Coinbase’s former chief technology officer, Balaji Srinivasan, closed in early on a bet that the bitcoin price would hit $1 million by mid-June amid US dollar hyperinflation. Srinivasan paid out a total of $1.5 million, over $1 million initially, with two-thirds of the money being donated to two organizations.
A former Coinbase CEO has settled a $1 million bet on Bitcoin ahead of time
Balaji Srinivasan, former CTO of US cryptocurrency exchange Coinbase, has closed his $1 million bet on bitcoin with pseudonymous Twitter analyst James Medlock. On Tuesday, Srinivasan announced on his website and social media that he had settled the apparently losing bet early on.
Medlock made a bet on March 16 when he tweeted: “I’ll bet anyone a million dollars that the United States won’t go into hyperinflation.” Srinivasan took it the next day, and asked Medlock to buy 1 BTC He promised to send $1 million if the price of the leading cryptocurrency did not reach $1 million within 90 days.
Under a mutual agreement with Medlock, the venture capitalist donated $500,000 to the developers of Bitcoin Core at Chaincode Labs and an equal amount of money to Give Directly, a charity that supports people living in poverty in Africa and America. The final third of the $1.5 million in USDC was paid to Medlock who tweeted:
I can finally say it: I settled the bet early @employee! Took a while to work out the details but continued in good faith and you can see the on-chain money receipt in the following tweet. My $500k (so I get 30% after tax as planned) and my $500k @employee
– James Medlock (@jdcmedlock) May 2, 2023
Balaji Srinivasan said in his book blog postHe warned that we are not facing financial crises, but a fiat crisis. In a video title posted to Twitter, the angel investor explained that the main reason he did this was to send a signal that:
There is something wrong with the economy and the state is not telling you about it.
The tech entrepreneur has replicated the problems in the US banking sector. He took the bet after the failures of Silvergate Bank, Signature Bank, and Silicon Valley Bank, predicting a banking crisis that would fuel a massive devaluation of the US currency.
He highlighted other potential challenges such as sovereign default, negative developments in bond, real estate and other markets, rising credit card debt, rising energy prices in Europe, the mounting costs of the Ukraine war, and the trend of de-dollarization.
I just burned a million to tell you they print trillions. pic.twitter.com/pX5622rjUO
Balaji (balajis) May 2, 2023
“God only knows how many days we have until, if and when, a fiat crisis happens… What I do know is that when it does happen, Powell will not warn you. He is still talking about a soft landing,” Srinivasan said, referring to US Federal Reserve Chairman Jerome Powell. .
Balaji Srinivasan thinks this crash is likely to be worse than the previous one, since so many things are failing at once, insisting: “So I sounded the alarm, I did my duty as a citizen. That’s why I burned a million to tell you they are printing trillions.”
Do you agree with Balaji Srinivasan’s warnings about a deep crisis coming in the Fiat system? Share your thoughts on the topic in the comments section below.
Image credits: Shutterstock, Pixabay, WikiCommons, Balaji Srinivasan
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