Former Coinbase CTO places a $2 million stake in Bitcoin’s success

Balaji Srinivasan has forecast that owing to hyperinflation in the United States, Bitcoin would hit $1 million within 90 days.

The former chief technical officer of Coinbase, Balaji Srinivasan, has wagered a million dollars that Bitcoin’s price would hit $1 million by June 17.

On March 17, a pseudo-Twitter account named James Medlock placed a $1 million wager that the United States would not face hyperinflation. The former Coinbase CEO accepted the wager a few hours later.

If Bitcoin’s price does not reach $1 million by June 17, Medlock will get $1 million worth of the dollar-pegged stablecoin USD Coin and 1 Bitcoin. Similarly, if Bitcoin is valued at least $1 million before the due date, Balaji may retain 1 BTC and $1 million in USDC. Srinivasan clarified inside the thread:

“You purchase 1 BTC. I’ll send USD 1,000,000. This represents a chance of 40:1 given that 1 Bitcoin is worth around $26,000. “The period is ninety days.”

According to the discussion, additional Twitter users assisted in establishing a smart contract with the wagering conditions. Srinivasan said he would transfer $1 million USDC for a bet on the same subject.

“I am transferring $2M to USDC for the stake. I will do it with Medlock and one other individual, which will enough to prove my thesis. See my upcoming tweet. Everyone else should immediately purchase Bitcoin, since it will be considerably cheaper than storing one for 90 days.”

Medlock and Srinivasan made a bet based on their opposing assessments about the future of the U.S. economy in the context of continuous financial turmoil.

Srinivasan claims that a looming crisis would lead to the depreciation of the U.S. dollar and, as a result, to a hyperinflation scenario in which the price of Bitcoin will reach $1 million. On the other hand, Medlock is pessimistic about the impending hyperinflation in the nation.

Bitcoin’s price hit $27,387 at the time of writing. Its market value increased by over $194 billion year-to-date and 66% in 2023, beating Wall Street bank equities despite worries about a worldwide financial problem.

In addition, BTC’s price has diverged from U.S. equities for the first time in a year, climbing over 65% compared to the S&P 500’s 2.5% rise and the Nasdaq’s 15% loss, as reported by Cointelegraph.

Read Also: Microsoft apparently tests Web3 wallet integration in the Edge browser

Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

Comments are closed.