Former Coinbase CTO Loses Bet To Reach $1 Million In Bitcoin

Settlement ahead of deadline

Former Coinbase Chief Technology Officer Balaji Srinivasan announced today that he has lost a bet that Bitcoin will surge to $1 million in 90 days.

I just burned a million to tell you they’re printing trillions. pic.twitter.com/pX5622rjUO

— Balaji (@balajis) May 2, 2023

On March 18, shortly after the failures of Silicon Valley Bank and Signature Bank, Srinivasan warned of the possibility of hyperinflation and economic collapse in the United States, stating that Bitcoin could reach $1 million in the next 90 days. I made a reckless bet that I would reach it. It all started with a tweet that said, “I’m betting $1 million that the US won’t go into hyperinflation.”

connection:Former Coinbase CTO Warns of US Dollar Hyperinflation, Bet on Bitcoin Hitting $1 Million

With 45 days left before the deadline for the winner to be decided, he said he and his bettor, Twitter contributor James Medlock (pseudonym), agreed to end the bet. The contents of the agreement are as follows.

• Pay $5 million to Mr. Medlock
• Donated $5 million to non-profit organization Give Directly
• Donated $5 million to the development of Bitcoin Core

Srinivasan insisted that he could not rely on information issued by the government about the deterioration of the economic situation as to why he contributed $ 1.5 million more than the bet. U.S. Treasury Secretary Janet Yellen has accused the U.S. of failing to sound the alarm when the Lehman Brothers bankruptcy of 2008 saw a crisis approaching.

That’s why he decided to use his own money to issue “expensive and verifiable warnings” to inform people about an economic problem that “is not just a financial crisis, it’s a fiat currency crisis.”

Similarities to 2008

Srinivasan points to similarities between the current US situation and the situation before the 2008 Lehman shock.

On April 10, 2008, then-Chairman of the US Federal Reserve (Fed) Ben Bernanke said the US “may be facing a mild recession” after intervening in a massive bank failure. . 158 days later, the global financial crisis hit and “Wall Street fled to the exit and printing trillions of dollars” began before society knew what was going on.

On April 13, 2023, FRB Chairman Jerome Powell made similar remarks as former Chairman Bernanke as if to dispel market concerns after intervening in a large-scale bank failure.

Srinivasan said today that “the world is now able to escape Fed control in ways it could not in 2008,” so “the early warning of the next global meltdown triggered by the Fed is It’s worth more than $1 million to the public good.”

Srinivasan sees a 10% chance of the U.S. defaulting in the next few months, 70% in the next few years, 19% in the decades and 1% in the hundreds of years. .

Meanwhile, a Twitter poll (13,978 votes) found that 50.5% expected default to occur in a few years and 28.4% in a few months.

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