Bitcoin Price to Hit $1M in 90 Days? Ex-Coinbase CTO Bets Amid Hyperinflation Fears
Balaji Srinivasan, former Coinbase CTO, bets $1 million that Bitcoin price will reach $1 million within 90 days due to hyperinflation in the United States.
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The former Coinbase CTO bets on Bitcoin amid U.S. hyperinflation fears.
Balaji Srinivasan, a tech founder and former Coinbase chief technology officer, has made a daring $1 million bet that the price of Bitcoin will reach $1 million within 90 days due to the United States entering hyperinflation.
The $1 Million Bet: Bitcoin’s Path to $1 Million
Srinivasan accepted a wager from pseudonymous market commentator James Medlock who bet $1 million that the U.S. would not enter hyperinflation. The bet stipulates 40:1 odds, with one Bitcoin (BTC) against $1 million, and a 90-day term.
The former CTO of Coinbase is confident that the US will face hyperinflation, leading to a 3,600% Bitcoin price increase by June 16. He recommends buying Bitcoin and getting coins off exchanges to protect against financial risks.
Hyperinflation is an extreme economic situation where prices rise rapidly and uncontrollably. It is typically characterized by a period of very high and accelerating inflation rates, usually above 50% per month. During hyperinflation, the value of money rapidly decreases, and people may lose confidence in the currency, leading to a collapse in the economy.
The Execution of the Bet: Smart Contracts and Custodians
To ensure the bet’s settlement in case of digital dollar devaluation, Srinivasan proposed using a mutually agreed custodian or executing the stake through a smart contract. This would allow the use of the USDC stablecoin instead of US dollars.
The bet has drawn significant attention in the crypto community, sparking discussions on its feasibility and potential risks and rewards.
Why Balaji Believes in Hyperinflation
Balaji argues that banks and regulators have lied to depositors and dollar holders about the insolvency of banks, much like in the 2008 financial crisis.
He also highlights that the U.S. government recently printed $300 billion “out of thin air“ as a bailout following the collapse of three prominent banks in the country (Silvergate, Silicon Valley, and Signature Bank). Srinivasan claims that the central bank, banks, and regulators have bankrupted everyone and predicts that hyperinflation will occur very quickly in the digital age:
Who is Balaji Srinivasan?
Balaji Srinivasan is a tech founder and former Coinbase CTO who has been credited with calling the seriousness of the Covid-19 pandemic before the healthcare establishment. He is an influential figure in the cryptocurrency community and an advocate for the adoption of Bitcoin as a hedge against financial risks.
Recent Bank Failures: Good for Bitcoin?
The collapse of banks like Silicon Valley Bank (SVB), Signature Bank, and Silvergate has sent shockwaves through the financial system and has affected the price of Bitcoin positively. (Read more: News Bit: Bitcoin Soars to $28,000 Amid Global Market Chaos and Bank Liquidity Crisis)
This article is published on BitPinas: Bitcoin to Hit $1M in 90 Days? Ex-Coinbase CTO Bets Amid Hyperinflation Fears
Disclaimer: BitPinas articles and its external content are not financial advice. The team serves to deliver independent, unbiased news to provide information for Philippine-crypto and beyond.
