Bitcoin has had a tremendous year. It is the world’s most famous cryptocurrency and has been gaining value since the start of 2021. Balaji Srinivasan, the former Chief Technology Officer (CTO) of Coinbase, predicts that bitcoin could be worth $1 million in just 90 days.
Srinivasan’s prediction comes amid a banking crisis in the US that could trigger a massive Federal Reserve earthquake, leading to hyperinflation.
The unprecedented move by the Fed comes as it continues to battle inflation, which hit a 40-year high last year. The Fed raised interest rates at an unprecedented pace in an attempt to kill inflation, but also put pressure on banks.
The Banking Crisis
Bitcoin, Ethereum, and other major cryptocurrencies have surged in value amid a banking crisis that could trigger a massive Federal Reserve earthquake. According to JPMorgan analysts, the Fed’s new bank backstop program could inject as much as $2 trillion into the financial system.
Tech investor and former Coinbase CTO, Balaji Srinivasan, has warned that this latest banking crisis could trigger hyperinflation in the US. He advised people to “buy bitcoin now and get their coins off the exchanges.”
Balaji Srinivasan’s Prediction
Srinivasan predicts that bitcoin could be worth $1 million in just 90 days. He responded to a Twitter user with the alias @jdcmedlock, who posted that he would “bet anyone a million dollars that the U.S. doesn’t go into hyperinflation.” Srinivasan outlined the terms of the bet: if bitcoin is worth more than US$ 1 million in 90 days, then he wins, and if it is worth less, “the counterparty gets the US$ 1 million.
Just as in 2008, the bankers lied.
This time, the central bankers, the banks, and the bank regulators have lied to all dollar holders and depositors.
— Balaji (@balajis) March 17, 2023
We have to define hyperinflation in terms of [bitcoin] versus [U.S. dollars], because all other fiat currencies can – and will – inflate.”
Srinivasan’s prediction means that bitcoin’s price would increase by 3,600% by June 16. He made a $1 million bet that the price of bitcoin would surpass $1 million in just 90 days.
The bitcoin, put on behalf of @jdcmedlock by professional poker player Isaac Haxton, and Srinivasan’s dollars will be guarded by crypto-influencer and podcast host Jordan Fish, who tweets under the alias @Cobie.
Coinbase CTO’s Bitcoin Forecast
“The central bank, banks, and banking regulators bankrupted us all,” tweeted Srinivasan, who is credited with reporting the severity of the Covid-19 pandemic to the health establishment. “They hid their insolvency from us, the depositors. And they are about to print $2 trillion to hyperinflate the dollar. In the digital age, this will happen very quickly. So buy bitcoin now and get your coins off the exchanges.”
The Future of Bitcoin
Bitcoin’s rise has been meteoric in recent years, and its potential as a store of value and a means of exchange is still in its early stages. While some experts predict that bitcoin could be worth $1 million in the future, others caution that the cryptocurrency is still too volatile to be considered a reliable investment.
In any case, bitcoin has proven to be a resilient asset that has survived numerous downturns and crises. The fact that prominent investors like Srinivasan are betting on its future is a testament to its potential as a revolutionary new asset class.
“Bitcoin benefits from fully guaranteed deposit insurance by the government, the drop in inflation to the 3% level, which allows the central bank to be less aggressive, and the regulatory overreach that hit stable currencies like BUSD and, recently, USDC,” Markus Thielen, head of research and strategy at Matrixport, wrote in an emailed note.
“Bitcoin loves liquidity and is the leading crypto of choice when those liquidity floodgates are switching, as they are now.”
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