Show notes: https://www.whatbitcoindid.com/podcast/macroeconomics-on-chain-data-with-nik-bhatia-willy-woo-wbd-live-in-sydney

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WBD Live in Sydney Pt 1 with Checkmate, Daniel Roberts & Rusty Russell - WBD710 Sep 16, 2023

Show notes

On September 9th What Bitcoin Did hosted a live show in Sydney. In this first of two podcasts, the guests were the Co-Founder & Co-CEO of Iris Energy Daniel Roberts, Glassnode's Lead On-chain Analyst Checkmate, & the Open Software & Lightning Network developer Rusty Russell. Across these interviews, we discussed various topics related to Bitcoin, including its meaning, its impact on people's thinking, and its potential to reshape the financial system.

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What Bitcoin Did's live events are a growing part of our work. We've been incredibly fortunate to host shows across the US and in the UK. Now, we've had the huge honour of hosting a show in Sydney Australia. It is important to extend our reach into new geographies, as the number of talented people working in Bitcoin obviously extends to all corners of the world. But importantly, each geography has invaluable perspectives.

This show, as with all the live shows, covered a huge amount of ground. The conversation commenced with Checkmate providing his views on the meaning of Bitcoin. He described money as time and saw Bitcoin as a source of hope and an opportunity to think differently. Further, Checkmate believes that Bitcoin can reshape our understanding of money and its role in society.

Rusty Russell, a civil engineer turned Bitcoin advocate, shared his journey from scepticism about finance to working in the field. He explained that as an engineer, he views the world from a problem-solving perspective, which differs from the traditional economic viewpoint. He believes that Bitcoin defies logic for traditional economists because it is too simple and elegant for them to understand.

Daniel Roberts and I talked about Iris Energy, a Bitcoin mining company that supports What Bitcoin Did. Daniel explained Bitcoin mining's opportunity in the context of the energy market, and how Bitcoin mining acts as a demand-side battery allowing miners to adjust their energy consumption based on market pricing. We addressed the misconception that Bitcoin miners are exploiting the energy grid, emphasising that they are part of a functioning market and contribute to grid stability.

The show also covered many other important topics, including the value of data to trading Bitcoin, patterns of behaviour in the Bitcoin market, the Potential of next-generation computing and AI for Bitcoin mining, the different stages of Bitcoin's development, and the potential risks and uncertainties associated with stablecoins. Watch out for the second show which has the discussion with the equally awesome pairing of Nik Bhatia and Willy Woo.

Show notes: https://www.whatbitcoindid.com/podcast/wbd-live-in-sydney-pt-1

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Orange Pilling Through Sport with Steven Nelkovski & Patrick O'Sullivan - WBD709 Sep 14, 2023

Show notes

Steven Nelkovski is the CEO of Perth Heat and Patrick O'Sullivan is the Chief Bitcoin Officer. In this interview, we discuss sports teams adopting a Bitcoin standard, why it's important to meet people where they are at and how Bitcoin changes the economics of sport.

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Perth Heat is a professional baseball team based in Perth, Western Australia. It is a foundation member of the Australian Baseball League, and is the most successful team in ABL history, having won 15 Claxton Shields championships.

In November 2021, the Perth Heat became the first team in world sport to operate on a Bitcoin Standard. They pay their players and staff in Bitcoin, accept Bitcoin payments for sponsorships, merchandise, and ballpark concessions and of course holds Bitcoin on its balance sheet.

Bitcoin will disrupt every industry, and sports is no different. Being early not only puts your team on the map to the global bitcoin audience, but the economic incentives are clear, teams like Perth Heat and Real Bedford have first mover advantages and are front-running the bigger clubs that will inevitably adopt Bitcoin.

Show notes: https://www.whatbitcoindid.com/podcast/orange-pilling-through-sport

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Solving the Unsolvable Problems with Michael Dunworth - WBD708 Sep 12, 2023

Show notes

Michael Dunworth is the co-founder of Wyre Payments. In this interview, we discuss Bitcoin, private keys and the role of technology in advancing human understanding. We also talk about the significance of security, identity, and the evolving nature of society in the digital age, when the challenges of distinguishing real from fake is becoming increasingly difficult.

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The internet has been transformative. But, could its benefits soon be outweighed by its disbenefits? Whilst it has enabled people to connect across the world in real-time, ironically, digital technology has had a significant negative impact on human connection and community. People are increasingly finding meaningful connections with disparate online communities at the expense of developing connections with people in their immediate surroundings.

Then there are the technical challenges. Technology has made it easier for impersonation and deepfake scams such that distinguishing real content from fake content has become increasingly difficult. There are plenty of examples of fake conversations involving well-known figures like Steve Jobs and Mark Zuckerberg, which can deceive people into believing false information. The nature of identity in the digital age is therefore evolving quickly.

There is a need for identity verification. Potential solutions are being developed. A worrying number of these involve centralised control of the verification process. There are obviously huge second-order risks of this approach. Could public key cryptography be part of the solution to verify the authenticity of digital content without harming privacy? Could Bitcoin secure more than just monetary value?

But, how do we combat the atomisation of society caused by the internet? Will people regain a valuation in the importance of local communities, human connection and hard work, or, will technology continue to inflict damage on individuals, communities and the nation-state? Technology advances human understanding. But, it's also swallowing humanity.

Show notes: https://www.whatbitcoindid.com/podcast/solving-the-unsolvable-problems

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