Former Coinbase CTO Makes $2M Bet On Bitcoin• March 20, 2023 11:11 am • Comments
Former Coinbase CTO, Balaji Srinivasan, just made a very bullish bet on the future performance of Bitcoin during the current banking crisis.
Srinivasan is making the claim that hyperinflation may be coming much sooner than expected and will allow for Bitcoin to reach $1 million in the next 3 months.
Of course, the risk of hyperinflation is still small, but the fact that more and more industry experts are now making such extreme cases may be a sign that things are changing very rapidly these days.
In order to show his confidence in his prediction, the former CTO even accepted a $ 1 million bet that the price of BTC would reach $1 million by June 17.
The bet was made against Twitter user James Medlock who claimed that the US would not experience hyperinflation.
Former Coinbase CTO Makes Massive Bet That Bitcoin Will Rampage Past $1 Million Within 90 Days ⋆ ZyCrypto https://t.co/jiA2Dd5RWb
— Jordan Utt (@jordanutt1) March 20, 2023
Per the thread, other Twitter users helped set up a smart contract with the betting terms. Srinivasan also disclosed that he would move another $1 million in USDC for another wager on the same topic:
“I am moving $2M into USDC for the bet. I will do it with Medlock and one other person, sufficient to prove the point. See my next tweet. Everyone else should just go buy Bitcoin, as it’ll be much cheaper for you than locking one up for 90 days.“
Medlock and Srinivasan made the wager based on their different views of the U.S. economy’s future amid ongoing uncertainty regarding its banking system.
Srinivasan argues that there’s an impending crisis that will lead to the deflation of the U.S. dollar and, thus, to a hyperinflation scenario that would take the BTC price to $1 million. Medlock, on the other hand, is bearish about upcoming hyperinflation in the country.
The case for continued inflation does seem very high now due to the recent banking crisis which has forced the Federal Reserve to act.
As a result, the Fed is now stuck in a difficult situation where they may need to inject new liquidity into the system in order to prevent more bank failures.
On the other hand, doing this would go against their goal of reducing elimination and would likely increase inflation again.
The concern is that inflation may one day go past the point of the Fed’s control where it will start to spiral out of control.
Therefore, it is essential that the Fed do everything it can to prevent any further inflation, but bailing out banks consistently may have devastating effects in the long term.
$1M #bitcoin in 90 days 🚀🚀🚀
Former CTO of Coinbase bets big 💰 pic.twitter.com/tM0k5T4bie
— CryptoSavingExpert ® (@CryptoSavingExp) March 19, 2023
Balaji Srinivasan, Coinbase’s former CTO reportedly made a bet with Twitter pundit James Medlock and another unnamed person on Friday that Bitcoin would hit $1 million in 90 days. As part of the agreement, Srinivasan will give $1 million in Circle’s USDC stablecoin to each party if his prediction fails.
The former Coinbase CTO believes that the global economy is going through some interesting changes which he referred to as “hyperbitcoinization.”
According to him, the global economy will soon “redenominates on Bitcoin as digital gold,” as the US Dollar is on the verge of entering a point of hyperinflation. This simply means that the market capitalization of Bitcoin which is around $536 billion as of the time of writing would increase to around $19.3 trillion.
In comparison, Siblis Research published that the value of US stocks was $40.5 trillion as of the end of 2022. The prediction is also said to be inspired by the recent failure of US banks causing fear and uncertainty in the financial market. While some crypto investors appear to be moved by this prediction, some analysts have heavily criticized Srinivasan, calling the forecast outrageous.
A $2M bet has been placed on Bitcoin's future performance by former @coinbase CTO @balajis, who predicts it will reach $1M by June 17th . 👀
Get a breakdown of the action here…👇 #BSCNews #CryptoNews #Cryptocurrency #Bitcoin $BTChttps://t.co/lA5V1YSnkU
— BSC News (@BSCNews) March 20, 2023
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