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- 1 Former Coinbase CTO shows faith in Bitcoin’s price.
- 2 BTC is trading at 28,139 USD, with a 28% up in the last week.
One bullish claim in support of the US economy to remain un-hyperinflated turned into a million USD worth wager. The conversation caught much of the attention later, with former Coinbase CTO Balaji Srinivasan joining it. Not so surprisingly, the conversation drifted from financial situations in the country to Bitcoin (BTC)’s attaining unprecedented dominance. Srinivasan claimed that hyperinflationary circumstances would make Bitcoin (BTC) price reach 1 million USD in just 90 days.
The spark ignited after a tweet on March 17, 2023, from a pseudonym user with considerable followers, James Medlock. Given his optimism in the growth of the US economy, Medlock put a 1 million USD bet on the economy to “not enter hyperinflation.” Probably this could be just another claim thrown over social media until Balaji Srinivasan entered the conversation.
SrinivasanPuts 1Mn USD Bet on BTC
Srinivasan made a bold claim citing his belief that the Bitcoin price to hit 1 million USD in 90 days, i.e., by June 17, 2023. He said to take the bet and asked to buy 1 BTC. To make it more reliable, he proposed to put the wager over a smart contract with the condition: “BTC is worth > $1M in 90 days.”
Deciphering his claim, if Bitcoin (BTC) does not hit 1 million USD in 90 days, he will give 1 million USD to the counterparty. He started to accumulate USDC worth 2 million USD to take the bet with one more person other than Medlock.
The global economy is shifting towards “hyperbitcoinization,” he added, and this will take place in response to the devaluation of US dollar dominance worldwide. While defining the terms, he put, “we have to define hyperinflation in BTC vs. USD terms because all other fiat currencies can and will be inflated away. That is hyperbitcoinization.”
Considering the current price of Bitcoin at around 27,000 USD, to reach 1 million USD in the estimated June 17, the value will have to jump up to 40 times.
Bitcoin (BTC) Stood Well Against the USD
In support of his claim, the entrepreneur added two sources of warning regarding the depreciation in the value of USD: depreciation of USD vs. BTC and his tweet. Citing the chart, he stated USD depreciated from 1 USD to 25,000 USD per BTC.
Srinivasan said that though the end is not visible on the chart the world can see it. The dollar has witnessed a lot of smart money to go against in the later years after the financial crisis. In his tweet, he said that the people supporting the US government would ignore and mock it, but later it would be found that the banks and media were lying.
Not Everyone’s in Favor
According to Benzinga, prominent crypto analyst Miles Deutschar did not take Srinivasan’s claim of Bitcoin hitting 1 million USD but instead denied it. The analyst said the “hyperbitcoinization theory” was the reason behind the surfacing of this wager. He said the entrepreneur used his absurd bet to push his narrative.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
