Former Coinbase CTO Places $2 Million Bet That Bitcoin Will Hit $1 Million In 90 Days

Please fol­low and like us:
Pin Share

Bal­a­ji Srini­vasan, a for­mer CTO of Coin­base, has placed a $2 mil­lion bet that Bit­coin would hit the $1 mil­lion price mark in 90 days. This bet was in response to finan­cial expert James Med­lock who pro­posed a $1 mil­lion bet that the US would not enter hyper­in­fla­tion despite the recent col­lapse of banks in the country. 

Bitcoin Will Hit $1 Million In 90 Days, Balaji Says

In a Twit­ter thread on March 17, Bal­a­ji explained his views and why he was propos­ing the bet. He claims the cur­rent bank­ing sit­u­a­tion is sim­i­lar to the 2008 finan­cial cri­sis, but this time, cen­tral bankers, banks, and reg­u­la­tors have lied to all dol­lar hold­ers and depos­i­tors. Accord­ing to the investor, the bank­ing cri­sis was beyond frac­tion­al reserves as banks do not have enough funds on a mar­ket-to-mar­ket basis to cov­er withdrawals. 

Bal­a­ji also alleges that banks saw the crash com­ing but were allowed by reg­u­la­tors to hide their lit­er­al insol­ven­cy until it became a major prob­lem. Cit­ing the tra­vails of for­mer FTX chief exec­u­tive Sam Bankman-Fried, he added that banks deployed a sim­i­lar sys­tem of using cus­tomer deposits to invest in ques­tion­able bonds. 

Relat­ed Read­ing: Sig­na­ture Bank Buy­ers Have To Give Up All Cryp­to Busi­ness­es, Says FDIC

‘’They all used the deposits to buy the ulti­mate shit­coin: long-dat­ed US Trea­suries. And they all got rekt at the same time, in the same way, because they bought the same asset from the same ven­dor who deval­ued it at the same time: the Fed,’’ Bal­a­ji said.

But that’s not all. Bal­a­ji claims that the cur­rent bank­ing cri­sis will lead to what he calls as “hyper­bit­coiniza­tion,” a phe­nom­e­non where the world rede­nom­i­nates Bit­coin as dig­i­tal gold, sim­i­lar to the mod­el used before the 20th cen­tu­ry with phys­i­cal gold. He added that indi­vid­u­als, firms, and large funds like sov­er­eign coun­tries will buy Bit­coin to hedge against hyper­in­fla­tion in the com­ing weeks. 

Paint­ing a grim pic­ture, Bal­a­ji believes that hyper­in­fla­tion will occur fast once dol­lar hold­ers real­ize that the Fed has lied about how much mon­ey is in the banks. Cit­ing a chart of the long-term depre­ci­a­tion of USD/BTC, the ana­lyst believes a sig­nif­i­cant drop-off will occur in the com­ing weeks. 

Bal­a­ji believes USD has shown long term depre­ci­a­tion to BTC and this is set to con­tin­ue @source Twitter/balaji

Bal­a­ji con­cludes by stat­ing he’ll be mov­ing $2 mil­lion into USDC for the bet. This will be split into $1 mil­lion bet with Med­lock and $1 mil­lion with anoth­er per­son. “Terms of the bet: ide­al­ly, some­one can set up a smart con­tract where BTC is worth >$1M in 90 days, then I win. If it’s worth less than $1M in 90 days, then the coun­ter­par­ty gets the $1M in USD,” he proposed.

Relat­ed Read­ing: Bit­coin Price Nears $28,000 As BTC Hur­tles To Its High­est Lev­el Since June

Arthur Hayes, the for­mer CEO of Bit­Mex, also agrees that BTC could reach $1 mil­lion. Hayes tweet­ed “BTC = $1 mil­lion,” with a screen­shot of a Bloomberg arti­cle that report­ed China’s deci­sion to reduce the reserve repo rate (RRR). 

Crypto Community Has Mixed Reactions

Unsur­pris­ing­ly, Balaji’s bet drew mixed reac­tions from the cryp­to com­mu­ni­ty. While a few believe his con­vic­tions could be right, the major­i­ty are will­ing to take his bet. Bitcoin’s price is cur­rent­ly around $27,000 at the time of writing. 

BTC set to test the $28k resistance levels
BTC set to test the $28k resis­tance lev­els @source Tradingview

Fea­tured image from Unsplash, charts from Trad­ingview and Twitter



Source link

Please fol­low and like us:
Pin Share

Leave a Reply

Your email address will not be published. Required fields are marked *