Venture capital investor and former Coinbase CTO, Balaji Srinivasan, has made a bold bet on Bitcoin, predicting that the cryptocurrency will reach $1 million in value in the next 90 days.
I will take that bet.— Balaji (@balajis) March 17, 2023
You buy 1 BTC.
I will send $1M USD.
This is ~40:1 odds as 1 BTC is worth ~$26k.
The term is 90 days.
All we need is a mutually agreed custodian who will still be there to settle this in the event of digital dollar devaluation.
If someone knows how to do this… https://t.co/tcuBNd679T pic.twitter.com/6Aav9KeJpe
Srinivasan plans to participate in the bet by transferring $2 million into USD Coin stablecoins. He believes that the world will soon be engulfed by a "hyperinflationary" environment, in which Bitcoin will become digital gold. He predicts that not only private investors, but also commercial firms, funds, and even governments, such as those of the US, the Middle East, and the EU, will actively buy BTC.
"I will take that bet. You buy 1 BTC. I will send $1M USD. This is ~40:1 odds as 1 BTC is worth ~$26k. The term is 90 days. All we need is a mutually agreed custodian who will still be there to settle this in the event of digital dollar devaluation. If someone knows how to do this with a smart contract, we can do it on chain, so I can send USDC. If you won't do that, name a custodian"
Balaji (@balajis) March 17, 2023
Srinivasan believes that the US Federal Reserve (Fed) is deliberately hiding from the world community how many assets are actually on the balance sheets of American banks. In his opinion, as soon as people realize the deception, then everything will happen very quickly, and all dollar liquidity will be destroyed.
"REGULATORS KNEW BANKS WERE INSOLVENT, BUT DIDN'T NOTIFY DEPOSITORS. Why was this banking crisis such a surprise? Is it really your job to diligence your employer's bank's financials? Aren't you paying for regulators to do that? Unfortunately, the regulators were captured. As these posts from Sept 2022 and Nov 2022 show, regulators like FDIC and the Fed *knew* that SVB — and hundreds of other banks — had less assets than their liabilities. In other words, the banks didn't have your money. They intentionally used accounting tricks to hide their insolvency. And the regulators let them hide things in footnotes. What the regulators didn't do was notify you, the depositors, that all your money was gone. You paid for all the regulation, and got none of the consumer protection,"wrote Srinivasan.
Srinivasan also claims that the US Federal Reserve is deliberately hiding the true amount of assets on American banks' balance sheets, and that all dollar liquidity will be destroyed once this deception is exposed. He advises investors to buy Bitcoin in advance, and believes that the game will be over once Indian Prime Minister Narendra Modi instructs the Central Bank of India to buy BTC.
Under the terms of Srinivasan's bet, the losing side pays the winner $1 million. While the current value of Bitcoin is around $27,500, Srinivasan believes that the cryptocurrency's value will continue to rise in the coming months, leading to a potential payoff for those willing to take the risk.
To facilitate the bet, Srinivasan has called for a mutually agreed custodian to ensure that the wager is settled in the event of digital dollar devaluation. If possible, he would like to use a smart contract to make the bet, so he can send USDC directly. He has also stated that if the bet goes through, the losing side will have to pay the winner in Bitcoin or another cryptocurrency, rather than in US dollars.
Srinivasan's bet has been met with skepticism from some in the crypto community, who see it as overly optimistic. However, others argue that the current macroeconomic environment, with high inflation and low interest rates, could create the conditions for a Bitcoin bull run.
It remains to be seen whether Srinivasan's prediction will come true, but his willingness to back up his beliefs with a significant amount of money shows just how confident he is in Bitcoin's future prospects. Whether other investors will follow his lead and make similar bets remains to be seen, but it is clear that Bitcoin continues to generate interest and excitement among those who see it as a potential hedge against inflation and economic uncertainty.
It is worth noting that Srinivasan has been a long-time advocate for Bitcoin and other cryptocurrencies, and has been involved in the industry for many years. As the former CTO of Coinbase, he played a key role in the growth of one of the world's largest cryptocurrency exchanges, and he has also been an active investor in the space.
Srinivasan's bet on Bitcoin is just one example of the growing interest in cryptocurrencies among investors and traders. While the market is still volatile and unpredictable, many believe that digital assets like Bitcoin have the potential to offer significant returns in the long run.
As more and more institutional investors enter the space, and as governments around the world explore the possibility of launching their own digital currencies, the cryptocurrency market is likely to continue to evolve and mature.
Whether Bitcoin reaches $1 million in the next 90 days remains to be seen, but the fact that investors like Srinivasan are willing to make such bets shows just how far the industry has come in recent years. As the world continues to grapple with economic uncertainty and financial instability, it seems likely that interest in cryptocurrencies will only continue to grow.