Former Coinbase CTO Wagers $2M on Bitcoin’s Surge to $1M in 90 Days Amid Banking Worries

Bal­a­ji S. Srini­vasan, angel investor and a for­mer Coin­base CTO, has announced on Twit­ter his inten­tion to bet $2 mil­lion on Bit­coin reach­ing $1 mil­lion with­in the next 90 days.

Srini­vasan out­lined his belief that cen­tral banks, banks, and reg­u­la­tors have been dis­hon­est with dol­lar hold­ers and depos­i­tors. He claimed the indus­try is grap­pling with an insol­ven­cy cri­sis, point­ing to undis­closed issues and mark-to-mar­ket losses.

Srini­vasan high­light­ed that the prob­lem stems from banks hav­ing pur­chased large quan­ti­ties of long-dat­ed US Trea­suries, which he dubbed the “ulti­mate shit­coin.” He assert­ed that these insti­tu­tions were mis­led into believ­ing the Fed­er­al Reserve would keep inter­est rates low indef­i­nite­ly, lead­ing them to make risky investments.

The for­mer Coin­base CTO crit­i­cized the Fed­er­al Reserve’s recent inter­est rate hikes, which he believes are respon­si­ble for the cur­rent bank­ing cri­sis. He argued that the abrupt shift in mon­e­tary pol­i­cy hurt those who bet on long-term Trea­suries, expos­ing them to sig­nif­i­cant losses.

As a result of these con­cerns, Srini­vasan has opt­ed to move $2 mil­lion into the USDC sta­ble­coin to place his bet. This move demon­strates his con­fi­dence in Bitcoin’s poten­tial growth as a safer invest­ment alter­na­tive amidst the alleged bank­ing crisis.

He has con­firmed that he will place the bet with Med­lock and anoth­er indi­vid­ual to under­score his con­vic­tion in the cryptocurrency’s future performance.

Pseu­do­ny­mous cryp­tocur­ren­cy ana­lyst “Pen­toshi” cau­tions that a rapid increase in Bitcoin’s val­ue to $1 mil­lion with­in 90 days, along with hyper­in­fla­tion, could result in wide­spread civ­il unrest, riots, and lim­it­ed access to essen­tial goods.